FINOLEX CABLES 2022-23 Annual Report Analysis

Tue, 12 Sep

FINOLEX CABLES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

FINOLEX CABLES Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY23 as against 20.0% in FY22.
• Depreciation charges increased by 19.4% and finance costs decreased by 18.4% YoY, respectively.
• Other income grew by 57.7% YoY.
• Net profit for the year declined by 15.8% YoY.
• Net profit margins during the year declined from 15.9% in FY22 to 11.3% in FY23.

FINOLEX CABLES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,681	44,811	18.9%
Other income	Rs m	749	1,182	57.7%
Total Revenues	Rs m	38,431	45,993	19.7%
Gross profit	Rs m	7,521	5,789	-23.0%
Depreciation	Rs m	389	464	19.4%
Interest	Rs m	15	12	-18.4%
Profit before tax	Rs m	7,866	6,495	-17.4%
Tax	Rs m	1,875	1,452	-22.6%
Profit after tax	Rs m	5,991	5,043	-15.8%
Gross profit margin	%	20.0	12.9
Effective tax rate	%	23.8	22.4
Net profit margin	%	15.9	11.3

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FINOLEX CABLES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 9.0%.
• Long-term debt down at Rs 3 million as compared to Rs 3 million during FY22, a fall of 10.7%.
• Current assets rose 15% and stood at Rs 32 billion, while fixed assets rose 4% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 50 billion as against Rs 45 billion during FY22, thereby witnessing a growth of 11%.

FINOLEX CABLES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	39,221	43,704	11.4
Current Liabilities	Rs m	2,937	3,201	9.0
Long-term Debt	Rs m	3	3	-10.7
Total Liabilities	Rs m	44,940	49,805	10.8
Current assets	Rs m	27,973	32,116	14.8
Fixed Assets	Rs m	16,968	17,689	4.2
Total Assets	Rs m	44,940	49,805	10.8

FINOLEX CABLES Cash Flow Statement Analysis

• FINOLEX CABLES's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -967 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 350 million from the Rs 78 million net cash flows seen during FY22.

FINOLEX CABLES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	4,731	3,563	-24.7%
Cash Flow from Investing Activities	Rs m	-3,783	-2,246	-
Cash Flow from Financing Activities	Rs m	-869	-967	-
Net Cash Flow	Rs m	78	350	349.6%

Current Valuations for FINOLEX CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.0, an decline from the EPS of Rs 39.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,080.0, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	246.4	293.0
TTM Earnings per share	Rs	39.2	33.0
Diluted earnings per share	Rs	39.2	33.0
Price to Cash Flow	x	9.1	16.5
TTM P/E ratio	x	21.2	35.4
Price / Book Value ratio	x	1.9	2.1
Market Cap	Rs m	73,354	91,121
Dividends per share (Unadj.)	Rs	6.0	7.0

Ratio Analysis for FINOLEX CABLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 10.0x during FY23, from 9.5x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 524.8x during FY23, from 518.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 11.5% during FY23, from 15.3% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 14.9% during FY23, from 20.1% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.2% during FY23, from 13.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	9.5	10.0
Debtors’ Days	Days	2	2
Interest coverage	x	518.5	524.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	10.2
Return on equity	%	15.3	11.5
Return on capital employed	%	20.1	14.9

To see how FINOLEX CABLES has performed over the last 5 years, please visit here.

FINOLEX CABLES Share Price Performance

Over the last one year, FINOLEX CABLES share price has moved up from Rs 484.7 to Rs 1,080.0, registering a gain of Rs 595.3 or around 122.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,302.3 (down 0.9%). Over the last one year it has moved up from 33,609.5 to 47,302.3, a gain of 13,693 points (up 40.7%).

Overall, the S&P BSE SENSEX is up 12.4% over the year.

(To know more, check out historical annual results for FINOLEX CABLES and quarterly results for FINOLEX CABLES)