UFLEX 2022-23 Annual Report Analysis

Wed, 2 Aug

UFLEX 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.

UFLEX Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY23 as against 16.1% in FY22.
• Depreciation charges increased by 11.5% and finance costs increased by 46.8% YoY, respectively.
• Other income grew by 35.0% YoY.
• Net profit for the year declined by 56.3% YoY.
• Net profit margins during the year declined from 8.4% in FY22 to 3.3% in FY23.

UFLEX Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	131,271	146,625	11.7%
Other income	Rs m	1,220	1,647	35.0%
Total Revenues	Rs m	132,491	148,272	11.9%
Gross profit	Rs m	21,199	15,638	-26.2%
Depreciation	Rs m	5,371	5,990	11.5%
Interest	Rs m	3,225	4,734	46.8%
Profit before tax	Rs m	13,823	6,560	-52.5%
Tax	Rs m	2,829	1,753	-38.0%
Profit after tax	Rs m	10,994	4,808	-56.3%
Gross profit margin	%	16.1	10.7
Effective tax rate	%	20.5	26.7
Net profit margin	%	8.4	3.3

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UFLEX Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 48 billion as compared to Rs 41 billion in FY22, thereby witnessing an increase of 18.9%.
• Long-term debt stood at Rs 35 billion as compared to Rs 31 billion during FY22, a growth of 12.7%.
• Current assets rose 13% and stood at Rs 76 billion, while fixed assets rose 14% and stood at Rs 89 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 164 billion as against Rs 144 billion during FY22, thereby witnessing a growth of 14%.

UFLEX Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	66,866	74,962	12.1
Current Liabilities	Rs m	40,777	48,474	18.9
Long-term Debt	Rs m	30,718	34,634	12.7
Total Liabilities	Rs m	144,411	164,377	13.8
Current assets	Rs m	66,871	75,692	13.2
Fixed Assets	Rs m	77,540	88,685	14.4
Total Assets	Rs m	144,411	164,377	13.8

UFLEX Cash Flow Statement Analysis

• UFLEX's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 95.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 23.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion, an improvement of 35% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 billion from the Rs -275 million net cash flows seen during FY22.

UFLEX 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	7,086	13,827	95.1%
Cash Flow from Investing Activities	Rs m	-9,521	-11,716	-
Cash Flow from Financing Activities	Rs m	2,160	2,920	35.2%
Net Cash Flow	Rs m	-275	5,031	-

Current Valuations for UFLEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.6, an decline from the EPS of Rs 152.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 426.5, stands at 6.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 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	1,817.9	2,030.5
TTM Earnings per share	Rs	152.3	66.6
Diluted earnings per share	Rs	152.3	66.6
Price to Cash Flow	x	2.7	3.8
TTM P/E ratio	x	4.0	6.3
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	36,548	41,025
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for UFLEX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x 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 deteriorated and stood at 2.4x during FY23, from 5.3x 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 6.4% during FY23, from 16.4% 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 10.3% during FY23, from 17.5% 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 5.8% during FY23, from 9.8% 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	1.6	1.6
Debtors’ Days	Days	976	805
Interest coverage	x	5.3	2.4
Debt to equity ratio	x	0.5	0.5
Return on assets	%	9.8	5.8
Return on equity	%	16.4	6.4
Return on capital employed	%	17.5	10.3

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

UFLEX Share Price Performance

Over the last one year, UFLEX share price has moved down from Rs 624.4 to Rs 426.5, registering a loss of Rs 198.0 or around 31.7%.

Overall, the S&P BSE SENSEX is up 13.2% over the year.

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