OLECTRA GREENTECH 2022-23 Annual Report Analysis

Thu, 14 Sep

OLECTRA GREENTECH 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.

OLECTRA GREENTECH Income Statement Analysis

• Operating income during the year rose 83.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY23 as against 14.0% in FY22.
• Depreciation charges increased by 13.0% and finance costs increased by 238.7% YoY, respectively.
• Other income grew by 141.3% YoY.
• Net profit for the year grew by 89.2% YoY.
• Net profit margins during the year grew from 6.0% in FY22 to 6.1% in FY23.

OLECTRA GREENTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,933	10,908	83.9%
Other income	Rs m	77	186	141.3%
Total Revenues	Rs m	6,010	11,094	84.6%
Gross profit	Rs m	832	1,354	62.7%
Depreciation	Rs m	293	331	13.0%
Interest	Rs m	93	314	238.7%
Profit before tax	Rs m	523	894	71.0%
Tax	Rs m	170	225	33.0%
Profit after tax	Rs m	354	669	89.2%
Gross profit margin	%	14.0	12.4
Effective tax rate	%	32.4	25.2
Net profit margin	%	6.0	6.1

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OLECTRA GREENTECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 101.0%.
• Long-term debt down at Rs 92 million as compared to Rs 521 million during FY22, a fall of 82.2%.
• Current assets rose 46% and stood at Rs 11 billion, while fixed assets rose 1% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 31%.

OLECTRA GREENTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,773	8,397	8.0
Current Liabilities	Rs m	3,308	6,649	101.0
Long-term Debt	Rs m	521	92	-82.2
Total Liabilities	Rs m	11,904	15,569	30.8
Current assets	Rs m	7,847	11,464	46.1
Fixed Assets	Rs m	4,058	4,105	1.2
Total Assets	Rs m	11,904	15,569	30.8

OLECTRA GREENTECH Cash Flow Statement Analysis

• OLECTRA GREENTECH's cash flow from operating activities (CFO) during FY23 stood at Rs -103 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -378 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 352 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -129 million from the Rs 68 million net cash flows seen during FY22.

OLECTRA GREENTECH 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	1,214	-103	-
Cash Flow from Investing Activities	Rs m	-1,643	-378	-
Cash Flow from Financing Activities	Rs m	497	352	-29.3%
Net Cash Flow	Rs m	68	-129	-

Current Valuations for OLECTRA GREENTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,192.0, stands at 144.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 45.9 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	72.3	132.9
TTM Earnings per share	Rs	4.3	8.1
Diluted earnings per share	Rs	4.3	8.1
Price to Cash Flow	x	84.9	45.9
TTM P/E ratio	x	160.3	144.6
Price / Book Value ratio	x	5.9	5.5
Market Cap	Rs m	45,532	45,877
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for OLECTRA GREENTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 2.4x 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 3.8x during FY23, from 6.6x 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 improved and stood at 8.0% during FY23, from 4.5% 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 improved and stood at 14.2% during FY23, from 7.4% 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 improved and stood at 6.3% during FY23, from 3.7% 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	2.4	1.7
Debtors’ Days	Days	2,249	2,110
Interest coverage	x	6.6	3.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.7	6.3
Return on equity	%	4.5	8.0
Return on capital employed	%	7.4	14.2

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

OLECTRA GREENTECH Share Price Performance

Over the last one year, OLECTRA GREENTECH share price has moved up from Rs 622.4 to Rs 1,192.0, registering a gain of Rs 569.6 or around 91.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 36,480.5 (up 0.6%). Over the last one year it has moved up from 30,280.9 to 36,480.5, a gain of 6,200 points (up 20.5%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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