FEDERAL - MOGUL G 2022-23 Annual Report Analysis

Tue, 7 Nov

FEDERAL - MOGUL G 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.

FEDERAL - MOGUL G Income Statement Analysis

• Operating income during the year rose 21.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.9% in FY23 as against 12.2% in FY22.
• Depreciation charges decreased by 3.9% and finance costs decreased by 2.0% YoY, respectively.
• Other income grew by 116.4% YoY.
• Net profit for the year grew by 82.6% YoY.
• Net profit margins during the year grew from 4.4% in FY22 to 6.6% in FY23.

FEDERAL - MOGUL G Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,426	16,341	21.7%
Other income	Rs m	89	193	116.4%
Total Revenues	Rs m	13,515	16,534	22.3%
Gross profit	Rs m	1,637	2,103	28.5%
Depreciation	Rs m	871	837	-3.9%
Interest	Rs m	50	49	-2.0%
Profit before tax	Rs m	806	1,410	75.1%
Tax	Rs m	217	337	54.8%
Profit after tax	Rs m	588	1,074	82.6%
Gross profit margin	%	12.2	12.9
Effective tax rate	%	27.0	23.9
Net profit margin	%	4.4	6.6

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FEDERAL - MOGUL G Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 12.2%.
• Current assets rose 19% and stood at Rs 8 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 11%.

FEDERAL - MOGUL G Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,758	9,796	11.9
Current Liabilities	Rs m	3,513	3,943	12.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,404	14,872	11.0
Current assets	Rs m	7,040	8,348	18.6
Fixed Assets	Rs m	6,364	6,525	2.5
Total Assets	Rs m	13,404	14,872	11.0

FEDERAL - MOGUL G Cash Flow Statement Analysis

• FEDERAL - MOGUL G's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 90.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -584 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -79 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -270 million net cash flows seen during FY22.

FEDERAL - MOGUL G 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	1,107	2,104	90.1%
Cash Flow from Investing Activities	Rs m	-1,301	-584	-
Cash Flow from Financing Activities	Rs m	-76	-79	-
Net Cash Flow	Rs m	-270	1,441	-

Current Valuations for FEDERAL - MOGUL G

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.3, an improvement from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 355.5, stands at 16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	241.3	293.8
TTM Earnings per share	Rs	10.6	19.3
Diluted earnings per share	Rs	10.6	19.3
Price to Cash Flow	x	10.1	9.0
TTM P/E ratio	x	25.1	16.8
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	15,724	17,115
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FEDERAL - MOGUL G

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 2.0x 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 29.6x during FY23, from 17.0x 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 11.0% during FY23, from 6.7% 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 14.9% during FY23, from 9.8% 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 7.6% during FY23, from 4.8% 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	2.0	2.1
Debtors’ Days	Days	724	608
Interest coverage	x	17.0	29.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.8	7.6
Return on equity	%	6.7	11.0
Return on capital employed	%	9.8	14.9

To see how FEDERAL - MOGUL G has performed over the last 5 years, please visit here.

FEDERAL - MOGUL G Share Price Performance

Over the last one year, FEDERAL - MOGUL G share price has moved up from Rs 314.6 to Rs 355.5, registering a gain of Rs 40.9 or around 13.0%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for FEDERAL - MOGUL G and quarterly results for FEDERAL - MOGUL G)