We are currently facing an issue in receiving the NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

IFGL REFRACTORIES 2022-23 Annual Report Analysis

Tue, 15 Aug

IFGL REFRACTORIES 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.

IFGL REFRACTORIES Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY23 as against 10.6% in FY22.
• Depreciation charges increased by 8.6% and finance costs increased by 42.0% YoY, respectively.
• Other income grew by 46.8% YoY.
• Net profit for the year grew by 2.2% YoY.
• Net profit margins during the year declined from 6.2% in FY22 to 5.7% in FY23.

IFGL REFRACTORIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,595	13,865	10.1%
Other income	Rs m	253	372	46.8%
Total Revenues	Rs m	12,848	14,237	10.8%
Gross profit	Rs m	1,332	1,289	-3.2%
Depreciation	Rs m	511	556	8.6%
Interest	Rs m	34	48	42.0%
Profit before tax	Rs m	1,039	1,057	1.7%
Tax	Rs m	265	265	0.1%
Profit after tax	Rs m	775	792	2.2%
Gross profit margin	%	10.6	9.3
Effective tax rate	%	25.5	25.1
Net profit margin	%	6.2	5.7

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

IFGL REFRACTORIES 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 8.3%.
• Long-term debt stood at Rs 496 million as compared to Rs 87 million during FY22, a growth of 472.8%.
• Current assets rose 4% and stood at Rs 8 billion, while fixed assets rose 23% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 11%.

IFGL REFRACTORIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,340	10,050	7.6
Current Liabilities	Rs m	2,854	3,090	8.3
Long-term Debt	Rs m	87	496	472.8
Total Liabilities	Rs m	12,861	14,259	10.9
Current assets	Rs m	8,052	8,361	3.8
Fixed Assets	Rs m	4,809	5,898	22.6
Total Assets	Rs m	12,861	14,259	10.9

IFGL REFRACTORIES Cash Flow Statement Analysis

• IFGL REFRACTORIES 's cash flow from operating activities (CFO) during FY23 stood at Rs 63 million, an improvement of 44.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 410.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 498 million, an improvement of 816% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -622 million from the Rs -285 million net cash flows seen during FY22.

IFGL REFRACTORIES 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	44	63	44.1%
Cash Flow from Investing Activities	Rs m	-240	-1,227	-
Cash Flow from Financing Activities	Rs m	-70	498	-
Net Cash Flow	Rs m	-285	-622	-

Current Valuations for IFGL REFRACTORIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.0, an improvement from the EPS of Rs 21.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 474.6, stands at 18.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	349.5	384.7
TTM Earnings per share	Rs	21.5	22.0
Diluted earnings per share	Rs	21.5	22.0
Price to Cash Flow	x	7.2	6.9
TTM P/E ratio	x	12.0	18.1
Price / Book Value ratio	x	1.3	0.9
Market Cap	Rs m	12,214	9,351
Dividends per share (Unadj.)	Rs	7.0	7.0

Ratio Analysis for IFGL REFRACTORIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY23, from 2.8x 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 22.8x during FY23, from 31.5x 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 7.9% during FY23, from 8.3% 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 10.5% during FY23, from 11.4% 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 declined and down at 5.9% during FY23, from 6.3% 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	2.8	2.7
Debtors’ Days	Days	788	921
Interest coverage	x	31.5	22.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	5.9
Return on equity	%	8.3	7.9
Return on capital employed	%	11.4	10.5

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

IFGL REFRACTORIES Share Price Performance

Over the last one year, IFGL REFRACTORIES share price has moved up from Rs 267.6 to Rs 474.6, registering a gain of Rs 207.0 or around 77.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,481.0 (down 1.8%). Over the last one year it has moved up from 19,240.0 to 21,481.0, a gain of 2,241 points (up 11.6%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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