INDIAN METALS 2022-23 Annual Report Analysis

Sat, 1 Jul

INDIAN METALS 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.

INDIAN METALS Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY23 as against 30.9% in FY22.
• Depreciation charges decreased by 2.7% and finance costs increased by 11.8% YoY, respectively.
• Other income grew by 2.2% YoY.
• Net profit for the year declined by 55.5% YoY.
• Net profit margins during the year declined from 19.5% in FY22 to 8.4% in FY23.

INDIAN METALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,030	26,764	2.8%
Other income	Rs m	238	243	2.2%
Total Revenues	Rs m	26,267	27,007	2.8%
Gross profit	Rs m	8,031	4,728	-41.1%
Depreciation	Rs m	1,102	1,073	-2.7%
Interest	Rs m	590	659	11.8%
Profit before tax	Rs m	6,577	3,239	-50.8%
Tax	Rs m	1,500	981	-34.6%
Profit after tax	Rs m	5,077	2,258	-55.5%
Gross profit margin	%	30.9	17.7
Effective tax rate	%	22.8	30.3
Net profit margin	%	19.5	8.4

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INDIAN METALS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 7 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -22.5%.
• Long-term debt down at Rs 54 million as compared to Rs 95 million during FY22, a fall of 43.0%.
• Current assets rose 33% and stood at Rs 15 billion, while fixed assets fell 32% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 28 billion during FY22, thereby witnessing a fall of 6%.

INDIAN METALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,154	18,729	9.2
Current Liabilities	Rs m	8,580	6,652	-22.5
Long-term Debt	Rs m	95	54	-43.0
Total Liabilities	Rs m	28,215	26,535	-6.0
Current assets	Rs m	11,288	15,018	33.0
Fixed Assets	Rs m	16,925	11,516	-32.0
Total Assets	Rs m	28,215	26,535	-6.0

INDIAN METALS Cash Flow Statement Analysis

• INDIAN METALS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs -1 million net cash flows seen during FY22.

INDIAN METALS 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	3,900	1,509	-61.3%
Cash Flow from Investing Activities	Rs m	-1,060	1,402	-
Cash Flow from Financing Activities	Rs m	-2,840	-2,905	-
Net Cash Flow	Rs m	-1	7	-

Current Valuations for INDIAN METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.8, an decline from the EPS of Rs 94.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 320.4, stands at 7.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.0 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	482.5	496.1
TTM Earnings per share	Rs	94.1	41.8
Diluted earnings per share	Rs	94.1	41.8
Price to Cash Flow	x	3.6	6.0
TTM P/E ratio	x	4.4	7.7
Price / Book Value ratio	x	2.0	1.1
Market Cap	Rs m	35,154	19,828
Dividends per share (Unadj.)	Rs	12.5	10.0

Ratio Analysis for INDIAN METALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.3x 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 5.9x during FY23, from 12.2x 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 12.1% during FY23, from 29.6% 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 20.8% during FY23, from 41.5% 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 11.0% during FY23, from 20.1% 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	1.3	2.3
Debtors’ Days	Days	2	1
Interest coverage	x	12.2	5.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.1	11.0
Return on equity	%	29.6	12.1
Return on capital employed	%	41.5	20.8

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

INDIAN METALS Share Price Performance

Over the last one year, INDIAN METALS share price has moved up from Rs 257.2 to Rs 320.4, registering a gain of Rs 63.2 or around 24.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,561.3 (up 0.3%). Over the last one year it has moved up from 15,612.5 to 20,561.3, a gain of 4,949 points (up 31.7%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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