INDIGO PAINTS 2022-23 Annual Report Analysis

Mon, 17 Jul

INDIGO PAINTS 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.

INDIGO PAINTS Income Statement Analysis

• Operating income during the year rose 18.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY23 as against 15.0% in FY22.
• Depreciation charges increased by 9.9% and finance costs increased by 3.5% YoY, respectively.
• Other income declined by 7.6% YoY.
• Net profit for the year grew by 57.0% YoY.
• Net profit margins during the year grew from 9.3% in FY22 to 12.3% in FY23.

INDIGO PAINTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,060	10,733	18.5%
Other income	Rs m	109	101	-7.6%
Total Revenues	Rs m	9,169	10,834	18.2%
Gross profit	Rs m	1,360	1,815	33.5%
Depreciation	Rs m	313	343	9.9%
Interest	Rs m	13	14	3.5%
Profit before tax	Rs m	1,143	1,559	36.4%
Tax	Rs m	302	239	-20.9%
Profit after tax	Rs m	840	1,319	57.0%
Gross profit margin	%	15.0	16.9
Effective tax rate	%	26.5	15.4
Net profit margin	%	9.3	12.3

Emerging Opportunity: Bluechip Bull Run

INDIGO PAINTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 8.1%.
• Current assets fell 9% and stood at Rs 5 billion, while fixed assets rose 56% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 15%.

INDIGO PAINTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,471	7,663	18.4
Current Liabilities	Rs m	2,442	2,641	8.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,199	10,616	15.4
Current assets	Rs m	5,724	5,187	-9.4
Fixed Assets	Rs m	3,475	5,429	56.2
Total Assets	Rs m	9,199	10,616	15.4

INDIGO PAINTS Cash Flow Statement Analysis

• INDIGO PAINTS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 78.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -844 million, an improvement of 22.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -201 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 116 million from the Rs -93 million net cash flows seen during FY22.

INDIGO PAINTS 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	652	1,161	78.1%
Cash Flow from Investing Activities	Rs m	-692	-844	-
Cash Flow from Financing Activities	Rs m	-53	-201	-
Net Cash Flow	Rs m	-93	116	-

Current Valuations for INDIGO PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.7, an improvement from the EPS of Rs 17.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,488.9, stands at 53.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 39.0 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	190.5	225.5
TTM Earnings per share	Rs	17.7	27.7
Diluted earnings per share	Rs	17.7	27.7
Price to Cash Flow	x	66.0	39.0
TTM P/E ratio	x	90.5	53.7
Price / Book Value ratio	x	15.4	8.5
Market Cap	Rs m	99,337	64,799
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for INDIGO PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.3x 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 improved and stood at 114.3x during FY23, from 86.9x 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 17.2% during FY23, from 13.0% 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 20.5% during FY23, from 17.9% 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 12.6% during FY23, from 9.3% 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	2.3	2.0
Debtors’ Days	Days	692	680
Interest coverage	x	86.9	114.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	12.6
Return on equity	%	13.0	17.2
Return on capital employed	%	17.9	20.5

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

INDIGO PAINTS Share Price Performance

Over the last one year, INDIGO PAINTS share price has moved up from Rs 1,405.6 to Rs 1,488.9, registering a gain of Rs 83.3 or around 5.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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