INDIAN TONERS 2022-23 Annual Report Analysis

Fri, 21 Jul

INDIAN TONERS 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 TONERS Income Statement Analysis

• Operating income during the year rose 29.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.4% in FY23 as against 21.3% in FY22.
• Depreciation charges decreased by 5.1% and finance costs increased by 35.5% YoY, respectively.
• Other income declined by 12.6% YoY.
• Net profit for the year grew by 26.9% YoY.
• Net profit margins during the year declined from 17.3% in FY22 to 17.0% in FY23.

INDIAN TONERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,196	1,552	29.7%
Other income	Rs m	44	38	-12.6%
Total Revenues	Rs m	1,240	1,590	28.2%
Gross profit	Rs m	254	347	36.6%
Depreciation	Rs m	41	39	-5.1%
Interest	Rs m	4	6	35.5%
Profit before tax	Rs m	253	341	34.9%
Tax	Rs m	45	78	71.9%
Profit after tax	Rs m	207	263	26.9%
Gross profit margin	%	21.3	22.4
Effective tax rate	%	17.9	22.8
Net profit margin	%	17.3	17.0

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INDIAN TONERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 196 million as compared to Rs 227 million in FY22, thereby witnessing an decrease of -13.5%.
• Current assets rose 92% and stood at Rs 1 billion, while fixed assets fell 31% and stood at Rs 854 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 13%.

INDIAN TONERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,653	1,883	13.9
Current Liabilities	Rs m	227	196	-13.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,923	2,171	12.9
Current assets	Rs m	688	1,317	91.5
Fixed Assets	Rs m	1,235	854	-30.8
Total Assets	Rs m	1,923	2,171	12.9

INDIAN TONERS Cash Flow Statement Analysis

• INDIAN TONERS's cash flow from operating activities (CFO) during FY23 stood at Rs 181 million, an improvement of 29.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -227 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -45 million, an improvement of 70% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -91 million from the Rs 31 million net cash flows seen during FY22.

INDIAN TONERS 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	140	181	29.2%
Cash Flow from Investing Activities	Rs m	43	-227	-
Cash Flow from Financing Activities	Rs m	-152	-45	-
Net Cash Flow	Rs m	31	-91	-

Current Valuations for INDIAN TONERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.3, an improvement from the EPS of Rs 19.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 267.3, stands at 11.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	110.2	143.0
TTM Earnings per share	Rs	19.1	24.3
Diluted earnings per share	Rs	19.1	24.3
Price to Cash Flow	x	6.9	6.5
TTM P/E ratio	x	8.3	11.0
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	1,882	1,976
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for INDIAN TONERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.7x during FY23, from 3.0x 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 deteriorated and stood at 62.7x during FY23, from 62.9x 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 14.0% during FY23, from 12.5% 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 18.4% during FY23, from 15.5% 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 improved and stood at 12.4% during FY23, from 11.0% 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	3.0	6.7
Debtors’ Days	Days	508	510
Interest coverage	x	62.9	62.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	12.4
Return on equity	%	12.5	14.0
Return on capital employed	%	15.5	18.4

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

INDIAN TONERS Share Price Performance

Over the last one year, INDIAN TONERS share price has moved up from Rs 161.5 to Rs 267.3, registering a gain of Rs 105.8 or around 65.5%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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