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LAKSHMI ELEC 2022-23 Annual Report Analysis

Wed, 28 Jun

LAKSHMI ELEC 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.

LAKSHMI ELEC Income Statement Analysis

• Operating income during the year rose 40.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY23 as against 7.9% in FY22.
• Depreciation charges increased by 11.5% and finance costs increased by 26.2% YoY, respectively.
• Other income grew by 2.3% YoY.
• Net profit for the year grew by 28.7% YoY.
• Net profit margins during the year declined from 6.0% in FY22 to 5.5% in FY23.

LAKSHMI ELEC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,561	3,608	40.9%
Other income	Rs m	30	31	2.3%
Total Revenues	Rs m	2,591	3,639	40.4%
Gross profit	Rs m	203	271	33.8%
Depreciation	Rs m	22	25	11.5%
Interest	Rs m	4	5	26.2%
Profit before tax	Rs m	206	272	31.7%
Tax	Rs m	52	73	40.9%
Profit after tax	Rs m	155	199	28.7%
Gross profit margin	%	7.9	7.5
Effective tax rate	%	25.0	26.7
Net profit margin	%	6.0	5.5

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LAKSHMI ELEC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 702 million as compared to Rs 560 million in FY22, thereby witnessing an increase of 25.5%.
• Current assets rose 16% and stood at Rs 1 billion, while fixed assets rose 10% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 12%.

LAKSHMI ELEC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,130	2,320	8.9
Current Liabilities	Rs m	560	702	25.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,765	3,100	12.1
Current assets	Rs m	1,117	1,294	15.9
Fixed Assets	Rs m	1,648	1,806	9.6
Total Assets	Rs m	2,765	3,100	12.1

LAKSHMI ELEC Cash Flow Statement Analysis

• LAKSHMI ELEC's cash flow from operating activities (CFO) during FY23 stood at Rs 111 million, an improvement of 64.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -83 million, an improvement of 913.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -28 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

LAKSHMI ELEC 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	67	111	64.3%
Cash Flow from Investing Activities	Rs m	-8	-83	-
Cash Flow from Financing Activities	Rs m	-59	-28	-
Net Cash Flow	Rs m	0	0	-

Current Valuations for LAKSHMI ELEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.0, an improvement from the EPS of Rs 63.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,213.1, stands at 15.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	1,041.1	1,466.7
TTM Earnings per share	Rs	63.0	81.0
Diluted earnings per share	Rs	63.0	81.1
Price to Cash Flow	x	8.4	8.7
TTM P/E ratio	x	9.5	15.0
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	1,333	1,945
Dividends per share (Unadj.)	Rs	15.0	22.0

Ratio Analysis for LAKSHMI ELEC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x 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 51.4x during FY23, from 49.2x 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 improved and stood at 8.6% during FY23, from 7.3% 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 improved and stood at 12.0% during FY23, from 9.9% 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 6.6% during FY23, from 5.8% 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	1.8
Debtors’ Days	Days	951	896
Interest coverage	x	49.2	51.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.8	6.6
Return on equity	%	7.3	8.6
Return on capital employed	%	9.9	12.0

To see how LAKSHMI ELEC has performed over the last 5 years, please visit here.

LAKSHMI ELEC Share Price Performance

Over the last one year, LAKSHMI ELEC share price has moved up from Rs 587.2 to Rs 1,213.1, registering a gain of Rs 626.0 or around 106.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 39,585.3 (up 0.1%). Over the last one year it has moved up from 26,066.3 to 39,585.3, a gain of 13,519 points (up 51.9%).

Overall, the S&P BSE SENSEX is up 19.3% over the year.

(To know more, check out historical annual results for LAKSHMI ELEC and quarterly results for LAKSHMI ELEC)