LAKSHMI MACHINE 2022-23 Annual Report Analysis

Wed, 5 Jul

LAKSHMI MACHINE 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 MACHINE Income Statement Analysis

• Operating income during the year rose 48.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 95.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.5% in FY23 as against 7.2% in FY22.
• Depreciation charges increased by 30.2% and finance costs decreased by 100.0% YoY, respectively.
• Other income grew by 116.3% YoY.
• Net profit for the year grew by 112.1% YoY.
• Net profit margins during the year grew from 5.7% in FY22 to 8.1% in FY23.

LAKSHMI MACHINE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	31,710	47,191	48.8%
Other income	Rs m	683	1,478	116.3%
Total Revenues	Rs m	32,393	48,670	50.2%
Gross profit	Rs m	2,298	4,491	95.4%
Depreciation	Rs m	597	777	30.2%
Interest	Rs m	1	0	-100.0%
Profit before tax	Rs m	2,383	5,192	117.9%
Tax	Rs m	573	1,352	136.1%
Profit after tax	Rs m	1,811	3,840	112.1%
Gross profit margin	%	7.2	9.5
Effective tax rate	%	24.0	26.0
Net profit margin	%	5.7	8.1

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LAKSHMI MACHINE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 15 billion as compared to Rs 15 billion in FY22, thereby witnessing an increase of 1.7%.
• Current assets rose 14% and stood at Rs 24 billion, while fixed assets rose 1% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 42 billion as against Rs 39 billion during FY22, thereby witnessing a growth of 8%.

LAKSHMI MACHINE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,902	23,385	17.5
Current Liabilities	Rs m	14,545	14,789	1.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38,946	42,001	7.8
Current assets	Rs m	20,776	23,621	13.7
Fixed Assets	Rs m	18,170	18,380	1.2
Total Assets	Rs m	38,946	42,001	7.8

LAKSHMI MACHINE Cash Flow Statement Analysis

• LAKSHMI MACHINE's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -430 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 789 million from the Rs 260 million net cash flows seen during FY22.

LAKSHMI MACHINE 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	4,848	3,641	-24.9%
Cash Flow from Investing Activities	Rs m	-4,478	-2,422	-
Cash Flow from Financing Activities	Rs m	-110	-430	-
Net Cash Flow	Rs m	260	789	203.6%

Current Valuations for LAKSHMI MACHINE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 359.6, an improvement from the EPS of Rs 169.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13,674.3, stands at 38.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 25.7 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	2,969.1	4,418.7
TTM Earnings per share	Rs	169.5	359.6
Diluted earnings per share	Rs	169.5	359.5
Price to Cash Flow	x	42.7	25.7
TTM P/E ratio	x	56.8	38.0
Price / Book Value ratio	x	4.7	5.1
Market Cap	Rs m	94,245	118,897
Dividends per share (Unadj.)	Rs	40.0	98.5

Ratio Analysis for LAKSHMI MACHINE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.4x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 16.4% during FY23, from 9.1% 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 22.2% during FY23, from 12.0% 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 9.1% during FY23, from 4.7% 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	1.4	1.6
Debtors’ Days	Days	371	180
Interest coverage	x	2,804.8	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.7	9.1
Return on equity	%	9.1	16.4
Return on capital employed	%	12.0	22.2

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

LAKSHMI MACHINE Share Price Performance

Over the last one year, LAKSHMI MACHINE share price has moved up from Rs 9,175.8 to Rs 13,674.3, registering a gain of Rs 4,498.6 or around 49.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,743.8 (up 0.5%). Over the last one year it has moved up from 26,241.6 to 40,743.8, a gain of 14,502 points (up 55.3%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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