LAKSHMI MILLS 2022-23 Annual Report Analysis

Fri, 10 Nov

LAKSHMI MILLS 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 MILLS Income Statement Analysis

• Operating income during the year fell 30.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 89.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.1% in FY23 as against 14.2% in FY22.
• Depreciation charges increased by 14.7% and finance costs decreased by 30.3% YoY, respectively.
• Other income grew by 74.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 6.9% in FY22 to 2.1% in FY23.

LAKSHMI MILLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,467	2,399	-30.8%
Other income	Rs m	26	45	74.9%
Total Revenues	Rs m	3,493	2,445	-30.0%
Gross profit	Rs m	492	50	-89.8%
Depreciation	Rs m	72	82	14.7%
Interest	Rs m	116	81	-30.3%
Profit before tax	Rs m	329	-68	NA
Tax	Rs m	89	-18	NA
Profit after tax	Rs m	241	-50	NA
Gross profit margin	%	14.2	2.1
Effective tax rate	%	26.9	26.1
Net profit margin	%	6.9	-2.1

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LAKSHMI MILLS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 954 million as compared to Rs 994 million in FY22, thereby witnessing an decrease of -3.9%.
• Long-term debt stood at Rs 472 million as compared to Rs 194 million during FY22, a growth of 143.1%.
• Current assets fell 31% and stood at Rs 656 million, while fixed assets rose 11% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 5%.

LAKSHMI MILLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,313	6,410	1.5
Current Liabilities	Rs m	994	954	-3.9
Long-term Debt	Rs m	194	472	143.1
Total Liabilities	Rs m	7,793	8,215	5.4
Current assets	Rs m	958	656	-31.5
Fixed Assets	Rs m	6,835	7,559	10.6
Total Assets	Rs m	7,793	8,215	5.4

LAKSHMI MILLS Cash Flow Statement Analysis

• LAKSHMI MILLS's cash flow from operating activities (CFO) during FY23 stood at Rs 377 million, an improvement of 35.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -565 million, an improvement of 313.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 187 million, an improvement of 232% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs 0 million net cash flows seen during FY22.

LAKSHMI MILLS 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	278	377	35.5%
Cash Flow from Investing Activities	Rs m	-137	-565	-
Cash Flow from Financing Activities	Rs m	-142	187	-
Net Cash Flow	Rs m	0	-1	-

Current Valuations for LAKSHMI MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -71.6, an decline from the EPS of Rs 343.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,095.0, stands at -17.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 89.8 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	4,953.1	3,427.3
TTM Earnings per share	Rs	343.8	-71.6
Diluted earnings per share	Rs	345.9	-72.1
Price to Cash Flow	x	8.8	89.8
TTM P/E ratio	x	11.4	-17.2
Price / Book Value ratio	x	0.4	0.5
Market Cap	Rs m	2,647	2,888
Dividends per share (Unadj.)	Rs	25.0	9.0

Ratio Analysis for LAKSHMI MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY23, from 1.0x 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 0.2x during FY23, from 3.8x 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 -0.8% during FY23, from 3.8% 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 0.2% during FY23, from 6.8% 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 0.4% during FY23, from 4.6% 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	1.0	0.7
Debtors’ Days	Days	341	196
Interest coverage	x	3.8	0.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.6	0.4
Return on equity	%	3.8	-0.8
Return on capital employed	%	6.8	0.2

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

LAKSHMI MILLS Share Price Performance

Over the last one year, LAKSHMI MILLS share price has moved down from Rs 4,645.0 to Rs 4,095.0, registering a loss of Rs 550.0 or around 11.8%.

Overall, the S&P BSE SENSEX is up 5.9% over the year.

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