LUMAX AUTO TECHNO 2022-23 Annual Report Analysis

Mon, 14 Aug

LUMAX AUTO TECHNO 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.

LUMAX AUTO TECHNO Income Statement Analysis

• Operating income during the year rose 22.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY23 as against 9.9% in FY22.
• Depreciation charges increased by 32.4% and finance costs increased by 74.7% YoY, respectively.
• Other income grew by 86.3% YoY.
• Net profit for the year grew by 36.1% YoY.
• Net profit margins during the year grew from 5.4% in FY22 to 6.0% in FY23.

LUMAX AUTO TECHNO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,079	18,475	22.5%
Other income	Rs m	128	239	86.3%
Total Revenues	Rs m	15,207	18,713	23.1%
Gross profit	Rs m	1,492	1,919	28.7%
Depreciation	Rs m	395	523	32.4%
Interest	Rs m	96	167	74.7%
Profit before tax	Rs m	1,129	1,468	30.0%
Tax	Rs m	310	353	13.8%
Profit after tax	Rs m	819	1,115	36.1%
Gross profit margin	%	9.9	10.4
Effective tax rate	%	27.5	24.1
Net profit margin	%	5.4	6.0

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LUMAX AUTO TECHNO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 60.9%.
• Long-term debt stood at Rs 4 billion as compared to Rs 102 million during FY22, a growth of 3758.6%.
• Current assets rose 56% and stood at Rs 10 billion, while fixed assets rose 134% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 91%.

LUMAX AUTO TECHNO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,439	6,616	21.6
Current Liabilities	Rs m	4,698	7,558	60.9
Long-term Debt	Rs m	102	3,947	3,758.6
Total Liabilities	Rs m	11,388	21,790	91.3
Current assets	Rs m	6,296	9,853	56.5
Fixed Assets	Rs m	5,092	11,937	134.4
Total Assets	Rs m	11,388	21,790	91.3

LUMAX AUTO TECHNO Cash Flow Statement Analysis

• LUMAX AUTO TECHNO's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 56.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 628.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 3,678% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 262 million from the Rs 318 million net cash flows seen during FY22.

LUMAX AUTO TECHNO 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	874	1,372	56.9%
Cash Flow from Investing Activities	Rs m	-654	-4,758	-
Cash Flow from Financing Activities	Rs m	97	3,648	3,678.0%
Net Cash Flow	Rs m	318	262	-17.4%

Current Valuations for LUMAX AUTO TECHNO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.4, an improvement from the EPS of Rs 12.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.7, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	221.2	271.0
TTM Earnings per share	Rs	12.0	16.4
Diluted earnings per share	Rs	12.0	16.4
Price to Cash Flow	x	9.4	9.4
TTM P/E ratio	x	13.8	22.0
Price / Book Value ratio	x	2.1	2.3
Market Cap	Rs m	11,503	15,450
Dividends per share (Unadj.)	Rs	3.5	4.5

Ratio Analysis for LUMAX AUTO TECHNO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.3x 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 deteriorated and stood at 9.8x during FY23, from 12.8x 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 improved and stood at 16.8% during FY23, from 15.1% 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 declined and down at 15.5% during FY23, from 22.1% 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 5.9% during FY23, from 8.0% 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	1.3	1.3
Debtors’ Days	Days	645	911
Interest coverage	x	12.8	9.8
Debt to equity ratio	x	0.0	0.6
Return on assets	%	8.0	5.9
Return on equity	%	15.1	16.8
Return on capital employed	%	22.1	15.5

To see how LUMAX AUTO TECHNO has performed over the last 5 years, please visit here.

LUMAX AUTO TECHNO Share Price Performance

Over the last one year, LUMAX AUTO TECHNO share price has moved up from Rs 231.6 to Rs 372.7, registering a gain of Rs 141.1 or around 60.9%.

Overall, the S&P BSE SENSEX is up 10.5% over the year.

(To know more, check out historical annual results for LUMAX AUTO TECHNO and quarterly results for LUMAX AUTO TECHNO)