LINC PEN & PLASTICS 2022-23 Annual Report Analysis

Fri, 31 Mar

LINC PEN & PLASTICS 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.

LINC PEN & PLASTICS Income Statement Analysis

• Operating income during the year rose 37.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 185.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 10.1% and finance costs decreased by 13.2% YoY, respectively.
• Other income grew by 20.9% YoY.
• Net profit for the year grew by 359.8% YoY.
• Net profit margins during the year grew from 2.3% in FY22 to 7.7% in FY23.

LINC PEN & PLASTICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,550	4,868	37.1%
Other income	Rs m	29	35	20.9%
Total Revenues	Rs m	3,578	4,902	37.0%
Gross profit	Rs m	215	614	185.0%
Depreciation	Rs m	128	141	10.1%
Interest	Rs m	7	6	-13.2%
Profit before tax	Rs m	109	501	361.5%
Tax	Rs m	27	127	366.6%
Profit after tax	Rs m	81	374	359.8%
Gross profit margin	%	6.1	12.6
Effective tax rate	%	25.1	25.3
Net profit margin	%	2.3	7.7

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LINC PEN & PLASTICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 675 million as compared to Rs 532 million in FY22, thereby witnessing an increase of 26.9%.
• Current assets rose 34% and stood at Rs 2 billion, while fixed assets rose 9% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 22%.

LINC PEN & PLASTICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,429	1,772	24.1
Current Liabilities	Rs m	532	675	26.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,270	2,759	21.5
Current assets	Rs m	1,137	1,526	34.2
Fixed Assets	Rs m	1,133	1,233	8.8
Total Assets	Rs m	2,270	2,759	21.5

LINC PEN & PLASTICS Cash Flow Statement Analysis

• LINC PEN & PLASTICS's cash flow from operating activities (CFO) during FY23 stood at Rs 434 million, an improvement of 112.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -290 million, an improvement of 106.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -68 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 75 million from the Rs -1 million net cash flows seen during FY22.

LINC PEN & PLASTICS 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	204	434	112.2%
Cash Flow from Investing Activities	Rs m	-141	-290	-
Cash Flow from Financing Activities	Rs m	-64	-68	-
Net Cash Flow	Rs m	-1	75	-

Current Valuations for LINC PEN & PLASTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 532.9, stands at 21.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 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	238.7	327.3
TTM Earnings per share	Rs	5.5	25.1
Diluted earnings per share	Rs	5.5	25.1
Price to Cash Flow	x	20.1	11.3
TTM P/E ratio	x	51.7	21.2
Price / Book Value ratio	x	2.5	3.3
Market Cap	Rs m	3,544	5,813
Dividends per share (Unadj.)	Rs	1.8	5.0

Ratio Analysis for LINC PEN & PLASTICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 2.1x 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 79.8x during FY23, from 15.8x 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 21.1% during FY23, from 5.7% 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 28.6% during FY23, from 8.1% 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 improved and stood at 13.8% during FY23, from 3.9% 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	2.1	2.3
Debtors’ Days	Days	351	290
Interest coverage	x	15.8	79.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	13.8
Return on equity	%	5.7	21.1
Return on capital employed	%	8.1	28.6

To see how LINC PEN & PLASTICS has performed over the last 5 years, please visit here.

LINC PEN & PLASTICS Share Price Performance

Over the last one year, LINC PEN & PLASTICS share price has moved up from Rs 282.6 to Rs 532.9, registering a gain of Rs 250.4 or around 88.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for LINC PEN & PLASTICS and quarterly results for LINC PEN & PLASTICS)