LA OPALA RG 2022-23 Annual Report Analysis

Tue, 26 Sep

LA OPALA RG 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.

LA OPALA RG Income Statement Analysis

• Operating income during the year rose 40.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.6% in FY23 as against 35.7% in FY22.
• Depreciation charges increased by 59.3% and finance costs increased by 84.0% YoY, respectively.
• Other income grew by 49.2% YoY.
• Net profit for the year grew by 40.8% YoY.
• Net profit margins during the year grew from 27.1% in FY22 to 27.2% in FY23.

LA OPALA RG Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,227	4,523	40.2%
Other income	Rs m	192	286	49.2%
Total Revenues	Rs m	3,418	4,809	40.7%
Gross profit	Rs m	1,151	1,654	43.7%
Depreciation	Rs m	137	218	59.3%
Interest	Rs m	41	75	84.0%
Profit before tax	Rs m	1,165	1,647	41.4%
Tax	Rs m	291	417	43.2%
Profit after tax	Rs m	874	1,230	40.8%
Gross profit margin	%	35.7	36.6
Effective tax rate	%	25.0	25.3
Net profit margin	%	27.1	27.2

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LA OPALA RG Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 630 million as compared to Rs 599 million in FY22, thereby witnessing an increase of 5.1%.
• Long-term debt down at Rs 83 million as compared to Rs 125 million during FY22, a fall of 33.3%.
• Current assets rose 26% and stood at Rs 5 billion, while fixed assets fell 14% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 6%.

LA OPALA RG Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,405	7,749	4.7
Current Liabilities	Rs m	599	630	5.1
Long-term Debt	Rs m	125	83	-33.3
Total Liabilities	Rs m	8,464	8,969	6.0
Current assets	Rs m	4,270	5,365	25.6
Fixed Assets	Rs m	4,194	3,605	-14.1
Total Assets	Rs m	8,464	8,969	6.0

LA OPALA RG Cash Flow Statement Analysis

• LA OPALA RG's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 10.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -689 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -404 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -1 million net cash flows seen during FY22.

LA OPALA RG 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	994	1,093	10.0%
Cash Flow from Investing Activities	Rs m	-750	-689	-
Cash Flow from Financing Activities	Rs m	-245	-404	-
Net Cash Flow	Rs m	-1	0	-

Current Valuations for LA OPALA RG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an improvement from the EPS of Rs 7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 437.7, stands at 36.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 10.7 times.
• The company's price to cash flow (P/CF) ratio stood at 25.9 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	29.1	40.7
TTM Earnings per share	Rs	7.9	11.1
Diluted earnings per share	Rs	7.9	11.1
Price to Cash Flow	x	38.0	25.9
TTM P/E ratio	x	43.9	36.9
Price / Book Value ratio	x	5.2	4.8
Market Cap	Rs m	38,190	37,465
Dividends per share (Unadj.)	Rs	2.3	5.0

Ratio Analysis for LA OPALA RG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.5x during FY23, from 7.1x 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 deteriorated and stood at 23.0x during FY23, from 29.6x 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 15.9% during FY23, from 11.8% 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 improved and stood at 22.0% during FY23, from 16.0% 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 14.5% during FY23, from 10.8% 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	7.1	8.5
Debtors’ Days	Days	367	292
Interest coverage	x	29.6	23.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	14.5
Return on equity	%	11.8	15.9
Return on capital employed	%	16.0	22.0

To see how LA OPALA RG has performed over the last 5 years, please visit here.

LA OPALA RG Share Price Performance

Over the last one year, LA OPALA RG share price has moved up from Rs 333.2 to Rs 437.7, registering a gain of Rs 104.5 or around 31.4%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for LA OPALA RG and quarterly results for LA OPALA RG)