LLOYDS STEEL IND. 2022-23 Annual Report Analysis

Mon, 3 Jul

LLOYDS STEEL IND. 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.

LLOYDS STEEL IND. Income Statement Analysis

• Operating income during the year rose 524.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 955.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.9% in FY23 as against 9.4% in FY22.
• Depreciation charges increased by 78.2% and finance costs increased by 286.8% YoY, respectively.
• Other income declined by 40.6% YoY.
• Net profit for the year grew by 519.2% YoY.
• Net profit margins during the year declined from 11.9% in FY22 to 11.8% in FY23.

LLOYDS STEEL IND. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	501	3,126	524.0%
Other income	Rs m	98	58	-40.6%
Total Revenues	Rs m	598	3,184	432.0%
Gross profit	Rs m	47	497	955.5%
Depreciation	Rs m	13	24	78.2%
Interest	Rs m	10	39	286.8%
Profit before tax	Rs m	121	492	306.5%
Tax	Rs m	62	124	101.2%
Profit after tax	Rs m	59	368	519.2%
Gross profit margin	%	9.4	15.9
Effective tax rate	%	50.9	25.2
Net profit margin	%	11.9	11.8

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LLOYDS STEEL IND. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 321 million in FY22, thereby witnessing an increase of 418.8%.
• Long-term debt down at Rs 4 million as compared to Rs 189 million during FY22, a fall of 97.7%.
• Current assets rose 87% and stood at Rs 3 billion, while fixed assets rose 137% and stood at Rs 611 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 94%.

LLOYDS STEEL IND. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,194	1,863	56.1
Current Liabilities	Rs m	321	1,665	418.8
Long-term Debt	Rs m	189	4	-97.7
Total Liabilities	Rs m	1,905	3,698	94.1
Current assets	Rs m	1,647	3,087	87.4
Fixed Assets	Rs m	258	611	136.8
Total Assets	Rs m	1,905	3,698	94.1

LLOYDS STEEL IND. Cash Flow Statement Analysis

• LLOYDS STEEL IND.'s cash flow from operating activities (CFO) during FY23 stood at Rs -31 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -537 million, an improvement of 349.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 456 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -111 million from the Rs 71 million net cash flows seen during FY22.

LLOYDS STEEL IND. 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	-171	-31	-
Cash Flow from Investing Activities	Rs m	-119	-537	-
Cash Flow from Financing Activities	Rs m	361	456	26.4%
Net Cash Flow	Rs m	71	-111	-

Current Valuations for LLOYDS STEEL IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.2, stands at 69.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.8 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at 42.2 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	0.6	3.2
TTM Earnings per share	Rs	0.1	0.4
Diluted earnings per share	Rs	0.1	0.3
Price to Cash Flow	x	205.3	42.2
TTM P/E ratio	x	251.4	69.8
Price / Book Value ratio	x	11.3	8.9
Market Cap	Rs m	13,480	16,561
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for LLOYDS STEEL IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 5.1x 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 13.5x during FY23, from 12.9x 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 19.8% during FY23, from 5.0% 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 28.5% during FY23, from 9.5% 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 11.0% during FY23, from 3.7% 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	5.1	1.9
Debtors’ Days	Days	716	340
Interest coverage	x	12.9	13.5
Debt to equity ratio	x	0.2	0.0
Return on assets	%	3.7	11.0
Return on equity	%	5.0	19.8
Return on capital employed	%	9.5	28.5

To see how LLOYDS STEEL IND. has performed over the last 5 years, please visit here.

LLOYDS STEEL IND. Share Price Performance

Over the last one year, LLOYDS STEEL IND. share price has moved up from Rs 12.0 to Rs 24.2, registering a gain of Rs 12.2 or around 101.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,716.6 (down 0.0%). Over the last one year it has moved up from 26,027.1 to 40,716.6, a gain of 14,690 points (up 56.4%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for LLOYDS STEEL IND. and quarterly results for LLOYDS STEEL IND.)