LUX INDUSTRIES 2022-23 Annual Report Analysis

Tue, 7 Nov

LUX INDUSTRIES 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.

LUX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 55.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY23 as against 20.6% in FY22.
• Depreciation charges increased by 7.9% and finance costs increased by 53.0% YoY, respectively.
• Other income grew by 18.6% YoY.
• Net profit for the year declined by 59.3% YoY.
• Net profit margins during the year declined from 14.7% in FY22 to 5.8% in FY23.

LUX INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,959	23,787	3.6%
Other income	Rs m	171	202	18.6%
Total Revenues	Rs m	23,129	23,989	3.7%
Gross profit	Rs m	4,732	2,129	-55.0%
Depreciation	Rs m	183	198	7.9%
Interest	Rs m	160	245	53.0%
Profit before tax	Rs m	4,559	1,889	-58.6%
Tax	Rs m	1,179	514	-56.4%
Profit after tax	Rs m	3,381	1,375	-59.3%
Gross profit margin	%	20.6	9.0
Effective tax rate	%	25.9	27.2
Net profit margin	%	14.7	5.8

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LUX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 6 billion as compared to Rs 7 billion in FY22, thereby witnessing an decrease of -7.3%.
• Long-term debt stood at Rs 263 million as compared to Rs 172 million during FY22, a growth of 53.0%.
• Current assets rose 3% and stood at Rs 18 billion, while fixed assets rose 21% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 5%.

LUX INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,097	14,518	10.8
Current Liabilities	Rs m	6,638	6,155	-7.3
Long-term Debt	Rs m	172	263	53.0
Total Liabilities	Rs m	20,122	21,188	5.3
Current assets	Rs m	17,197	17,659	2.7
Fixed Assets	Rs m	2,925	3,529	20.7
Total Assets	Rs m	20,122	21,188	5.3

LUX INDUSTRIES Cash Flow Statement Analysis

• LUX INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -885 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -253 million from the Rs -322 million net cash flows seen during FY22.

LUX INDUSTRIES 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	-2,285	1,808	-
Cash Flow from Investing Activities	Rs m	438	-885	-
Cash Flow from Financing Activities	Rs m	1,524	-1,177	-
Net Cash Flow	Rs m	-322	-253	-

Current Valuations for LUX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.7, an decline from the EPS of Rs 112.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,365.0, stands at 40.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 35.9 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	763.5	791.0
TTM Earnings per share	Rs	112.4	45.7
Diluted earnings per share	Rs	112.4	45.7
Price to Cash Flow	x	18.5	35.9
TTM P/E ratio	x	19.5	40.0
Price / Book Value ratio	x	7.4	3.9
Market Cap	Rs m	96,478	56,475
Dividends per share (Unadj.)	Rs	12.0	5.0

Ratio Analysis for LUX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.6x 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 8.7x during FY23, from 29.5x 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 9.5% during FY23, from 25.8% 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 14.4% during FY23, from 35.6% 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 7.6% during FY23, from 17.6% 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	2.6	2.9
Debtors’ Days	Days	10	12
Interest coverage	x	29.5	8.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.6	7.6
Return on equity	%	25.8	9.5
Return on capital employed	%	35.6	14.4

To see how LUX INDUSTRIES has performed over the last 5 years, please visit here.

LUX INDUSTRIES Share Price Performance

Over the last one year, LUX INDUSTRIES share price has moved down from Rs 1,735.1 to Rs 1,365.0, registering a loss of Rs 370.1 or around 21.3%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for LUX INDUSTRIES and quarterly results for LUX INDUSTRIES)