LUMAX IND 2022-23 Annual Report Analysis

Mon, 7 Aug

LUMAX 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.

LUMAX IND Income Statement Analysis

• Operating income during the year rose 32.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 95.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY23 as against 7.1% in FY22.
• Depreciation charges increased by 25.5% and finance costs increased by 37.4% YoY, respectively.
• Other income grew by 9.7% YoY.
• Net profit for the year grew by 153.1% YoY.
• Net profit margins during the year grew from 2.3% in FY22 to 4.4% in FY23.

LUMAX IND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,513	23,195	32.4%
Other income	Rs m	134	147	9.7%
Total Revenues	Rs m	17,647	23,342	32.3%
Gross profit	Rs m	1,248	2,442	95.6%
Depreciation	Rs m	637	799	25.5%
Interest	Rs m	217	299	37.4%
Profit before tax	Rs m	528	1,491	182.4%
Tax	Rs m	121	461	280.8%
Profit after tax	Rs m	407	1,031	153.1%
Gross profit margin	%	7.1	10.5
Effective tax rate	%	22.9	30.9
Net profit margin	%	2.3	4.4

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LUMAX IND Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 21.0%.
• Long-term debt stood at Rs 610 million as compared to Rs 583 million during FY22, a growth of 4.5%.
• Current assets rose 37% and stood at Rs 8 billion, while fixed assets rose 10% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 21%.

LUMAX IND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,917	5,836	18.7
Current Liabilities	Rs m	8,844	10,698	21.0
Long-term Debt	Rs m	583	610	4.5
Total Liabilities	Rs m	15,464	18,657	20.6
Current assets	Rs m	6,115	8,366	36.8
Fixed Assets	Rs m	9,349	10,291	10.1
Total Assets	Rs m	15,464	18,657	20.6

LUMAX IND Cash Flow Statement Analysis

• LUMAX IND's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -901 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -260 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -84 million from the Rs 127 million net cash flows seen during FY22.

LUMAX 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	1,080	1,077	-0.3%
Cash Flow from Investing Activities	Rs m	-1,295	-901	-
Cash Flow from Financing Activities	Rs m	342	-260	-
Net Cash Flow	Rs m	127	-84	-

Current Valuations for LUMAX IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 110.2, an improvement from the EPS of Rs 43.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,070.6, stands at 31.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	1,873.1	2,480.8
TTM Earnings per share	Rs	43.6	110.2
Diluted earnings per share	Rs	43.6	110.3
Price to Cash Flow	x	7.9	7.3
TTM P/E ratio	x	24.3	31.5
Price / Book Value ratio	x	2.5	2.3
Market Cap	Rs m	12,503	13,381
Dividends per share (Unadj.)	Rs	13.5	27.0

Ratio Analysis for LUMAX IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.7x 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 6.0x during FY23, from 3.4x 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 17.7% during FY23, from 8.3% 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 27.8% during FY23, from 13.6% 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 improved and stood at 7.1% during FY23, from 4.0% 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	0.7	0.8
Debtors’ Days	Days	484	482
Interest coverage	x	3.4	6.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.0	7.1
Return on equity	%	8.3	17.7
Return on capital employed	%	13.6	27.8

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

LUMAX IND Share Price Performance

Over the last one year, LUMAX IND share price has moved up from Rs 1,432.0 to Rs 2,070.6, registering a gain of Rs 638.6 or around 44.6%.

Overall, the S&P BSE SENSEX is up 13.1% over the year.

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