SAMVARDHANA MOTHERSON 2022-23 Annual Report Analysis

Fri, 31 Mar

SAMVARDHANA MOTHERSON 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.

SAMVARDHANA MOTHERSON Income Statement Analysis

• Operating income during the year rose 23.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.7% in FY23 as against 7.3% in FY22.
• Depreciation charges increased by 6.0% and finance costs increased by 43.9% YoY, respectively.
• Other income declined by 0.3% YoY.
• Net profit for the year grew by 104.3% YoY.
• Net profit margins during the year grew from 1.3% in FY22 to 2.1% in FY23.

SAMVARDHANA MOTHERSON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	637,740	787,007	23.4%
Other income	Rs m	2,577	2,570	-0.3%
Total Revenues	Rs m	640,317	789,577	23.3%
Gross profit	Rs m	46,673	60,645	29.9%
Depreciation	Rs m	29,582	31,358	6.0%
Interest	Rs m	5,426	7,809	43.9%
Profit before tax	Rs m	14,242	24,048	68.9%
Tax	Rs m	6,069	7,352	21.1%
Profit after tax	Rs m	8,173	16,696	104.3%
Gross profit margin	%	7.3	7.7
Effective tax rate	%	42.6	30.6
Net profit margin	%	1.3	2.1

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SAMVARDHANA MOTHERSON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 275 billion as compared to Rs 223 billion in FY22, thereby witnessing an increase of 23.5%.
• Long-term debt down at Rs 66 billion as compared to Rs 85 billion during FY22, a fall of 22.1%.
• Current assets rose 18% and stood at Rs 268 billion, while fixed assets rose 4% and stood at Rs 337 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 605 billion as against Rs 551 billion during FY22, thereby witnessing a growth of 10%.

SAMVARDHANA MOTHERSON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	205,883	224,515	9.0
Current Liabilities	Rs m	222,853	275,154	23.5
Long-term Debt	Rs m	85,007	66,183	-22.1
Total Liabilities	Rs m	551,215	604,873	9.7
Current assets	Rs m	226,162	267,792	18.4
Fixed Assets	Rs m	325,053	337,081	3.7
Total Assets	Rs m	551,215	604,873	9.7

SAMVARDHANA MOTHERSON Cash Flow Statement Analysis

• SAMVARDHANA MOTHERSON's cash flow from operating activities (CFO) during FY23 stood at Rs 46 billion, an improvement of 88.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -22 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -27 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 billion from the Rs -11 billion net cash flows seen during FY22.

SAMVARDHANA MOTHERSON 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	24,627	46,430	88.5%
Cash Flow from Investing Activities	Rs m	-23,119	-22,448	-
Cash Flow from Financing Activities	Rs m	-12,174	-27,342	-
Net Cash Flow	Rs m	-10,591	-3,395	-

Current Valuations for SAMVARDHANA MOTHERSON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 67.1, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 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	141.2	116.1
TTM Earnings per share	Rs	1.8	2.5
Diluted earnings per share	Rs	1.2	2.5
Price to Cash Flow	x	16.7	11.2
TTM P/E ratio	x	78.6	26.5
Price / Book Value ratio	x	4.3	2.4
Market Cap	Rs m	886,695	539,765
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for SAMVARDHANA MOTHERSON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x 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 4.1x during FY23, from 3.6x 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 7.4% during FY23, from 4.0% 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 11.0% during FY23, from 6.8% 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 4.1% during FY23, from 2.5% 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	1.0	1.0
Debtors’ Days	Days	38	39
Interest coverage	x	3.6	4.1
Debt to equity ratio	x	0.4	0.3
Return on assets	%	2.5	4.1
Return on equity	%	4.0	7.4
Return on capital employed	%	6.8	11.0

To see how SAMVARDHANA MOTHERSON has performed over the last 5 years, please visit here.

SAMVARDHANA MOTHERSON Share Price Performance

Over the last one year, SAMVARDHANA MOTHERSON share price has moved down from Rs 92.9 to Rs 67.1, registering a loss of Rs 25.8 or around 27.8%.

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

(To know more, check out historical annual results for SAMVARDHANA MOTHERSON and quarterly results for SAMVARDHANA MOTHERSON)