UNO MINDA 2022-23 Annual Report Analysis

Fri, 31 Mar

UNO MINDA 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.

UNO MINDA Income Statement Analysis

• Operating income during the year rose 35.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY23 as against 11.4% in FY22.
• Depreciation charges increased by 9.7% and finance costs increased by 11.6% YoY, respectively.
• Other income declined by 22.3% YoY.
• Net profit for the year grew by 69.7% YoY.
• Net profit margins during the year grew from 5.0% in FY22 to 6.2% in FY23.

UNO MINDA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	83,130	112,365	35.2%
Other income	Rs m	629	489	-22.3%
Total Revenues	Rs m	83,759	112,854	34.7%
Gross profit	Rs m	9,506	13,419	41.2%
Depreciation	Rs m	3,918	4,299	9.7%
Interest	Rs m	623	695	11.6%
Profit before tax	Rs m	5,594	8,914	59.3%
Tax	Rs m	1,468	1,911	30.2%
Profit after tax	Rs m	4,126	7,002	69.7%
Gross profit margin	%	11.4	11.9
Effective tax rate	%	26.2	21.4
Net profit margin	%	5.0	6.2

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UNO MINDA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 30 billion as compared to Rs 23 billion in FY22, thereby witnessing an increase of 26.0%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY22, a growth of 54.9%.
• Current assets rose 21% and stood at Rs 36 billion, while fixed assets rose 22% and stood at Rs 47 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 83 billion as against Rs 68 billion during FY22, thereby witnessing a growth of 22%.

UNO MINDA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	34,108	41,402	21.4
Current Liabilities	Rs m	23,422	29,522	26.0
Long-term Debt	Rs m	3,747	5,806	54.9
Total Liabilities	Rs m	67,979	82,671	21.6
Current assets	Rs m	29,559	35,658	20.6
Fixed Assets	Rs m	38,420	46,992	22.3
Total Assets	Rs m	67,979	82,671	21.6

UNO MINDA Cash Flow Statement Analysis

• UNO MINDA's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 108.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 69.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -809 million from the Rs -33 million net cash flows seen during FY22.

UNO MINDA 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	3,829	7,982	108.5%
Cash Flow from Investing Activities	Rs m	-6,987	-11,857	-
Cash Flow from Financing Activities	Rs m	3,110	3,010	-3.2%
Net Cash Flow	Rs m	-33	-809	-

Current Valuations for UNO MINDA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an decline from the EPS of Rs 14.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 481.1, stands at 45.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 25.1 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	291.1	196.1
TTM Earnings per share	Rs	14.4	12.2
Diluted earnings per share	Rs	7.2	12.2
Price to Cash Flow	x	33.2	25.1
TTM P/E ratio	x	76.9	45.9
Price / Book Value ratio	x	3.6	6.8
Market Cap	Rs m	122,817	283,348
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for UNO MINDA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 13.8x during FY23, from 10.0x 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 16.9% during FY23, from 12.1% 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 20.4% during FY23, from 16.4% 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 9.3% during FY23, from 7.0% 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	1.3	1.2
Debtors’ Days	Days	6	6
Interest coverage	x	10.0	13.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.0	9.3
Return on equity	%	12.1	16.9
Return on capital employed	%	16.4	20.4

To see how UNO MINDA has performed over the last 5 years, please visit here.

UNO MINDA Share Price Performance

Over the last one year, UNO MINDA share price has moved up from Rs 466.2 to Rs 481.1, registering a gain of Rs 14.8 or around 3.2%.

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

(To know more, check out historical annual results for UNO MINDA and quarterly results for UNO MINDA)