CERA SANITARY 2022-23 Annual Report Analysis

Sun, 11 Jun

CERA SANITARY 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.

CERA SANITARY Income Statement Analysis

• Operating income during the year rose 24.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.0% in FY23 as against 15.4% in FY22.
• Depreciation charges increased by 0.6% and finance costs increased by 14.5% YoY, respectively.
• Other income grew by 50.4% YoY.
• Net profit for the year grew by 38.0% YoY.
• Net profit margins during the year grew from 10.6% in FY22 to 11.7% in FY23.

CERA SANITARY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,458	18,035	24.7%
Other income	Rs m	236	356	50.4%
Total Revenues	Rs m	14,695	18,391	25.2%
Gross profit	Rs m	2,230	2,880	29.1%
Depreciation	Rs m	324	326	0.6%
Interest	Rs m	53	60	14.5%
Profit before tax	Rs m	2,090	2,849	36.3%
Tax	Rs m	560	738	31.8%
Profit after tax	Rs m	1,529	2,111	38.0%
Gross profit margin	%	15.4	16.0
Effective tax rate	%	26.8	25.9
Net profit margin	%	10.6	11.7

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CERA SANITARY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 4.2%.
• Long-term debt down at Rs 42 million as compared to Rs 611 million during FY22, a fall of 93.2%.
• Current assets rose 16% and stood at Rs 13 billion, while fixed assets fell 11% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 8%.

CERA SANITARY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,152	11,726	15.5
Current Liabilities	Rs m	3,776	3,935	4.2
Long-term Debt	Rs m	611	42	-93.2
Total Liabilities	Rs m	15,494	16,766	8.2
Current assets	Rs m	10,951	12,739	16.3
Fixed Assets	Rs m	4,543	4,028	-11.3
Total Assets	Rs m	15,494	16,766	8.2

CERA SANITARY Cash Flow Statement Analysis

• CERA SANITARY's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 82.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 46.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -596 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -26 million from the Rs 65 million net cash flows seen during FY22.

CERA SANITARY 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	890	1,624	82.5%
Cash Flow from Investing Activities	Rs m	-719	-1,054	-
Cash Flow from Financing Activities	Rs m	-106	-596	-
Net Cash Flow	Rs m	65	-26	-

Current Valuations for CERA SANITARY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 162.2, an improvement from the EPS of Rs 117.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,891.2, stands at 48.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.8 times, while the price to sales ratio stands at 5.7 times.
• The company's price to cash flow (P/CF) ratio stood at 27.5 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	1,111.3	1,386.2
TTM Earnings per share	Rs	117.6	162.2
Diluted earnings per share	Rs	117.6	162.3
Price to Cash Flow	x	34.9	27.5
TTM P/E ratio	x	42.3	48.6
Price / Book Value ratio	x	6.5	5.7
Market Cap	Rs m	65,553	67,030
Dividends per share (Unadj.)	Rs	35.0	50.0

Ratio Analysis for CERA SANITARY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY23, from 2.9x 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 48.1x during FY23, from 40.6x 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 18.0% during FY23, from 15.1% 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 24.7% during FY23, from 19.9% 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 12.9% during FY23, from 10.2% 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	2.9	3.2
Debtors’ Days	Days	421	383
Interest coverage	x	40.6	48.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.2	12.9
Return on equity	%	15.1	18.0
Return on capital employed	%	19.9	24.7

To see how CERA SANITARY has performed over the last 5 years, please visit here.

CERA SANITARY Share Price Performance

Over the last one year, CERA SANITARY share price has moved up from Rs 4,109.7 to Rs 7,891.2, registering a gain of Rs 3,781.5 or around 92.0%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for CERA SANITARY and quarterly results for CERA SANITARY)