MOTILAL OSWAL 2022-23 Annual Report Analysis

Tue, 20 Jun

MOTILAL OSWAL 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.

MOTILAL OSWAL Income Statement Analysis

• Operating income during the year fell 2.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 44.9% in FY23 as against 49.3% in FY22.
• Depreciation charges increased by 21.0% and finance costs increased by 25.5% YoY, respectively.
• Other income declined by 3.3% YoY.
• Net profit for the year declined by 28.8% YoY.
• Net profit margins during the year declined from 30.5% in FY22 to 22.3% in FY23.

MOTILAL OSWAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	42,968	41,771	-2.8%
Other income	Rs m	220	212	-3.3%
Total Revenues	Rs m	43,188	41,984	-2.8%
Gross profit	Rs m	21,169	18,752	-11.4%
Depreciation	Rs m	483	584	21.0%
Interest	Rs m	4,748	5,958	25.5%
Profit before tax	Rs m	16,158	12,423	-23.1%
Tax	Rs m	3,051	3,094	1.4%
Profit after tax	Rs m	13,107	9,328	-28.8%
Gross profit margin	%	49.3	44.9
Effective tax rate	%	18.9	24.9
Net profit margin	%	30.5	22.3

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

MOTILAL OSWAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 147 billion as compared to Rs 96 billion in FY22, thereby witnessing an increase of 54.0%.
• Long-term debt stood at Rs 18 billion as compared to Rs 15 billion during FY22, a growth of 21.2%.
• Current assets rose 49% and stood at Rs 176 billion, while fixed assets rose 6% and stood at Rs 53 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 229 billion as against Rs 169 billion during FY22, thereby witnessing a growth of 36%.

MOTILAL OSWAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	56,032	61,578	9.9
Current Liabilities	Rs m	95,611	147,279	54.0
Long-term Debt	Rs m	14,705	17,829	21.2
Total Liabilities	Rs m	168,598	229,493	36.1
Current assets	Rs m	118,596	176,338	48.7
Fixed Assets	Rs m	50,002	53,155	6.3
Total Assets	Rs m	168,598	229,493	36.1

MOTILAL OSWAL Cash Flow Statement Analysis

• MOTILAL OSWAL's cash flow from operating activities (CFO) during FY23 stood at Rs -31 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 38 billion, an improvement of 1,241% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 billion from the Rs 8 billion net cash flows seen during FY22.

MOTILAL OSWAL 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	10,107	-30,579	-
Cash Flow from Investing Activities	Rs m	-4,474	-2,875	-
Cash Flow from Financing Activities	Rs m	2,822	37,842	1,241.0%
Net Cash Flow	Rs m	8,455	4,388	-48.1%

Current Valuations for MOTILAL OSWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.0, an decline from the EPS of Rs 87.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 687.6, stands at 10.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 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	288.3	282.3
TTM Earnings per share	Rs	87.9	63.0
Diluted earnings per share	Rs	88.6	63.1
Price to Cash Flow	x	9.5	11.3
TTM P/E ratio	x	9.8	10.9
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	130,896	111,756
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for MOTILAL OSWAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.2x 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 3.1x during FY23, from 4.4x 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 declined and down at 15.1% during FY23, from 23.4% 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 23.1% during FY23, from 29.6% 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 6.7% during FY23, from 10.6% 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	1.2	1.2
Debtors’ Days	Days	852	899
Interest coverage	x	4.4	3.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	10.6	6.7
Return on equity	%	23.4	15.1
Return on capital employed	%	29.6	23.1

To see how MOTILAL OSWAL has performed over the last 5 years, please visit here.

MOTILAL OSWAL Share Price Performance

Over the last one year, MOTILAL OSWAL share price has moved down from Rs 751.9 to Rs 687.6, registering a loss of Rs 64.3 or around 8.6%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for MOTILAL OSWAL and quarterly results for MOTILAL OSWAL)