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MOTHERSON SUMI WIRING 2022-23 Annual Report Analysis

Wed, 16 Aug

MOTHERSON SUMI WIRING 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.

MOTHERSON SUMI WIRING Income Statement Analysis

• Operating income during the year rose 25.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.1% in FY23 as against 11.8% in FY22.
• Depreciation charges increased by 17.3% and finance costs decreased by 2.5% YoY, respectively.
• Other income declined by 25.7% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year declined from 7.3% in FY22 to 6.9% in FY23.

MOTHERSON SUMI WIRING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	56,350	70,574	25.2%
Other income	Rs m	300	223	-25.7%
Total Revenues	Rs m	56,650	70,797	25.0%
Gross profit	Rs m	6,649	7,814	17.5%
Depreciation	Rs m	1,055	1,237	17.3%
Interest	Rs m	285	278	-2.5%
Profit before tax	Rs m	5,609	6,522	16.3%
Tax	Rs m	1,502	1,652	10.0%
Profit after tax	Rs m	4,107	4,870	18.6%
Gross profit margin	%	11.8	11.1
Effective tax rate	%	26.8	25.3
Net profit margin	%	7.3	6.9

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MOTHERSON SUMI WIRING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 13 billion as compared to Rs 12 billion in FY22, thereby witnessing an increase of 7.8%.
• Long-term debt stood at Rs 78 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 8% and stood at Rs 21 billion, while fixed assets rose 31% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 25 billion during FY22, thereby witnessing a growth of 13%.

MOTHERSON SUMI WIRING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,146	13,305	19.4
Current Liabilities	Rs m	11,951	12,879	7.8
Long-term Debt	Rs m	0	78	0.0
Total Liabilities	Rs m	25,214	28,566	13.3
Current assets	Rs m	19,727	21,365	8.3
Fixed Assets	Rs m	5,487	7,201	31.2
Total Assets	Rs m	25,214	28,566	13.3

MOTHERSON SUMI WIRING Cash Flow Statement Analysis

• MOTHERSON SUMI WIRING's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 92.2% 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 -3 billion from the Rs 3 billion net cash flows seen during FY22.

MOTHERSON SUMI WIRING 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	5,007	2,236	-55.3%
Cash Flow from Investing Activities	Rs m	-1,008	-1,937	-
Cash Flow from Financing Activities	Rs m	-1,439	-2,871	-
Net Cash Flow	Rs m	2,560	-2,572	-

Current Valuations for MOTHERSON SUMI WIRING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.4, stands at 54.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.7 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 40.9 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	17.8	16.0
TTM Earnings per share	Rs	1.3	1.1
Diluted earnings per share	Rs	0.9	1.1
Price to Cash Flow	x	39.4	40.9
TTM P/E ratio	x	49.6	54.3
Price / Book Value ratio	x	17.8	18.8
Market Cap	Rs m	198,871	249,966
Dividends per share (Unadj.)	Rs	0.9	0.7

Ratio Analysis for MOTHERSON SUMI WIRING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.7x 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 24.5x during FY23, from 20.7x 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 36.6% during FY23, from 36.8% 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 50.8% during FY23, from 52.9% 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 18.0% during FY23, from 17.4% 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	1.7	1.7
Debtors’ Days	Days	43	41
Interest coverage	x	20.7	24.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	18.0
Return on equity	%	36.8	36.6
Return on capital employed	%	52.9	50.8

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

MOTHERSON SUMI WIRING Share Price Performance

Over the last one year, MOTHERSON SUMI WIRING share price has moved up from Rs 57.3 to Rs 59.4, registering a gain of Rs 2.2 or around 3.8%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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