PRECISION CAMSHAFTS 2022-23 Annual Report Analysis

Wed, 5 Jul

PRECISION CAMSHAFTS 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.

PRECISION CAMSHAFTS Income Statement Analysis

• Operating income during the year fell 30.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY23 as against 15.8% in FY22.
• Depreciation charges decreased by 60.5% and finance costs decreased by 49.0% YoY, respectively.
• Other income grew by 76.9% YoY.
• Net profit for the year grew by 32.4% YoY.
• Net profit margins during the year grew from 5.1% in FY22 to 9.7% in FY23.

PRECISION CAMSHAFTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,950	6,263	-30.0%
Other income	Rs m	189	335	76.9%
Total Revenues	Rs m	9,139	6,598	-27.8%
Gross profit	Rs m	1,413	900	-36.3%
Depreciation	Rs m	920	363	-60.5%
Interest	Rs m	73	37	-49.0%
Profit before tax	Rs m	609	834	36.9%
Tax	Rs m	149	225	50.5%
Profit after tax	Rs m	460	609	32.4%
Gross profit margin	%	15.8	14.4
Effective tax rate	%	24.5	26.9
Net profit margin	%	5.1	9.7

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PRECISION CAMSHAFTS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -50.2%.
• Current assets fell 30% and stood at Rs 5 billion, while fixed assets rose 28% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 11 billion during FY22, thereby witnessing a fall of 7%.

PRECISION CAMSHAFTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,817	8,205	20.4
Current Liabilities	Rs m	3,132	1,561	-50.2
Long-term Debt	Rs m	316	0	-100.0
Total Liabilities	Rs m	10,571	9,840	-6.9
Current assets	Rs m	6,413	4,514	-29.6
Fixed Assets	Rs m	4,158	5,325	28.1
Total Assets	Rs m	10,571	9,840	-6.9

PRECISION CAMSHAFTS Cash Flow Statement Analysis

• PRECISION CAMSHAFTS's cash flow from operating activities (CFO) during FY23 stood at Rs 674 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -512 million, an improvement of 25.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -172 million, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs -134 million net cash flows seen during FY22.

PRECISION CAMSHAFTS 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	875	674	-23.0%
Cash Flow from Investing Activities	Rs m	-408	-512	-
Cash Flow from Financing Activities	Rs m	-614	-172	-
Net Cash Flow	Rs m	-134	-9	-

Current Valuations for PRECISION CAMSHAFTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an improvement from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.5, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	94.2	65.9
TTM Earnings per share	Rs	4.8	6.4
Diluted earnings per share	Rs	4.8	6.4
Price to Cash Flow	x	9.2	11.7
TTM P/E ratio	x	27.5	41.2
Price / Book Value ratio	x	1.6	1.4
Market Cap	Rs m	10,864	11,401
Dividends per share (Unadj.)	Rs	1.1	1.0

Ratio Analysis for PRECISION CAMSHAFTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.0x 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 23.4x during FY23, from 9.4x 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 improved and stood at 7.4% during FY23, from 6.8% 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 improved and stood at 10.6% during FY23, from 9.6% 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 improved and stood at 6.6% during FY23, from 5.0% 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	2.0	2.9
Debtors’ Days	Days	669	842
Interest coverage	x	9.4	23.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	6.6
Return on equity	%	6.8	7.4
Return on capital employed	%	9.6	10.6

To see how PRECISION CAMSHAFTS has performed over the last 5 years, please visit here.

PRECISION CAMSHAFTS Share Price Performance

Over the last one year, PRECISION CAMSHAFTS share price has moved up from Rs 100.1 to Rs 186.5, registering a gain of Rs 86.4 or around 86.3%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for PRECISION CAMSHAFTS and quarterly results for PRECISION CAMSHAFTS)