TGV SRAAC 2022-23 Annual Report Analysis

Tue, 20 Feb

TGV SRAAC 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.

TGV SRAAC Income Statement Analysis

• Operating income during the year rose 52.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 76.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY23 as against 20.1% in FY22.
• Depreciation charges increased by 7.3% and finance costs decreased by 13.4% YoY, respectively.
• Other income declined by 4.5% YoY.
• Net profit for the year grew by 169.1% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 15.6% in FY23.

TGV SRAAC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,253	23,257	52.5%
Other income	Rs m	70	67	-4.5%
Total Revenues	Rs m	15,323	23,324	52.2%
Gross profit	Rs m	3,061	5,395	76.3%
Depreciation	Rs m	686	736	7.3%
Interest	Rs m	351	304	-13.4%
Profit before tax	Rs m	2,094	4,421	111.2%
Tax	Rs m	748	801	7.0%
Profit after tax	Rs m	1,345	3,621	169.1%
Gross profit margin	%	20.1	23.2
Effective tax rate	%	35.7	18.1
Net profit margin	%	8.8	15.6

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TGV SRAAC Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -2.0%.
• Long-term debt down at Rs 706 million as compared to Rs 2 billion during FY22, a fall of 61.0%.
• Current assets rose 17% and stood at Rs 7 billion, while fixed assets rose 6% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 9%.

TGV SRAAC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,435	10,466	40.8
Current Liabilities	Rs m	4,947	4,846	-2.0
Long-term Debt	Rs m	1,812	706	-61.0
Total Liabilities	Rs m	16,316	17,864	9.5
Current assets	Rs m	5,594	6,525	16.6
Fixed Assets	Rs m	10,722	11,339	5.8
Total Assets	Rs m	16,316	17,864	9.5

TGV SRAAC Cash Flow Statement Analysis

• TGV SRAAC 's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 155.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 14.6% 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 52 million from the Rs -176 million net cash flows seen during FY22.

TGV SRAAC 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	1,678	4,292	155.7%
Cash Flow from Investing Activities	Rs m	-1,471	-1,685	-
Cash Flow from Financing Activities	Rs m	-383	-2,554	-
Net Cash Flow	Rs m	-176	52	-

Current Valuations for TGV SRAAC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.8, an improvement from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 97.7, stands at 2.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 3.0 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	142.4	217.2
TTM Earnings per share	Rs	12.6	33.8
Diluted earnings per share	Rs	12.6	33.8
Price to Cash Flow	x	4.1	3.0
TTM P/E ratio	x	6.2	2.9
Price / Book Value ratio	x	0.7	1.3
Market Cap	Rs m	5,561	13,105
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TGV SRAAC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.1x 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 15.5x during FY23, from 7.0x 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 34.6% during FY23, from 18.1% 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 42.3% during FY23, from 26.4% 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 22.0% during FY23, from 10.4% 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	1.1	1.3
Debtors’ Days	Days	556	356
Interest coverage	x	7.0	15.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	10.4	22.0
Return on equity	%	18.1	34.6
Return on capital employed	%	26.4	42.3

To see how TGV SRAAC has performed over the last 5 years, please visit here.

TGV SRAAC Share Price Performance

Over the last one year, TGV SRAAC share price has moved up from Rs 78.5 to Rs 97.7, registering a gain of Rs 19.2 or around 24.5%.

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

(To know more, check out historical annual results for TGV SRAAC and quarterly results for TGV SRAAC )