SUNDARAM CLAYTON 2022-23 Annual Report Analysis

Sat, 1 Jul

SUNDARAM CLAYTON 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.

SUNDARAM CLAYTON Income Statement Analysis

• Operating income during the year rose 31.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY23 as against 11.6% in FY22.
• Depreciation charges increased by 16.7% and finance costs increased by 44.6% YoY, respectively.
• Other income grew by 265.6% YoY.
• Net profit for the year grew by 61.7% YoY.
• Net profit margins during the year grew from 3.2% in FY22 to 4.0% in FY23.

SUNDARAM CLAYTON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	255,907	335,642	31.2%
Other income	Rs m	345	1,261	265.6%
Total Revenues	Rs m	256,252	336,903	31.5%
Gross profit	Rs m	29,794	42,975	44.2%
Depreciation	Rs m	8,446	9,858	16.7%
Interest	Rs m	9,851	14,245	44.6%
Profit before tax	Rs m	11,842	20,133	70.0%
Tax	Rs m	3,597	6,802	89.1%
Profit after tax	Rs m	8,245	13,332	61.7%
Gross profit margin	%	11.6	12.8
Effective tax rate	%	30.4	33.8
Net profit margin	%	3.2	4.0

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SUNDARAM CLAYTON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 223 billion as compared to Rs 146 billion in FY22, thereby witnessing an increase of 53.0%.
• Long-term debt stood at Rs 99 billion as compared to Rs 77 billion during FY22, a growth of 27.4%.
• Current assets rose 24% and stood at Rs 198 billion, while fixed assets rose 33% and stood at Rs 193 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 390 billion as against Rs 303 billion during FY22, thereby witnessing a growth of 29%.

SUNDARAM CLAYTON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	50,792	32,410	-36.2
Current Liabilities	Rs m	145,971	223,337	53.0
Long-term Debt	Rs m	77,406	98,632	27.4
Total Liabilities	Rs m	303,340	390,438	28.7
Current assets	Rs m	158,825	197,647	24.4
Fixed Assets	Rs m	144,515	192,791	33.4
Total Assets	Rs m	303,340	390,438	28.7

SUNDARAM CLAYTON Cash Flow Statement Analysis

• SUNDARAM CLAYTON's cash flow from operating activities (CFO) during FY23 stood at Rs -41 billion, an improvement of 165.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -14 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 60 billion, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 billion from the Rs -1 billion net cash flows seen during FY22.

SUNDARAM CLAYTON 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	-15,481	-41,106	-
Cash Flow from Investing Activities	Rs m	-17,051	-14,393	-
Cash Flow from Financing Activities	Rs m	31,158	59,786	91.9%
Net Cash Flow	Rs m	-1,374	4,286	-

Current Valuations for SUNDARAM CLAYTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 659.0, an improvement from the EPS of Rs 407.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,656.7, stands at 6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	12,649.9	16,591.3
TTM Earnings per share	Rs	407.6	659.0
Diluted earnings per share	Rs	407.5	658.9
Price to Cash Flow	x	4.3	4.0
TTM P/E ratio	x	8.8	6.9
Price / Book Value ratio	x	1.6	2.9
Market Cap	Rs m	80,369	93,167
Dividends per share (Unadj.)	Rs	44.0	59.0

Ratio Analysis for SUNDARAM CLAYTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x 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 2.4x during FY23, from 2.2x 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 41.1% during FY23, from 16.2% 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 26.2% during FY23, from 16.9% 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 7.1% during FY23, from 6.0% 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	1.1	0.9
Debtors’ Days	Days	2	2
Interest coverage	x	2.2	2.4
Debt to equity ratio	x	1.5	3.0
Return on assets	%	6.0	7.1
Return on equity	%	16.2	41.1
Return on capital employed	%	16.9	26.2

To see how SUNDARAM CLAYTON has performed over the last 5 years, please visit here.

SUNDARAM CLAYTON Share Price Performance

Over the last one year, SUNDARAM CLAYTON share price has moved up from Rs 4,261.3 to Rs 4,656.7, registering a gain of Rs 395.4 or around 9.3%.

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for SUNDARAM CLAYTON and quarterly results for SUNDARAM CLAYTON)