SUPRAJIT ENGINEERING 2022-23 Annual Report Analysis

Fri, 31 Mar

SUPRAJIT ENGINEERING 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.

SUPRAJIT ENGINEERING Income Statement Analysis

• Operating income during the year rose 49.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.4% in FY23 as against 14.8% in FY22.
• Depreciation charges increased by 63.1% and finance costs increased by 144.9% YoY, respectively.
• Other income grew by 5.4% YoY.
• Net profit for the year declined by 12.1% YoY.
• Net profit margins during the year declined from 9.4% in FY22 to 5.5% in FY23.

SUPRAJIT ENGINEERING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,405	27,524	49.5%
Other income	Rs m	366	386	5.4%
Total Revenues	Rs m	18,771	27,910	48.7%
Gross profit	Rs m	2,716	3,126	15.1%
Depreciation	Rs m	585	955	63.1%
Interest	Rs m	145	356	144.9%
Profit before tax	Rs m	2,352	2,202	-6.3%
Tax	Rs m	621	681	9.7%
Profit after tax	Rs m	1,731	1,521	-12.1%
Gross profit margin	%	14.8	11.4
Effective tax rate	%	26.4	30.9
Net profit margin	%	9.4	5.5

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SUPRAJIT ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 47.1%.
• Long-term debt stood at Rs 3 billion as compared to Rs 138 million during FY22, a growth of 1813.4%.
• Current assets rose 40% and stood at Rs 16 billion, while fixed assets rose 38% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 39%.

SUPRAJIT ENGINEERING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,746	12,130	12.9
Current Liabilities	Rs m	5,542	8,154	47.1
Long-term Debt	Rs m	138	2,648	1,813.4
Total Liabilities	Rs m	17,385	24,220	39.3
Current assets	Rs m	11,176	15,622	39.8
Fixed Assets	Rs m	6,209	8,598	38.5
Total Assets	Rs m	17,385	24,220	39.3

SUPRAJIT ENGINEERING Cash Flow Statement Analysis

• SUPRAJIT ENGINEERING's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 31.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 300% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -860 million from the Rs 1 billion net cash flows seen during FY22.

SUPRAJIT ENGINEERING 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	1,816	2,391	31.7%
Cash Flow from Investing Activities	Rs m	365	-5,793	-
Cash Flow from Financing Activities	Rs m	-1,115	2,232	-
Net Cash Flow	Rs m	1,090	-860	-

Current Valuations for SUPRAJIT ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an decline from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 345.0, stands at 31.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.5 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	133.0	198.9
TTM Earnings per share	Rs	12.5	11.0
Diluted earnings per share	Rs	12.5	11.0
Price to Cash Flow	x	20.4	19.5
TTM P/E ratio	x	27.4	31.4
Price / Book Value ratio	x	4.6	4.0
Market Cap	Rs m	49,687	48,154
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for SUPRAJIT ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x 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 deteriorated and stood at 7.2x during FY23, from 17.2x 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 declined and down at 12.5% during FY23, from 16.1% 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 declined and down at 17.3% during FY23, from 22.9% 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 declined and down at 7.7% during FY23, from 10.8% 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	1.9
Debtors’ Days	Days	59	61
Interest coverage	x	17.2	7.2
Debt to equity ratio	x	0.0	0.2
Return on assets	%	10.8	7.7
Return on equity	%	16.1	12.5
Return on capital employed	%	22.9	17.3

To see how SUPRAJIT ENGINEERING has performed over the last 5 years, please visit here.

SUPRAJIT ENGINEERING Share Price Performance

Over the last one year, SUPRAJIT ENGINEERING share price has moved up from Rs 342.0 to Rs 345.0, registering a gain of Rs 3.0 or around 0.9%.

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

(To know more, check out historical annual results for SUPRAJIT ENGINEERING and quarterly results for SUPRAJIT ENGINEERING)