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SUNDARAM BRAKE 2022-23 Annual Report Analysis

Mon, 10 Jul

SUNDARAM BRAKE 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 BRAKE Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.7% in FY23 as against 1.9% in FY22.
• Depreciation charges increased by 1.9% and finance costs increased by 78.0% YoY, respectively.
• Other income declined by 13.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.0% in FY22 to 1.3% in FY23.

SUNDARAM BRAKE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,952	3,548	20.2%
Other income	Rs m	32	28	-13.5%
Total Revenues	Rs m	2,984	3,576	19.8%
Gross profit	Rs m	55	26	-53.3%
Depreciation	Rs m	60	61	1.9%
Interest	Rs m	26	46	78.0%
Profit before tax	Rs m	1	-54	NA
Tax	Rs m	1	-6	NA
Profit after tax	Rs m	1	-48	NA
Gross profit margin	%	1.9	0.7
Effective tax rate	%	41.4	11.4
Net profit margin	%	0.0	-1.3

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SUNDARAM BRAKE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 958 million in FY22, thereby witnessing an increase of 10.5%.
• Long-term debt stood at Rs 49 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 7% and stood at Rs 1 billion, while fixed assets rose 0% and stood at Rs 744 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 5%.

SUNDARAM BRAKE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	906	854	-5.8
Current Liabilities	Rs m	958	1,059	10.5
Long-term Debt	Rs m	0	49	0.0
Total Liabilities	Rs m	1,971	2,061	4.5
Current assets	Rs m	1,229	1,317	7.2
Fixed Assets	Rs m	743	744	0.2
Total Assets	Rs m	1,971	2,061	4.5

SUNDARAM BRAKE Cash Flow Statement Analysis

• SUNDARAM BRAKE 's cash flow from operating activities (CFO) during FY23 stood at Rs 11 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -57 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 46 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

SUNDARAM BRAKE 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	-21	11	-
Cash Flow from Investing Activities	Rs m	-76	-57	-
Cash Flow from Financing Activities	Rs m	97	46	-52.7%
Net Cash Flow	Rs m	0	0	-

Current Valuations for SUNDARAM BRAKE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.2, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 368.1, stands at -30.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 101.9 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	751.1	902.9
TTM Earnings per share	Rs	0.2	-12.2
Diluted earnings per share	Rs	0.2	-12.2
Price to Cash Flow	x	22.0	101.9
TTM P/E ratio	x	1,737.4	-30.3
Price / Book Value ratio	x	1.7	1.6
Market Cap	Rs m	1,586	1,352
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUNDARAM BRAKE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 -0.2x during FY23, from 1.1x 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 -5.6% during FY23, from 0.1% 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 -0.8% during FY23, from 3.0% 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 -0.1% during FY23, from 1.4% 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	1.3	1.2
Debtors’ Days	Days	797	710
Interest coverage	x	1.1	-0.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	1.4	-0.1
Return on equity	%	0.1	-5.6
Return on capital employed	%	3.0	-0.8

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

SUNDARAM BRAKE Share Price Performance

Over the last one year, SUNDARAM BRAKE share price has moved up from Rs 355.0 to Rs 368.1, registering a gain of Rs 13.1 or around 3.7%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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