SUPREME INDUSTRIES 2022-23 Annual Report Analysis

Wed, 31 May

SUPREME INDUSTRIES 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.

SUPREME INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.7% in FY23 as against 18.6% in FY22.
• Depreciation charges increased by 14.8% and finance costs increased by 55.7% YoY, respectively.
• Other income grew by 49.2% YoY.
• Net profit for the year declined by 10.6% YoY.
• Net profit margins during the year declined from 12.5% in FY22 to 9.4% in FY23.

SUPREME INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	77,728	92,016	18.4%
Other income	Rs m	200	298	49.2%
Total Revenues	Rs m	77,928	92,314	18.5%
Gross profit	Rs m	14,465	13,529	-6.5%
Depreciation	Rs m	2,295	2,634	14.8%
Interest	Rs m	52	80	55.7%
Profit before tax	Rs m	12,318	11,113	-9.8%
Tax	Rs m	2,633	2,460	-6.6%
Profit after tax	Rs m	9,685	8,653	-10.6%
Gross profit margin	%	18.6	14.7
Effective tax rate	%	21.4	22.1
Net profit margin	%	12.5	9.4

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SUPREME INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 13 billion in FY22, thereby witnessing an increase of 9.2%.
• Current assets rose 14% and stood at Rs 31 billion, while fixed assets rose 12% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 59 billion as against Rs 53 billion during FY22, thereby witnessing a growth of 13%.

SUPREME INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	38,444	44,021	14.5
Current Liabilities	Rs m	12,652	13,811	9.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52,607	59,394	12.9
Current assets	Rs m	27,401	31,239	14.0
Fixed Assets	Rs m	25,206	28,155	11.7
Total Assets	Rs m	52,607	59,394	12.9

SUPREME INDUSTRIES Cash Flow Statement Analysis

• SUPREME INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 89.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion 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 2 billion from the Rs -2 billion net cash flows seen during FY22.

SUPREME INDUSTRIES 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	4,703	8,903	89.3%
Cash Flow from Investing Activities	Rs m	-4,035	-3,493	-
Cash Flow from Financing Activities	Rs m	-3,103	-3,266	-
Net Cash Flow	Rs m	-2,426	2,191	-

Current Valuations for SUPREME INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 68.1, an decline from the EPS of Rs 76.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,767.0, stands at 49.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 25.2 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	611.9	724.4
TTM Earnings per share	Rs	76.2	68.1
Diluted earnings per share	Rs	76.2	68.1
Price to Cash Flow	x	21.7	25.2
TTM P/E ratio	x	34.0	49.4
Price / Book Value ratio	x	7.5	6.5
Market Cap	Rs m	288,656	284,861
Dividends per share (Unadj.)	Rs	24.0	26.0

Ratio Analysis for SUPREME INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 2.2x 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 139.6x during FY23, from 240.2x 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 19.7% during FY23, from 25.2% 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 declined and down at 25.4% during FY23, from 32.2% 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 14.7% during FY23, from 18.5% 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	2.2	2.3
Debtors’ Days	Days	2	2
Interest coverage	x	240.2	139.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.5	14.7
Return on equity	%	25.2	19.7
Return on capital employed	%	32.2	25.4

To see how SUPREME INDUSTRIES has performed over the last 5 years, please visit here.

SUPREME INDUSTRIES Share Price Performance

Over the last one year, SUPREME INDUSTRIES share price has moved up from Rs 1,836.5 to Rs 2,767.0, registering a gain of Rs 930.6 or around 50.7%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for SUPREME INDUSTRIES and quarterly results for SUPREME INDUSTRIES)