SUBEX 2022-23 Annual Report Analysis

Thu, 14 Sep

SUBEX 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.

SUBEX Income Statement Analysis

• Operating income during the year fell 16.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 11.3% in FY23 as against 10.4% in FY22.
• Depreciation charges increased by 41.6% and finance costs increased by 23.6% YoY, respectively.
• Other income declined by 17.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 6.3% in FY22 to 18.4% in FY23.

SUBEX Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,334	2,787	-16.4%
Other income	Rs m	117	97	-17.0%
Total Revenues	Rs m	3,451	2,884	-16.4%
Gross profit	Rs m	346	-314	NA
Depreciation	Rs m	99	140	41.6%
Interest	Rs m	27	34	23.6%
Profit before tax	Rs m	337	-391	NA
Tax	Rs m	127	122	-4.3%
Profit after tax	Rs m	210	-512	NA
Gross profit margin	%	10.4	-11.3
Effective tax rate	%	37.7	-31.1
Net profit margin	%	6.3	-18.4

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SUBEX Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 858 million as compared to Rs 760 million in FY22, thereby witnessing an increase of 12.9%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 7 billion during FY22, thereby witnessing a fall of 2%.

SUBEX Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,610	5,174	-7.8
Current Liabilities	Rs m	760	858	12.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,397	7,244	-2.1
Current assets	Rs m	2,966	2,615	-11.8
Fixed Assets	Rs m	4,431	4,629	4.5
Total Assets	Rs m	7,397	7,244	-2.1

SUBEX Cash Flow Statement Analysis

• SUBEX's cash flow from operating activities (CFO) during FY23 stood at Rs 93 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -378 million, an improvement of 7.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -65 million, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -330 million from the Rs -576 million net cash flows seen during FY22.

SUBEX 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	-81	93	-
Cash Flow from Investing Activities	Rs m	-353	-378	-
Cash Flow from Financing Activities	Rs m	-153	-65	-
Net Cash Flow	Rs m	-576	-330	-

Current Valuations for SUBEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.9, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 34.6, stands at -25.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at -50.5 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	5.9	5.0
TTM Earnings per share	Rs	0.4	-0.9
Diluted earnings per share	Rs	0.4	-0.9
Price to Cash Flow	x	58.4	-50.5
TTM P/E ratio	x	85.9	-25.6
Price / Book Value ratio	x	5.3	3.6
Market Cap	Rs m	29,463	18,813
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUBEX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY23, from 3.9x 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 -10.7x during FY23, from 13.4x 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 -9.9% during FY23, from 3.7% 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 -6.9% during FY23, from 6.5% 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 -6.6% during FY23, from 3.2% 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	3.9	3.0
Debtors’ Days	Days	1,060	1,184
Interest coverage	x	13.4	-10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.2	-6.6
Return on equity	%	3.7	-9.9
Return on capital employed	%	6.5	-6.9

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

SUBEX Share Price Performance

Over the last one year, SUBEX share price has moved down from Rs 36.3 to Rs 34.6, registering a loss of Rs 1.7 or around 4.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 33,226.4 (up 0.7%). Over the last one year it has moved up from 28,738.9 to 33,226.4, a gain of 4,488 points (up 15.6%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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