SML ISUZU 2022-23 Annual Report Analysis

Thu, 24 Aug

SML ISUZU 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.

SML ISUZU Income Statement Analysis

• Operating income during the year rose 97.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.5% in FY23 as against 4.5% in FY22.
• Depreciation charges decreased by 2.5% and finance costs increased by 16.4% YoY, respectively.
• Other income declined by 47.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 10.8% in FY22 to 1.1% in FY23.

SML ISUZU Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,242	18,216	97.1%
Other income	Rs m	60	31	-47.8%
Total Revenues	Rs m	9,301	18,247	96.2%
Gross profit	Rs m	-412	816	NA
Depreciation	Rs m	435	424	-2.5%
Interest	Rs m	215	250	16.4%
Profit before tax	Rs m	-1,003	173	NA
Tax	Rs m	-5	-26	NA
Profit after tax	Rs m	-998	198	NA
Gross profit margin	%	-4.5	4.5
Effective tax rate	%	0.5	-14.8
Net profit margin	%	-10.8	1.1

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SML ISUZU Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 15.4%.
• Long-term debt stood at Rs 165 million as compared to Rs 90 million during FY22, a growth of 82.9%.
• Current assets rose 28% and stood at Rs 5 billion, while fixed assets rose 0% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 15%.

SML ISUZU Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,615	1,779	10.2
Current Liabilities	Rs m	5,934	6,850	15.4
Long-term Debt	Rs m	90	165	82.9
Total Liabilities	Rs m	8,008	9,191	14.8
Current assets	Rs m	4,205	5,382	28.0
Fixed Assets	Rs m	3,803	3,809	0.2
Total Assets	Rs m	8,008	9,191	14.8

SML ISUZU Cash Flow Statement Analysis

• SML ISUZU's cash flow from operating activities (CFO) during FY23 stood at Rs 901 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -421 million, an improvement of 504.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -552 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -72 million from the Rs -82 million net cash flows seen during FY22.

SML ISUZU 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	-186	901	-
Cash Flow from Investing Activities	Rs m	-70	-421	-
Cash Flow from Financing Activities	Rs m	174	-552	-
Net Cash Flow	Rs m	-82	-72	-

Current Valuations for SML ISUZU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an improvement from the EPS of Rs -68.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,367.9, stands at 40.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	638.7	1,258.9
TTM Earnings per share	Rs	-68.9	13.7
Diluted earnings per share	Rs	-68.9	13.7
Price to Cash Flow	x	-12.7	16.1
TTM P/E ratio	x	-7.2	40.2
Price / Book Value ratio	x	5.7	5.6
Market Cap	Rs m	9,210	10,006
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SML ISUZU

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.7x 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 1.7x during FY23, from -3.7x 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 11.1% during FY23, from -61.8% 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 21.8% during FY23, from -46.2% 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 improved and stood at 4.9% during FY23, from -9.8% 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	0.7	0.8
Debtors’ Days	Days	312	152
Interest coverage	x	-3.7	1.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-9.8	4.9
Return on equity	%	-61.8	11.1
Return on capital employed	%	-46.2	21.8

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

SML ISUZU Share Price Performance

Over the last one year, SML ISUZU share price has moved up from Rs 706.9 to Rs 1,367.9, registering a gain of Rs 661.0 or around 93.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 35,091.6 (down 0.3%). Over the last one year it has moved up from 29,629.5 to 35,091.6, a gain of 5,462 points (up 18.4%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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