TALBROS ENG. 2022-23 Annual Report Analysis

Mon, 12 Feb

TALBROS ENG. 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.

TALBROS ENG. Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY23 as against 12.8% in FY22.
• Depreciation charges increased by 7.8% and finance costs increased by 10.2% YoY, respectively.
• Other income grew by 130.4% YoY.
• Net profit for the year grew by 26.4% YoY.
• Net profit margins during the year declined from 6.3% in FY22 to 6.3% in FY23.

TALBROS ENG. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,511	4,442	26.5%
Other income	Rs m	11	26	130.4%
Total Revenues	Rs m	3,523	4,468	26.8%
Gross profit	Rs m	451	534	18.5%
Depreciation	Rs m	85	92	7.8%
Interest	Rs m	85	93	10.2%
Profit before tax	Rs m	292	375	28.3%
Tax	Rs m	71	96	34.3%
Profit after tax	Rs m	221	279	26.4%
Gross profit margin	%	12.8	12.0
Effective tax rate	%	24.4	25.5
Net profit margin	%	6.3	6.3

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TALBROS ENG. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 2.1%.
• Long-term debt stood at Rs 498 million as compared to Rs 484 million during FY22, a growth of 2.8%.
• Current assets rose 6% and stood at Rs 1 billion, while fixed assets rose 19% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 12%.

TALBROS ENG. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	926	1,195	29.1
Current Liabilities	Rs m	1,091	1,115	2.1
Long-term Debt	Rs m	484	498	2.8
Total Liabilities	Rs m	2,536	2,844	12.1
Current assets	Rs m	1,368	1,452	6.2
Fixed Assets	Rs m	1,168	1,391	19.1
Total Assets	Rs m	2,536	2,844	12.1

TALBROS ENG. Cash Flow Statement Analysis

• TALBROS ENG.'s cash flow from operating activities (CFO) during FY23 stood at Rs 310 million, an improvement of 235.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -449 million, an improvement of 140.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 139 million, an improvement of 144% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs -37 million net cash flows seen during FY22.

TALBROS ENG. 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	93	310	235.4%
Cash Flow from Investing Activities	Rs m	-186	-449	-
Cash Flow from Financing Activities	Rs m	57	139	144.2%
Net Cash Flow	Rs m	-37	1	-

Current Valuations for TALBROS ENG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.0, an improvement from the EPS of Rs 43.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 475.5, stands at 8.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	691.2	874.3
TTM Earnings per share	Rs	43.5	55.0
Diluted earnings per share	Rs	43.5	55.0
Price to Cash Flow	x	6.3	6.4
TTM P/E ratio	x	8.7	8.6
Price / Book Value ratio	x	1.8	2.0
Market Cap	Rs m	1,683	2,381
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for TALBROS ENG.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 improved and stood at 5.0x during FY23, from 4.5x 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 23.4% during FY23, from 23.9% 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 27.7% during FY23, from 26.7% 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 13.1% during FY23, from 12.0% 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	1.3
Debtors’ Days	Days	738	525
Interest coverage	x	4.5	5.0
Debt to equity ratio	x	0.5	0.4
Return on assets	%	12.0	13.1
Return on equity	%	23.9	23.4
Return on capital employed	%	26.7	27.7

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

TALBROS ENG. Share Price Performance

Over the last one year, TALBROS ENG. share price has moved up from Rs 377.7 to Rs 475.5, registering a gain of Rs 97.9 or around 25.9%.

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

(To know more, check out historical annual results for TALBROS ENG. and quarterly results for TALBROS ENG.)