TALBROS AUTO 2022-23 Annual Report Analysis

Thu, 21 Sep

TALBROS AUTO 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 AUTO Income Statement Analysis

• Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY23 as against 14.0% in FY22.
• Depreciation charges increased by 3.7% and finance costs decreased by 3.5% YoY, respectively.
• Other income declined by 23.0% YoY.
• Net profit for the year grew by 23.8% YoY.
• Net profit margins during the year grew from 7.8% in FY22 to 8.6% in FY23.

TALBROS AUTO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,772	6,472	12.1%
Other income	Rs m	104	80	-23.0%
Total Revenues	Rs m	5,876	6,552	11.5%
Gross profit	Rs m	806	974	20.8%
Depreciation	Rs m	229	237	3.7%
Interest	Rs m	118	114	-3.5%
Profit before tax	Rs m	564	703	24.7%
Tax	Rs m	115	147	28.2%
Profit after tax	Rs m	449	556	23.8%
Gross profit margin	%	14.0	15.0
Effective tax rate	%	20.4	20.9
Net profit margin	%	7.8	8.6

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TALBROS AUTO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 7.3%.
• Long-term debt down at Rs 61 million as compared to Rs 76 million during FY22, a fall of 20.1%.
• Current assets rose 14% and stood at Rs 3 billion, while fixed assets rose 12% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 13%.

TALBROS AUTO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,019	3,675	21.7
Current Liabilities	Rs m	2,465	2,646	7.3
Long-term Debt	Rs m	76	61	-20.1
Total Liabilities	Rs m	5,932	6,710	13.1
Current assets	Rs m	3,026	3,442	13.8
Fixed Assets	Rs m	2,906	3,267	12.4
Total Assets	Rs m	5,932	6,710	13.1

TALBROS AUTO Cash Flow Statement Analysis

• TALBROS AUTO's cash flow from operating activities (CFO) during FY23 stood at Rs 566 million, an improvement of 9.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -370 million, an improvement of 46.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -163 million, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 32 million from the Rs -7 million net cash flows seen during FY22.

TALBROS AUTO 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	517	566	9.5%
Cash Flow from Investing Activities	Rs m	-253	-370	-
Cash Flow from Financing Activities	Rs m	-270	-163	-
Net Cash Flow	Rs m	-7	32	-

Current Valuations for TALBROS AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.0, an improvement from the EPS of Rs 36.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 930.2, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	467.4	524.0
TTM Earnings per share	Rs	36.3	45.0
Diluted earnings per share	Rs	36.4	45.0
Price to Cash Flow	x	8.3	7.6
TTM P/E ratio	x	15.2	23.9
Price / Book Value ratio	x	1.7	1.6
Market Cap	Rs m	5,234	5,989
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for TALBROS AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x 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 improved and stood at 7.2x during FY23, from 5.8x 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 15.1% during FY23, from 14.9% 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 declined and down at 21.9% during FY23, from 22.0% 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 improved and stood at 10.0% during FY23, from 9.5% 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	1.2	1.3
Debtors’ Days	Days	958	950
Interest coverage	x	5.8	7.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	10.0
Return on equity	%	14.9	15.1
Return on capital employed	%	22.0	21.9

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

TALBROS AUTO Share Price Performance

Over the last one year, TALBROS AUTO share price has moved up from Rs 478.6 to Rs 930.2, registering a gain of Rs 451.7 or around 94.4%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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