TRIBHOVANDAS BHIMJI 2022-23 Annual Report Analysis

Mon, 21 Aug

TRIBHOVANDAS BHIMJI 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.

TRIBHOVANDAS BHIMJI Income Statement Analysis

• Operating income during the year rose 29.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 8.7% and finance costs increased by 28.8% YoY, respectively.
• Other income declined by 32.6% YoY.
• Net profit for the year grew by 99.1% YoY.
• Net profit margins during the year grew from 1.1% in FY22 to 1.7% in FY23.

TRIBHOVANDAS BHIMJI Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,438	23,936	29.8%
Other income	Rs m	78	52	-32.6%
Total Revenues	Rs m	18,516	23,989	29.6%
Gross profit	Rs m	815	1,239	51.9%
Depreciation	Rs m	225	245	8.7%
Interest	Rs m	409	526	28.8%
Profit before tax	Rs m	259	520	100.6%
Tax	Rs m	58	119	105.6%
Profit after tax	Rs m	202	402	99.1%
Gross profit margin	%	4.4	5.2
Effective tax rate	%	22.2	22.8
Net profit margin	%	1.1	1.7

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TRIBHOVANDAS BHIMJI Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -2.6%.
• Long-term debt stood at Rs 6 million as compared to Rs 1 million during FY22, a growth of 517.2%.
• Current assets rose 1% and stood at Rs 13 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 2%.

TRIBHOVANDAS BHIMJI Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,276	5,604	6.2
Current Liabilities	Rs m	8,609	8,383	-2.6
Long-term Debt	Rs m	1	6	517.2
Total Liabilities	Rs m	14,981	15,302	2.1
Current assets	Rs m	12,865	13,000	1.0
Fixed Assets	Rs m	2,116	2,302	8.8
Total Assets	Rs m	14,981	15,302	2.1

TRIBHOVANDAS BHIMJI Cash Flow Statement Analysis

• TRIBHOVANDAS BHIMJI's cash flow from operating activities (CFO) during FY23 stood at Rs 932 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -66 million, an improvement of 216.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -867 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs 25 million net cash flows seen during FY22.

TRIBHOVANDAS BHIMJI 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	-662	932	-
Cash Flow from Investing Activities	Rs m	-21	-66	-
Cash Flow from Financing Activities	Rs m	708	-867	-
Net Cash Flow	Rs m	25	-2	-

Current Valuations for TRIBHOVANDAS BHIMJI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.0, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.4, stands at 15.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	276.3	358.7
TTM Earnings per share	Rs	3.0	6.0
Diluted earnings per share	Rs	3.0	6.0
Price to Cash Flow	x	10.6	7.0
TTM P/E ratio	x	22.5	15.8
Price / Book Value ratio	x	1.0	0.8
Market Cap	Rs m	5,420	4,554
Dividends per share (Unadj.)	Rs	1.0	1.8

Ratio Analysis for TRIBHOVANDAS BHIMJI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.5x 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 2.0x during FY23, from 1.6x 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 7.2% during FY23, from 3.8% 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 18.7% during FY23, from 12.7% 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 6.1% during FY23, from 4.1% 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	1.5	1.6
Debtors’ Days	Days	3	2
Interest coverage	x	1.6	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.1	6.1
Return on equity	%	3.8	7.2
Return on capital employed	%	12.7	18.7

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

TRIBHOVANDAS BHIMJI Share Price Performance

Over the last one year, TRIBHOVANDAS BHIMJI share price has moved up from Rs 73.6 to Rs 116.4, registering a gain of Rs 42.8 or around 58.1%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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