TCI INDUSTRIES 2022-23 Annual Report Analysis

Wed, 28 Jun

TCI INDUSTRIES 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.

TCI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 34.7% 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 down at 36.5% in FY23 as against 56.1% in FY22.
• Depreciation charges increased by 12.6% and finance costs increased by 19.7% YoY, respectively.
• Other income grew by 257.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 66.5% in FY22 to 34.5% in FY23.

TCI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14	19	34.7%
Other income	Rs m	1	3	257.0%
Total Revenues	Rs m	15	22	47.4%
Gross profit	Rs m	-8	-7	NA
Depreciation	Rs m	2	2	12.6%
Interest	Rs m	1	1	19.7%
Profit before tax	Rs m	-9	-7	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-9	-7	NA
Gross profit margin	%	-56.1	-36.5
Effective tax rate	%	0.0	0.0
Net profit margin	%	-66.5	-34.5

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TCI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 11 million as compared to Rs 12 million in FY22, thereby witnessing an decrease of -8.5%.
• Long-term debt stood at Rs 3 million as compared to Rs 0 million during FY22, a growth of 1241.7%.
• Current assets rose 152% and stood at Rs 12 million, while fixed assets rose 7% and stood at Rs 117 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 129 million as against Rs 114 million during FY22, thereby witnessing a growth of 14%.

TCI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	96	109	13.2
Current Liabilities	Rs m	12	11	-8.5
Long-term Debt	Rs m	0	3	1,241.7
Total Liabilities	Rs m	114	129	13.7
Current assets	Rs m	5	12	152.2
Fixed Assets	Rs m	109	117	7.4
Total Assets	Rs m	114	129	13.7

TCI INDUSTRIES Cash Flow Statement Analysis

• TCI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -14 million, an improvement of 190.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 21 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs 1 million net cash flows seen during FY22.

TCI INDUSTRIES 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	-7	-6	-
Cash Flow from Investing Activities	Rs m	-5	-14	-
Cash Flow from Financing Activities	Rs m	13	21	63.7%
Net Cash Flow	Rs m	1	1	5.8%

Current Valuations for TCI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.4, an improvement from the EPS of Rs -10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,181.1, stands at -160.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.7 times, while the price to sales ratio stands at 55.3 times.
• The company's price to cash flow (P/CF) ratio stood at -253.2 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	15.8	21.3
TTM Earnings per share	Rs	-10.5	-7.4
Diluted earnings per share	Rs	-10.6	-7.4
Price to Cash Flow	x	-162.1	-253.2
TTM P/E ratio	x	-132.4	-160.0
Price / Book Value ratio	x	13.8	10.9
Market Cap	Rs m	1,329	1,184
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TCI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.4x 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 -8.1x during FY23, from -14.6x 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 -6.1% during FY23, from -9.9% 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 -5.3% during FY23, from -9.2% 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 -4.6% during FY23, from -7.8% 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	0.4	1.1
Debtors’ Days	Days	27	21
Interest coverage	x	-14.6	-8.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-7.8	-4.6
Return on equity	%	-9.9	-6.1
Return on capital employed	%	-9.2	-5.3

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

TCI INDUSTRIES Share Price Performance

Over the last one year, TCI INDUSTRIES share price has moved up from Rs 0.0 to Rs 1,181.1, registering a gain of Rs 1,181.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 19.3% over the year.

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