TCNS CLOTHING CO. 2022-23 Annual Report Analysis

Fri, 25 Aug

TCNS CLOTHING CO. 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.

TCNS CLOTHING CO. Income Statement Analysis

• Operating income during the year rose 34.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY23 as against 10.0% in FY22.
• Depreciation charges increased by 28.0% and finance costs increased by 40.0% YoY, respectively.
• Other income declined by 53.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.6% in FY22 to 1.5% in FY23.

TCNS CLOTHING CO. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,961	12,016	34.1%
Other income	Rs m	347	160	-53.9%
Total Revenues	Rs m	9,307	12,176	30.8%
Gross profit	Rs m	896	1,256	40.1%
Depreciation	Rs m	944	1,208	28.0%
Interest	Rs m	372	520	40.0%
Profit before tax	Rs m	-72	-312	NA
Tax	Rs m	-15	-137	NA
Profit after tax	Rs m	-57	-175	NA
Gross profit margin	%	10.0	10.5
Effective tax rate	%	20.6	43.8
Net profit margin	%	-0.6	-1.5

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TCNS CLOTHING CO. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 39.3%.
• Current assets rose 10% and stood at Rs 8 billion, while fixed assets rose 20% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 14%.

TCNS CLOTHING CO. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,503	5,380	-2.2
Current Liabilities	Rs m	3,073	4,280	39.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,034	14,877	14.1
Current assets	Rs m	7,633	8,386	9.9
Fixed Assets	Rs m	5,400	6,490	20.2
Total Assets	Rs m	13,034	14,877	14.1

TCNS CLOTHING CO. Cash Flow Statement Analysis

• TCNS CLOTHING CO.'s cash flow from operating activities (CFO) during FY23 stood at Rs 0 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion, an improvement of 6,861.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -964 million, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 122 million from the Rs -42 million net cash flows seen during FY22.

TCNS CLOTHING CO. 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	1,037	0	-
Cash Flow from Investing Activities	Rs m	16	1,086	6,861.5%
Cash Flow from Financing Activities	Rs m	-1,095	-964	-
Net Cash Flow	Rs m	-42	122	-

Current Valuations for TCNS CLOTHING CO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.8, an decline from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 408.5, stands at -45.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 38.6 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	145.4	194.7
TTM Earnings per share	Rs	-0.9	-2.8
Diluted earnings per share	Rs	-0.9	-2.8
Price to Cash Flow	x	54.4	38.6
TTM P/E ratio	x	-842.4	-45.3
Price / Book Value ratio	x	7.7	7.4
Market Cap	Rs m	42,228	39,853
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TCNS CLOTHING CO.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.5x 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 deteriorated and stood at 0.4x during FY23, from 0.8x 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 declined and down at -3.3% during FY23, from -1.0% 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 3.9% during FY23, from 5.4% 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 declined and down at 2.3% during FY23, from 2.4% 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	2.5	2.0
Debtors’ Days	Days	71	78
Interest coverage	x	0.8	0.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.4	2.3
Return on equity	%	-1.0	-3.3
Return on capital employed	%	5.4	3.9

To see how TCNS CLOTHING CO. has performed over the last 5 years, please visit here.

TCNS CLOTHING CO. Share Price Performance

Over the last one year, TCNS CLOTHING CO. share price has moved down from Rs 577.0 to Rs 408.5, registering a loss of Rs 168.5 or around 29.2%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for TCNS CLOTHING CO. and quarterly results for TCNS CLOTHING CO.)