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TIDE WATER 2022-23 Annual Report Analysis

Thu, 17 Aug

TIDE WATER 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.

TIDE WATER Income Statement Analysis

• Operating income during the year rose 20.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY23 as against 10.3% in FY22.
• Depreciation charges increased by 0.5% and finance costs decreased by 6.9% YoY, respectively.
• Other income declined by 23.7% YoY.
• Net profit for the year declined by 6.9% YoY.
• Net profit margins during the year declined from 8.0% in FY22 to 6.2% in FY23.

TIDE WATER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,357	18,538	20.7%
Other income	Rs m	197	150	-23.7%
Total Revenues	Rs m	15,554	18,688	20.2%
Gross profit	Rs m	1,575	1,491	-5.3%
Depreciation	Rs m	155	156	0.5%
Interest	Rs m	16	15	-6.9%
Profit before tax	Rs m	1,601	1,471	-8.1%
Tax	Rs m	372	326	-12.4%
Profit after tax	Rs m	1,229	1,145	-6.9%
Gross profit margin	%	10.3	8.0
Effective tax rate	%	23.2	22.2
Net profit margin	%	8.0	6.2

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TIDE WATER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 3.7%.
• Current assets rose 5% and stood at Rs 12 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 5%.

TIDE WATER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,198	7,636	6.1
Current Liabilities	Rs m	7,423	7,698	3.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,155	15,869	4.7
Current assets	Rs m	11,676	12,309	5.4
Fixed Assets	Rs m	3,479	3,560	2.3
Total Assets	Rs m	15,155	15,869	4.7

TIDE WATER Cash Flow Statement Analysis

• TIDE WATER's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 10.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 57 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -815 million, an improvement of 43% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 283 million from the Rs -115 million net cash flows seen during FY22.

TIDE WATER 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	934	1,035	10.7%
Cash Flow from Investing Activities	Rs m	373	57	-84.6%
Cash Flow from Financing Activities	Rs m	-1,423	-815	-
Net Cash Flow	Rs m	-115	283	-

Current Valuations for TIDE WATER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.7, an decline from the EPS of Rs 70.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,126.6, stands at 18.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 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	881.6	1,064.2
TTM Earnings per share	Rs	70.6	65.7
Diluted earnings per share	Rs	70.5	65.7
Price to Cash Flow	x	14.0	14.2
TTM P/E ratio	x	17.2	18.8
Price / Book Value ratio	x	23.7	2.4
Market Cap	Rs m	170,527	18,511
Dividends per share (Unadj.)	Rs	55.0	42.0

Ratio Analysis for TIDE WATER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.6x 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 99.7x during FY23, from 101.1x 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 15.0% during FY23, from 17.1% 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 19.5% during FY23, from 22.5% 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 7.3% during FY23, from 8.2% 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	1.6	1.6
Debtors’ Days	Days	5	5
Interest coverage	x	101.1	99.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	7.3
Return on equity	%	17.1	15.0
Return on capital employed	%	22.5	19.5

To see how TIDE WATER has performed over the last 5 years, please visit here.

TIDE WATER Share Price Performance

Over the last one year, TIDE WATER share price has moved down from Rs 1,141.5 to Rs 1,126.6, registering a loss of Rs 14.9 or around 1.3%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,902.9 (down 0.8%). Over the last one year it has moved down from 20,168.0 to 18,902.9, a loss of 1,265 points (down 6.3%).

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for TIDE WATER and quarterly results for TIDE WATER)