TECHNO ELECTRIC & ENG 2022-23 Annual Report Analysis

Fri, 31 Mar

TECHNO ELECTRIC & ENG 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.

TECHNO ELECTRIC & ENG Income Statement Analysis

• Operating income during the year fell 17.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY23 as against 15.9% in FY22.
• Depreciation charges increased by 2.1% and finance costs increased by 58.9% YoY, respectively.
• Other income declined by 51.6% YoY.
• Net profit for the year declined by 59.6% YoY.
• Net profit margins during the year declined from 24.0% in FY22 to 11.6% in FY23.

TECHNO ELECTRIC & ENG Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,992	8,295	-17.0%
Other income	Rs m	1,544	746	-51.6%
Total Revenues	Rs m	11,535	9,041	-21.6%
Gross profit	Rs m	1,588	873	-45.0%
Depreciation	Rs m	74	76	2.1%
Interest	Rs m	71	113	58.9%
Profit before tax	Rs m	2,986	1,431	-52.1%
Tax	Rs m	592	464	-21.5%
Profit after tax	Rs m	2,394	966	-59.6%
Gross profit margin	%	15.9	10.5
Effective tax rate	%	19.8	32.5
Net profit margin	%	24.0	11.6

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TECHNO ELECTRIC & ENG Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 41.5%.
• Current assets rose 27% and stood at Rs 27 billion, while fixed assets fell 59% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 12%.

TECHNO ELECTRIC & ENG Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,367	19,302	5.1
Current Liabilities	Rs m	4,908	6,946	41.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	25,795	28,808	11.7
Current assets	Rs m	21,000	26,733	27.3
Fixed Assets	Rs m	4,795	1,958	-59.2
Total Assets	Rs m	25,795	28,808	11.7

TECHNO ELECTRIC & ENG Cash Flow Statement Analysis

• TECHNO ELECTRIC & ENG's cash flow from operating activities (CFO) during FY23 stood at Rs 934 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 126 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 29 million from the Rs -283 million net cash flows seen during FY22.

TECHNO ELECTRIC & ENG 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	2,593	934	-64.0%
Cash Flow from Investing Activities	Rs m	-2,240	126	-
Cash Flow from Financing Activities	Rs m	-636	-1,030	-
Net Cash Flow	Rs m	-283	29	-

Current Valuations for TECHNO ELECTRIC & ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 337.2, stands at 40.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 32.1 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	90.8	77.1
TTM Earnings per share	Rs	21.8	9.0
Diluted earnings per share	Rs	22.2	9.0
Price to Cash Flow	x	10.8	32.1
TTM P/E ratio	x	9.7	40.7
Price / Book Value ratio	x	1.7	1.7
Market Cap	Rs m	31,680	33,470
Dividends per share (Unadj.)	Rs	2.0	6.0

Ratio Analysis for TECHNO ELECTRIC & ENG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY23, from 4.3x 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 13.7x during FY23, from 43.0x 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 5.0% during FY23, from 13.0% 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 8.0% during FY23, from 16.6% 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 3.7% during FY23, from 9.6% 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	4.3	3.8
Debtors’ Days	Days	2,133	2,822
Interest coverage	x	43.0	13.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	3.7
Return on equity	%	13.0	5.0
Return on capital employed	%	16.6	8.0

To see how TECHNO ELECTRIC & ENG has performed over the last 5 years, please visit here.

TECHNO ELECTRIC & ENG Share Price Performance

Over the last one year, TECHNO ELECTRIC & ENG share price has moved up from Rs 247.4 to Rs 337.2, registering a gain of Rs 89.8 or around 36.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for TECHNO ELECTRIC & ENG and quarterly results for TECHNO ELECTRIC & ENG)