TECHNOCRAFT 2022-23 Annual Report Analysis

Fri, 31 Mar

TECHNOCRAFT 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.

TECHNOCRAFT Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY23 as against 20.8% in FY22.
• Depreciation charges increased by 1.8% and finance costs increased by 31.3% YoY, respectively.
• Other income grew by 6.2% YoY.
• Net profit for the year declined by 0.0% YoY.
• Net profit margins during the year declined from 14.4% in FY22 to 13.8% in FY23.

TECHNOCRAFT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,111	19,845	3.8%
Other income	Rs m	474	504	6.2%
Total Revenues	Rs m	19,586	20,349	3.9%
Gross profit	Rs m	3,968	4,034	1.6%
Depreciation	Rs m	629	640	1.8%
Interest	Rs m	213	279	31.3%
Profit before tax	Rs m	3,601	3,618	0.5%
Tax	Rs m	855	872	2.0%
Profit after tax	Rs m	2,746	2,745	0.0%
Gross profit margin	%	20.8	20.3
Effective tax rate	%	23.7	24.1
Net profit margin	%	14.4	13.8

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TECHNOCRAFT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 7.6%.
• Long-term debt down at Rs 296 million as compared to Rs 478 million during FY22, a fall of 38.1%.
• Current assets rose 1% and stood at Rs 18 billion, while fixed assets rose 17% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 25 billion during FY22, thereby witnessing a growth of 6%.

TECHNOCRAFT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,367	14,158	5.9
Current Liabilities	Rs m	10,361	11,149	7.6
Long-term Debt	Rs m	478	296	-38.1
Total Liabilities	Rs m	24,770	26,196	5.8
Current assets	Rs m	17,717	17,947	1.3
Fixed Assets	Rs m	7,002	8,218	17.4
Total Assets	Rs m	24,770	26,196	5.8

TECHNOCRAFT Cash Flow Statement Analysis

• TECHNOCRAFT's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 26.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 223 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -609 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 973 million from the Rs -37 million net cash flows seen during FY22.

TECHNOCRAFT 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	1,076	1,360	26.4%
Cash Flow from Investing Activities	Rs m	-1,317	223	-
Cash Flow from Financing Activities	Rs m	205	-609	-
Net Cash Flow	Rs m	-37	973	-

Current Valuations for TECHNOCRAFT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 119.6, an improvement from the EPS of Rs 112.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,213.5, stands at 10.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	781.3	864.3
TTM Earnings per share	Rs	112.3	119.6
Diluted earnings per share	Rs	119.6	119.6
Price to Cash Flow	x	6.7	6.7
TTM P/E ratio	x	8.3	10.1
Price / Book Value ratio	x	1.3	1.6
Market Cap	Rs m	17,930	22,515
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TECHNOCRAFT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x 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 14.0x during FY23, from 17.9x 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 19.4% during FY23, from 20.5% 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 27.0% during FY23, from 27.5% 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 11.5% during FY23, from 11.9% 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	1.7	1.6
Debtors’ Days	Days	872	772
Interest coverage	x	17.9	14.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	11.5
Return on equity	%	20.5	19.4
Return on capital employed	%	27.5	27.0

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

TECHNOCRAFT Share Price Performance

Over the last one year, TECHNOCRAFT share price has moved up from Rs 991.4 to Rs 1,213.5, registering a gain of Rs 222.2 or around 22.4%.

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 TECHNOCRAFT and quarterly results for TECHNOCRAFT)