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TIPS IND. 2022-23 Annual Report Analysis

Mon, 21 Aug

TIPS IND. 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.

TIPS IND. Income Statement Analysis

• Operating income during the year rose 37.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 54.6% in FY23 as against 63.6% in FY22.
• Depreciation charges increased by 77.0% and finance costs increased by 291.8% YoY, respectively.
• Other income grew by 66.9% YoY.
• Net profit for the year grew by 18.5% YoY.
• Net profit margins during the year declined from 47.6% in FY22 to 41.0% in FY23.

TIPS IND. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,356	1,868	37.8%
Other income	Rs m	32	54	66.9%
Total Revenues	Rs m	1,388	1,921	38.4%
Gross profit	Rs m	862	1,019	18.2%
Depreciation	Rs m	7	13	77.0%
Interest	Rs m	1	3	291.8%
Profit before tax	Rs m	886	1,056	19.2%
Tax	Rs m	241	291	21.0%
Profit after tax	Rs m	646	765	18.5%
Gross profit margin	%	63.6	54.6
Effective tax rate	%	27.2	27.6
Net profit margin	%	47.6	41.0

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

TIPS IND. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 495 million in FY22, thereby witnessing an increase of 108.1%.
• Current assets rose 28% and stood at Rs 2 billion, while fixed assets rose 57% and stood at Rs 275 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 31%.

TIPS IND. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,024	1,362	33.0
Current Liabilities	Rs m	495	1,030	108.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,849	2,419	30.8
Current assets	Rs m	1,674	2,144	28.1
Fixed Assets	Rs m	175	275	57.0
Total Assets	Rs m	1,849	2,419	30.8

TIPS IND. Cash Flow Statement Analysis

• TIPS IND.'s cash flow from operating activities (CFO) during FY23 stood at Rs 823 million, an improvement of 180.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -495 million, an improvement of 82.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -435 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -107 million from the Rs -6 million net cash flows seen during FY22.

TIPS IND. 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	293	823	180.3%
Cash Flow from Investing Activities	Rs m	-271	-495	-
Cash Flow from Financing Activities	Rs m	-28	-435	-
Net Cash Flow	Rs m	-6	-107	-

Current Valuations for TIPS IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.6, an improvement from the EPS of Rs 49.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 295.1, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 27.8 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 3.0 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	104.5	145.5
TTM Earnings per share	Rs	49.8	59.6
Diluted earnings per share	Rs	5.0	6.0
Price to Cash Flow	x	43.3	3.0
TTM P/E ratio	x	45.8	43.8
Price / Book Value ratio	x	19.4	1.7
Market Cap	Rs m	19,888	2,343
Dividends per share (Unadj.)	Rs	0.2	0.5

Ratio Analysis for TIPS IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 3.4x 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 deteriorated and stood at 370.4x during FY23, from 1,214.9x 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 56.2% during FY23, from 63.0% 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 77.8% during FY23, from 86.6% 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 31.8% during FY23, from 34.9% 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	3.4	2.1
Debtors’ Days	Days	482	396
Interest coverage	x	1,214.9	370.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.9	31.8
Return on equity	%	63.0	56.2
Return on capital employed	%	86.6	77.8

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

TIPS IND. Share Price Performance

Over the last one year, TIPS IND. share price has moved up from Rs 158.2 to Rs 295.1, registering a gain of Rs 136.9 or around 86.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,898.2 (up 0.6%). Over the last one year it has moved down from 13,903.0 to 13,898.2, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for TIPS IND. and quarterly results for TIPS IND.)