TINNA TRADE 2022-23 Annual Report Analysis

Tue, 20 Jun

TINNA TRADE 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.

TINNA TRADE Income Statement Analysis

• Operating income during the year fell 12.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.5% in FY23 as against 0.5% in FY22.
• Depreciation charges decreased by 39.9% and finance costs increased by 31.3% YoY, respectively.
• Other income declined by 68.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.2% in FY22 to 0.9% in FY23.

TINNA TRADE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,346	2,941	-12.1%
Other income	Rs m	27	8	-68.9%
Total Revenues	Rs m	3,373	2,950	-12.6%
Gross profit	Rs m	16	15	-7.7%
Depreciation	Rs m	3	2	-39.9%
Interest	Rs m	38	49	31.3%
Profit before tax	Rs m	2	-28	NA
Tax	Rs m	-4	-2	NA
Profit after tax	Rs m	6	-26	NA
Gross profit margin	%	0.5	0.5
Effective tax rate	%	-166.1	6.6
Net profit margin	%	0.2	-0.9

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

TINNA TRADE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 392 million as compared to Rs 535 million in FY22, thereby witnessing an decrease of -26.7%.
• Long-term debt down at Rs 59 million as compared to Rs 71 million during FY22, a fall of 17.2%.
• Current assets fell 15% and stood at Rs 612 million, while fixed assets fell 25% and stood at Rs 110 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 722 million as against Rs 863 million during FY22, thereby witnessing a fall of 16%.

TINNA TRADE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	273	290	6.2
Current Liabilities	Rs m	535	392	-26.7
Long-term Debt	Rs m	71	59	-17.2
Total Liabilities	Rs m	863	722	-16.3
Current assets	Rs m	716	612	-14.5
Fixed Assets	Rs m	146	110	-25.0
Total Assets	Rs m	863	722	-16.3

TINNA TRADE Cash Flow Statement Analysis

• TINNA TRADE's cash flow from operating activities (CFO) during FY23 stood at Rs -3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 32 million, an improvement of 170.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -109 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -80 million from the Rs 130 million net cash flows seen during FY22.

TINNA TRADE 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	79	-3	-
Cash Flow from Investing Activities	Rs m	12	32	170.1%
Cash Flow from Financing Activities	Rs m	39	-109	-
Net Cash Flow	Rs m	130	-80	-

Current Valuations for TINNA TRADE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.1, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.0, stands at -7.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -14.9 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	390.9	343.6
TTM Earnings per share	Rs	0.7	-3.1
Diluted earnings per share	Rs	0.7	-3.1
Price to Cash Flow	x	25.7	-14.9
TTM P/E ratio	x	40.6	-7.8
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	309	362
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TINNA TRADE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.3x 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 0.4x during FY23, from 1.1x 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 -9.1% during FY23, from 2.1% 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 6.0% during FY23, from 11.5% 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 3.2% during FY23, from 5.0% 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	1.3	1.6
Debtors’ Days	Days	257	467
Interest coverage	x	1.1	0.4
Debt to equity ratio	x	0.3	0.2
Return on assets	%	5.0	3.2
Return on equity	%	2.1	-9.1
Return on capital employed	%	11.5	6.0

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

TINNA TRADE Share Price Performance

Over the last one year, TINNA TRADE share price has moved down from Rs 29.8 to Rs 24.0, registering a loss of Rs 5.8 or around 19.5%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for TINNA TRADE and quarterly results for TINNA TRADE)