TITAN 2022-23 Annual Report Analysis

Sun, 9 Jul

TITAN 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.

TITAN Income Statement Analysis

• Operating income during the year rose 40.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY23 as against 11.4% in FY22.
• Depreciation charges increased by 10.5% and finance costs increased by 37.6% YoY, respectively.
• Other income grew by 44.1% YoY.
• Net profit for the year grew by 49.0% YoY.
• Net profit margins during the year grew from 7.6% in FY22 to 8.1% in FY23.

TITAN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	287,990	405,750	40.9%
Other income	Rs m	2,380	3,430	44.1%
Total Revenues	Rs m	290,370	409,180	40.9%
Gross profit	Rs m	32,830	48,450	47.6%
Depreciation	Rs m	3,990	4,410	10.5%
Interest	Rs m	2,180	3,000	37.6%
Profit before tax	Rs m	29,040	44,470	53.1%
Tax	Rs m	7,060	11,730	66.1%
Profit after tax	Rs m	21,980	32,740	49.0%
Gross profit margin	%	11.4	11.9
Effective tax rate	%	24.3	26.4
Net profit margin	%	7.6	8.1

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

TITAN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 133 billion as compared to Rs 105 billion in FY22, thereby witnessing an increase of 26.2%.
• Current assets rose 28% and stood at Rs 224 billion, while fixed assets rose 25% and stood at Rs 45 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 269 billion as against Rs 210 billion during FY22, thereby witnessing a growth of 28%.

TITAN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	92,970	118,440	27.4
Current Liabilities	Rs m	105,120	132,640	26.2
Long-term Debt	Rs m	20	0	-100.0
Total Liabilities	Rs m	210,070	268,650	27.9
Current assets	Rs m	174,540	223,890	28.3
Fixed Assets	Rs m	35,530	44,580	25.5
Total Assets	Rs m	210,070	268,650	27.9

TITAN Cash Flow Statement Analysis

• TITAN's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -18 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 5 billion, an improvement of 213% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 130 million from the Rs 380 million net cash flows seen during FY22.

TITAN 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	-7,240	13,700	-
Cash Flow from Investing Activities	Rs m	11,640	-18,110	-
Cash Flow from Financing Activities	Rs m	-4,030	4,570	-
Net Cash Flow	Rs m	380	130	-65.8%

Current Valuations for TITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.9, an improvement from the EPS of Rs 24.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,144.8, stands at 85.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.6 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 55.2 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	324.4	457.0
TTM Earnings per share	Rs	24.8	36.9
Diluted earnings per share	Rs	24.8	36.9
Price to Cash Flow	x	86.7	55.2
TTM P/E ratio	x	102.4	85.3
Price / Book Value ratio	x	19.9	17.3
Market Cap	Rs m	1,850,264	2,049,553
Dividends per share (Unadj.)	Rs	7.5	10.0

Ratio Analysis for TITAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 improved and stood at 15.8x during FY23, from 14.3x 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 improved and stood at 27.6% during FY23, from 23.6% 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 improved and stood at 40.1% during FY23, from 33.6% 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 improved and stood at 13.3% during FY23, from 11.5% 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	1.7
Debtors’ Days	Days	1	1
Interest coverage	x	14.3	15.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	13.3
Return on equity	%	23.6	27.6
Return on capital employed	%	33.6	40.1

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

TITAN Share Price Performance

Over the last one year, TITAN share price has moved up from Rs 2,143.8 to Rs 3,144.8, registering a gain of Rs 1,001.0 or around 46.7%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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