THANGAMAYIL JEWELLERY 2022-23 Annual Report Analysis

Tue, 13 Jun

THANGAMAYIL JEWELLERY 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.

THANGAMAYIL JEWELLERY Income Statement Analysis

• Operating income during the year rose 43.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.9% in FY23 as against 3.9% in FY22.
• Depreciation charges increased by 38.8% and finance costs increased by 33.4% YoY, respectively.
• Other income grew by 100.6% YoY.
• Net profit for the year grew by 106.9% YoY.
• Net profit margins during the year grew from 1.8% in FY22 to 2.5% in FY23.

THANGAMAYIL JEWELLERY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,931	31,526	43.7%
Other income	Rs m	17	34	100.6%
Total Revenues	Rs m	21,948	31,559	43.8%
Gross profit	Rs m	862	1,529	77.4%
Depreciation	Rs m	97	134	38.8%
Interest	Rs m	262	349	33.4%
Profit before tax	Rs m	520	1,079	107.5%
Tax	Rs m	135	282	109.0%
Profit after tax	Rs m	385	798	106.9%
Gross profit margin	%	3.9	4.9
Effective tax rate	%	25.9	26.1
Net profit margin	%	1.8	2.5

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

THANGAMAYIL JEWELLERY 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 51.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY22, a growth of 26.6%.
• Current assets rose 39% and stood at Rs 11 billion, while fixed assets rose 28% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 38%.

THANGAMAYIL JEWELLERY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,243	3,888	19.9
Current Liabilities	Rs m	4,653	7,047	51.5
Long-term Debt	Rs m	1,061	1,342	26.6
Total Liabilities	Rs m	9,040	12,442	37.6
Current assets	Rs m	7,992	11,099	38.9
Fixed Assets	Rs m	1,048	1,343	28.2
Total Assets	Rs m	9,040	12,442	37.6

THANGAMAYIL JEWELLERY Cash Flow Statement Analysis

• THANGAMAYIL JEWELLERY's cash flow from operating activities (CFO) during FY23 stood at Rs 104 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -864 million, an improvement of 309.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 780 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs -66 million net cash flows seen during FY22.

THANGAMAYIL JEWELLERY 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	-791	104	-
Cash Flow from Investing Activities	Rs m	-211	-864	-
Cash Flow from Financing Activities	Rs m	936	780	-16.6%
Net Cash Flow	Rs m	-66	20	-

Current Valuations for THANGAMAYIL JEWELLERY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.1, an improvement from the EPS of Rs 28.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,476.6, stands at 25.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 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	1,598.5	2,297.8
TTM Earnings per share	Rs	28.1	58.1
Diluted earnings per share	Rs	28.1	58.1
Price to Cash Flow	x	30.9	16.8
TTM P/E ratio	x	38.7	25.4
Price / Book Value ratio	x	4.4	4.0
Market Cap	Rs m	14,407	15,616
Dividends per share (Unadj.)	Rs	10.0	12.0

Ratio Analysis for THANGAMAYIL JEWELLERY

• 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 improved and stood at 4.1x during FY23, from 3.0x 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 improved and stood at 20.5% during FY23, from 11.9% 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 27.3% during FY23, from 18.2% 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 9.2% during FY23, from 7.2% 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	4	4
Interest coverage	x	3.0	4.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	7.2	9.2
Return on equity	%	11.9	20.5
Return on capital employed	%	18.2	27.3

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

THANGAMAYIL JEWELLERY Share Price Performance

Over the last one year, THANGAMAYIL JEWELLERY share price has moved up from Rs 1,024.2 to Rs 1,476.6, registering a gain of Rs 452.5 or around 44.2%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

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