TTK PRESTIGE 2022-23 Annual Report Analysis

Tue, 11 Jul

TTK PRESTIGE 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.

TTK PRESTIGE Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY23 as against 15.7% in FY22.
• Depreciation charges increased by 20.1% and finance costs increased by 47.6% YoY, respectively.
• Other income grew by 30.3% YoY.
• Net profit for the year declined by 16.5% YoY.
• Net profit margins during the year declined from 11.2% in FY22 to 9.2% in FY23.

TTK PRESTIGE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,225	27,771	2.0%
Other income	Rs m	351	457	30.3%
Total Revenues	Rs m	27,575	28,228	2.4%
Gross profit	Rs m	4,265	3,606	-15.4%
Depreciation	Rs m	442	530	20.1%
Interest	Rs m	68	101	47.6%
Profit before tax	Rs m	4,106	3,432	-16.4%
Tax	Rs m	1,052	882	-16.1%
Profit after tax	Rs m	3,054	2,550	-16.5%
Gross profit margin	%	15.7	13.0
Effective tax rate	%	25.6	25.7
Net profit margin	%	11.2	9.2

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TTK PRESTIGE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -17.7%.
• Long-term debt stood at Rs 408 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 7% and stood at Rs 19 billion, while fixed assets rose 7% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 7%.

TTK PRESTIGE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,296	19,385	12.1
Current Liabilities	Rs m	6,024	4,955	-17.7
Long-term Debt	Rs m	0	408	0.0
Total Liabilities	Rs m	24,145	25,875	7.2
Current assets	Rs m	17,344	18,615	7.3
Fixed Assets	Rs m	6,801	7,260	6.7
Total Assets	Rs m	24,145	25,875	7.2

TTK PRESTIGE Cash Flow Statement Analysis

• TTK PRESTIGE's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -675 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -257 million from the Rs -175 million net cash flows seen during FY22.

TTK PRESTIGE 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	2,936	1,990	-32.2%
Cash Flow from Investing Activities	Rs m	-2,210	-1,569	-
Cash Flow from Financing Activities	Rs m	-907	-675	-
Net Cash Flow	Rs m	-175	-257	-

Current Valuations for TTK PRESTIGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an decline from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 754.3, stands at 41.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 38.3 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	196.4	200.4
TTM Earnings per share	Rs	22.0	18.4
Diluted earnings per share	Rs	22.0	18.4
Price to Cash Flow	x	32.8	38.3
TTM P/E ratio	x	37.5	41.0
Price / Book Value ratio	x	50.5	6.1
Market Cap	Rs m	873,691	118,037
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for TTK PRESTIGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 2.9x 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 35.0x during FY23, from 61.1x 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 13.2% during FY23, from 17.7% 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 17.8% during FY23, from 24.1% 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 10.2% during FY23, from 12.9% 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	2.9	3.8
Debtors’ Days	Days	4	4
Interest coverage	x	61.1	35.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	10.2
Return on equity	%	17.7	13.2
Return on capital employed	%	24.1	17.8

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

TTK PRESTIGE Share Price Performance

Over the last one year, TTK PRESTIGE share price has moved down from Rs 845.2 to Rs 754.3, registering a loss of Rs 91.0 or around 10.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,725.6 (down 1.6%). Over the last one year it has moved up from 37,475.8 to 42,725.6, a gain of 5,250 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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