TILAKNAGAR IND. 2022-23 Annual Report Analysis

Fri, 31 Mar

TILAKNAGAR 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.

TILAKNAGAR IND. Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 152.9% in FY23 as against 55.6% in FY22.
• Depreciation charges decreased by 1.2% and finance costs decreased by 35.0% YoY, respectively.
• Other income declined by 28.3% YoY.
• Net profit for the year grew by 231.7% YoY.
• Net profit margins during the year declined from 20.1% in FY22 to 106.7% in FY23.

TILAKNAGAR IND. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	-2,253	-1,406	NA
Other income	Rs m	105	75	-28.3%
Total Revenues	Rs m	-2,148	-1,330	NA
Gross profit	Rs m	1,253	2,149	71.5%
Depreciation	Rs m	327	323	-1.2%
Interest	Rs m	619	402	-35.0%
Profit before tax	Rs m	412	1,499	263.9%
Tax	Rs m	-40	0	NA
Profit after tax	Rs m	452	1,499	231.7%
Gross profit margin	%	-55.6	-152.9
Effective tax rate	%	-9.7	0.0
Net profit margin	%	-20.1	-106.7

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TILAKNAGAR IND. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -1.2%.
• Long-term debt down at Rs 240 million as compared to Rs 4 billion during FY22, a fall of 93.7%.
• Current assets rose 31% and stood at Rs 6 billion, while fixed assets fell 22% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a fall of 0%.

TILAKNAGAR IND. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,167	4,680	301.2
Current Liabilities	Rs m	4,393	4,341	-1.2
Long-term Debt	Rs m	3,810	240	-93.7
Total Liabilities	Rs m	10,133	10,115	-0.2
Current assets	Rs m	4,200	5,515	31.3
Fixed Assets	Rs m	5,933	4,601	-22.5
Total Assets	Rs m	10,133	10,115	-0.2

TILAKNAGAR IND. Cash Flow Statement Analysis

• TILAKNAGAR IND.'s cash flow from operating activities (CFO) during FY23 stood at Rs 713 million, an improvement of 9.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -118 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -674 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -79 million from the Rs -21 million net cash flows seen during FY22.

TILAKNAGAR 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	651	713	9.5%
Cash Flow from Investing Activities	Rs m	-259	-118	-
Cash Flow from Financing Activities	Rs m	-413	-674	-
Net Cash Flow	Rs m	-21	-79	-

Current Valuations for TILAKNAGAR IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.6, stands at 14.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at -14.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	-14.2	-7.6
TTM Earnings per share	Rs	2.8	8.1
Diluted earnings per share	Rs	2.3	7.8
Price to Cash Flow	x	16.4	9.0
TTM P/E ratio	x	28.3	14.4
Price / Book Value ratio	x	9.1	3.5
Market Cap	Rs m	10,612	16,477
Dividends per share (Unadj.)	Rs	0.1	0.3

Ratio Analysis for TILAKNAGAR IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.0x 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 4.7x during FY23, from 1.7x 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 32.0% during FY23, from 38.7% 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 improved and stood at 38.6% during FY23, from 20.7% 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 18.8% during FY23, from 10.6% 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	1.0	1.3
Debtors’ Days	Days	-3,836	-8,799
Interest coverage	x	1.7	4.7
Debt to equity ratio	x	3.3	0.1
Return on assets	%	10.6	18.8
Return on equity	%	38.7	32.0
Return on capital employed	%	20.7	38.6

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

TILAKNAGAR IND. Share Price Performance

Over the last one year, TILAKNAGAR IND. share price has moved up from Rs 66.5 to Rs 112.6, registering a gain of Rs 46.1 or around 69.4%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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