TIMES GUARANTY 2022-23 Annual Report Analysis

Mon, 5 Jun

TIMES GUARANTY 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.

TIMES GUARANTY Income Statement Analysis

• Operating income during the year fell 27.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 53.8% in FY23 as against 74.3% in FY22.
• Depreciation charges increased by 0.0% and finance costs decreased by 62.5% YoY, respectively.
• Other income grew by 2300.0% YoY.
• Net profit for the year declined by 40.1% YoY.
• Net profit margins during the year declined from 57.6% in FY22 to 47.8% in FY23.

TIMES GUARANTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27	20	-27.9%
Other income	Rs m	0	0	2,300.0%
Total Revenues	Rs m	27	20	-27.1%
Gross profit	Rs m	20	11	-47.8%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	0	0	-62.5%
Profit before tax	Rs m	20	11	-46.5%
Tax	Rs m	4	1	-68.9%
Profit after tax	Rs m	16	9	-40.1%
Gross profit margin	%	74.3	53.8
Effective tax rate	%	22.0	12.8
Net profit margin	%	57.6	47.8

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TIMES GUARANTY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 million as compared to Rs 1 million in FY22, thereby witnessing an decrease of -17.6%.
• Current assets rose 73% and stood at Rs 218 million, while fixed assets fell 27% and stood at Rs 219 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 437 million as against Rs 428 million during FY22, thereby witnessing a growth of 2%.

TIMES GUARANTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	427	437	2.2
Current Liabilities	Rs m	1	1	-17.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	428	437	2.2
Current assets	Rs m	126	218	73.0
Fixed Assets	Rs m	302	219	-27.5
Total Assets	Rs m	428	437	2.2

TIMES GUARANTY Cash Flow Statement Analysis

• TIMES GUARANTY's cash flow from operating activities (CFO) during FY23 stood at Rs 84 million, an improvement of 224.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -86 million, an improvement of 188.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs -4 million net cash flows seen during FY22.

TIMES GUARANTY 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	26	84	224.3%
Cash Flow from Investing Activities	Rs m	-30	-86	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	-4	-2	-

Current Valuations for TIMES GUARANTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.1, stands at 54.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 26.2 times.
• The company's price to cash flow (P/CF) ratio stood at 53.5 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	3.0	2.2
TTM Earnings per share	Rs	1.7	1.0
Diluted earnings per share	Rs	1.7	1.0
Price to Cash Flow	x	31.7	53.5
TTM P/E ratio	x	31.8	54.9
Price / Book Value ratio	x	1.2	1.1
Market Cap	Rs m	518	501
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TIMES GUARANTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 358.0x during FY23, from 170.6x 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 179.8x during FY23, from 126.4x 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 2.1% during FY23, from 3.7% 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 2.5% during FY23, from 4.7% 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 declined and down at 2.2% during FY23, from 3.7% 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	170.6	358.0
Debtors’ Days	Days	298	0
Interest coverage	x	126.4	179.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	2.2
Return on equity	%	3.7	2.1
Return on capital employed	%	4.7	2.5

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

TIMES GUARANTY Share Price Performance

Over the last one year, TIMES GUARANTY share price has moved up from Rs 49.6 to Rs 57.1, registering a gain of Rs 7.5 or around 15.1%.

Overall, the S&P BSE SENSEX is up 13.5% over the year.

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