TIMKEN INDIA 2022-23 Annual Report Analysis

Thu, 10 Aug

TIMKEN INDIA 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.

TIMKEN INDIA Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.0% in FY23 as against 23.2% in FY22.
• Depreciation charges increased by 3.4% and finance costs increased by 15.0% YoY, respectively.
• Other income grew by 272.1% YoY.
• Net profit for the year grew by 19.5% YoY.
• Net profit margins during the year declined from 14.8% in FY22 to 13.9% in FY23.

TIMKEN INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,032	28,066	27.4%
Other income	Rs m	143	532	272.1%
Total Revenues	Rs m	22,175	28,598	29.0%
Gross profit	Rs m	5,107	5,604	9.7%
Depreciation	Rs m	843	872	3.4%
Interest	Rs m	24	28	15.0%
Profit before tax	Rs m	4,382	5,235	19.5%
Tax	Rs m	1,111	1,328	19.5%
Profit after tax	Rs m	3,271	3,907	19.5%
Gross profit margin	%	23.2	20.0
Effective tax rate	%	25.3	25.4
Net profit margin	%	14.8	13.9

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TIMKEN INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -9.6%.
• Current assets rose 17% and stood at Rs 20 billion, while fixed assets rose 1% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 11%.

TIMKEN INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	16,569	20,372	22.9
Current Liabilities	Rs m	8,480	7,669	-9.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,060	28,961	11.1
Current assets	Rs m	16,722	19,512	16.7
Fixed Assets	Rs m	9,338	9,448	1.2
Total Assets	Rs m	26,060	28,961	11.1

TIMKEN INDIA Cash Flow Statement Analysis

• TIMKEN INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 937.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -472 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -153 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -567 million net cash flows seen during FY22.

TIMKEN INDIA 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	329	3,412	937.1%
Cash Flow from Investing Activities	Rs m	-761	-472	-
Cash Flow from Financing Activities	Rs m	-147	-153	-
Net Cash Flow	Rs m	-567	2,805	-

Current Valuations for TIMKEN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.9, an improvement from the EPS of Rs 43.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,437.8, stands at 66.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at 43.1 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	292.9	373.1
TTM Earnings per share	Rs	43.5	51.9
Diluted earnings per share	Rs	43.5	51.9
Price to Cash Flow	x	39.4	43.1
TTM P/E ratio	x	49.5	66.2
Price / Book Value ratio	x	8.0	10.1
Market Cap	Rs m	132,673	205,934
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for TIMKEN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.0x 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 187.1x during FY23, from 180.1x 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 19.2% during FY23, from 19.7% 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 25.8% during FY23, from 26.6% 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 13.6% during FY23, from 12.6% 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	2.0	2.5
Debtors’ Days	Days	89	75
Interest coverage	x	180.1	187.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	13.6
Return on equity	%	19.7	19.2
Return on capital employed	%	26.6	25.8

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

TIMKEN INDIA Share Price Performance

Over the last one year, TIMKEN INDIA share price has moved up from Rs 3,094.8 to Rs 3,437.8, registering a gain of Rs 343.1 or around 11.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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