TIMEX GROUP 2022-23 Annual Report Analysis

Wed, 22 Nov

TIMEX GROUP 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.

TIMEX GROUP Income Statement Analysis

• Operating income during the year rose 45.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 373.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.0% in FY23 as against 3.1% in FY22.
• Depreciation charges increased by 0.8% and finance costs increased by 124.7% YoY, respectively.
• Other income declined by 69.4% YoY.
• Net profit for the year grew by 1344.7% YoY.
• Net profit margins during the year grew from 1.2% in FY22 to 12.1% in FY23.

TIMEX GROUP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,645	3,835	45.0%
Other income	Rs m	11	3	-69.4%
Total Revenues	Rs m	2,655	3,838	44.5%
Gross profit	Rs m	81	383	373.0%
Depreciation	Rs m	36	36	0.8%
Interest	Rs m	24	54	124.7%
Profit before tax	Rs m	32	297	821.4%
Tax	Rs m	0	-169	0.0
Profit after tax	Rs m	32	465	1,344.7%
Gross profit margin	%	3.1	10.0
Effective tax rate	%	0.0	-56.8
Net profit margin	%	1.2	12.1

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TIMEX GROUP Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 961 million in FY22, thereby witnessing an increase of 12.6%.
• Long-term debt stood at Rs 17 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 42% and stood at Rs 2 billion, while fixed assets rose 0% and stood at Rs 183 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 36%.

TIMEX GROUP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	156	605	288.7
Current Liabilities	Rs m	961	1,083	12.6
Long-term Debt	Rs m	0	17	0.0
Total Liabilities	Rs m	1,304	1,775	36.1
Current assets	Rs m	1,121	1,592	41.9
Fixed Assets	Rs m	183	183	0.2
Total Assets	Rs m	1,304	1,775	36.1

TIMEX GROUP Cash Flow Statement Analysis

• TIMEX GROUP's cash flow from operating activities (CFO) during FY23 stood at Rs 98 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -13 million, an improvement of 30.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -76 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 9 million from the Rs -10 million net cash flows seen during FY22.

TIMEX GROUP 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	-177	98	-
Cash Flow from Investing Activities	Rs m	-10	-13	-
Cash Flow from Financing Activities	Rs m	177	-76	-
Net Cash Flow	Rs m	-10	9	-

Current Valuations for TIMEX GROUP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 181.0, stands at 59.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 30.2 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.7 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	26.2	38.0
TTM Earnings per share	Rs	0.3	4.6
Diluted earnings per share	Rs	0.3	4.6
Price to Cash Flow	x	99.0	22.7
TTM P/E ratio	x	208.8	59.0
Price / Book Value ratio	x	42.1	18.8
Market Cap	Rs m	6,562	11,357
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TIMEX GROUP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.2x 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 6.5x during FY23, from 2.3x 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 76.9% during FY23, from 20.7% 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 56.3% during FY23, from 36.0% 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 29.2% during FY23, from 4.3% 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	1.2	1.5
Debtors’ Days	Days	671	499
Interest coverage	x	2.3	6.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.3	29.2
Return on equity	%	20.7	76.9
Return on capital employed	%	36.0	56.3

To see how TIMEX GROUP has performed over the last 5 years, please visit here.

TIMEX GROUP Share Price Performance

Over the last one year, TIMEX GROUP share price has moved up from Rs 139.2 to Rs 181.0, registering a gain of Rs 41.9 or around 30.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 46,605.4 (up 0.5%). Over the last one year it has moved up from 41,082.0 to 46,605.4, a gain of 5,523 points (up 13.4%).

Overall, the S&P BSE SENSEX is up 8.0% over the year.

(To know more, check out historical annual results for TIMEX GROUP and quarterly results for TIMEX GROUP)