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TANFAC INDUSTRIES 2022-23 Annual Report Analysis

Thu, 8 Feb

TANFAC INDUSTRIES 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.

TANFAC INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY23 as against 23.8% in FY22.
• Depreciation charges increased by 13.1% and finance costs increased by 11.5% YoY, respectively.
• Other income grew by 132.7% YoY.
• Net profit for the year grew by 5.3% YoY.
• Net profit margins during the year declined from 16.6% in FY22 to 15.0% in FY23.

TANFAC INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,202	3,749	17.1%
Other income	Rs m	34	79	132.7%
Total Revenues	Rs m	3,236	3,829	18.3%
Gross profit	Rs m	762	761	0.0%
Depreciation	Rs m	56	63	13.1%
Interest	Rs m	20	23	11.5%
Profit before tax	Rs m	719	755	4.9%
Tax	Rs m	187	193	3.6%
Profit after tax	Rs m	533	561	5.3%
Gross profit margin	%	23.8	20.3
Effective tax rate	%	25.9	25.6
Net profit margin	%	16.6	15.0

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TANFAC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 822 million as compared to Rs 558 million in FY22, thereby witnessing an increase of 47.4%.
• Current assets rose 50% and stood at Rs 2 billion, while fixed assets rose 16% and stood at Rs 630 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 40%.

TANFAC INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,337	1,843	37.8
Current Liabilities	Rs m	558	822	47.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,933	2,707	40.1
Current assets	Rs m	1,389	2,077	49.6
Fixed Assets	Rs m	544	630	15.8
Total Assets	Rs m	1,933	2,707	40.1

TANFAC INDUSTRIES Cash Flow Statement Analysis

• TANFAC INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 429 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -396 million, an improvement of 13.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -64 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -30 million from the Rs 45 million net cash flows seen during FY22.

TANFAC INDUSTRIES 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	439	429	-2.3%
Cash Flow from Investing Activities	Rs m	-349	-396	-
Cash Flow from Financing Activities	Rs m	-45	-64	-
Net Cash Flow	Rs m	45	-30	-

Current Valuations for TANFAC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.2, an improvement from the EPS of Rs 53.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 997.8, stands at 17.7 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 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 13.4 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	320.8	375.7
TTM Earnings per share	Rs	53.4	56.2
Diluted earnings per share	Rs	53.4	56.3
Price to Cash Flow	x	9.9	13.4
TTM P/E ratio	x	10.9	17.7
Price / Book Value ratio	x	3.7	4.5
Market Cap	Rs m	4,992	8,372
Dividends per share (Unadj.)	Rs	9.0	6.5

Ratio Analysis for TANFAC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.5x 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 34.4x during FY23, from 36.6x 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 30.5% during FY23, from 39.9% 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 42.2% during FY23, from 55.3% 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 21.6% during FY23, from 28.6% 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	2.5	2.5
Debtors’ Days	Days	284	494
Interest coverage	x	36.6	34.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.6	21.6
Return on equity	%	39.9	30.5
Return on capital employed	%	55.3	42.2

To see how TANFAC INDUSTRIES has performed over the last 5 years, please visit here.

TANFAC INDUSTRIES Share Price Performance

Over the last one year, TANFAC INDUSTRIES share price has moved up from Rs 581.7 to Rs 997.8, registering a gain of Rs 416.1 or around 71.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

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

(To know more, check out historical annual results for TANFAC INDUSTRIES and quarterly results for TANFAC INDUSTRIES)