TRANSPORT CORP 2022-23 Annual Report Analysis

Fri, 31 Mar

TRANSPORT CORP 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.

TRANSPORT CORP Income Statement Analysis

• Operating income during the year rose 16.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY23 as against 13.5% in FY22.
• Depreciation charges increased by 7.4% and finance costs decreased by 23.4% YoY, respectively.
• Other income grew by 70.1% YoY.
• Net profit for the year grew by 9.5% YoY.
• Net profit margins during the year declined from 9.0% in FY22 to 8.5% in FY23.

TRANSPORT CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32,588	37,826	16.1%
Other income	Rs m	178	303	70.1%
Total Revenues	Rs m	32,766	38,128	16.4%
Gross profit	Rs m	4,385	4,650	6.0%
Depreciation	Rs m	1,130	1,214	7.4%
Interest	Rs m	128	98	-23.4%
Profit before tax	Rs m	3,305	3,640	10.2%
Tax	Rs m	376	434	15.4%
Profit after tax	Rs m	2,928	3,206	9.5%
Gross profit margin	%	13.5	12.3
Effective tax rate	%	11.4	11.9
Net profit margin	%	9.0	8.5

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TRANSPORT CORP Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -6.2%.
• Long-term debt stood at Rs 396 million as compared to Rs 228 million during FY22, a growth of 73.5%.
• Current assets rose 27% and stood at Rs 10 billion, while fixed assets rose 5% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 15%.

TRANSPORT CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,224	16,918	18.9
Current Liabilities	Rs m	2,861	2,684	-6.2
Long-term Debt	Rs m	228	396	73.5
Total Liabilities	Rs m	18,270	21,009	15.0
Current assets	Rs m	8,153	10,345	26.9
Fixed Assets	Rs m	10,117	10,654	5.3
Total Assets	Rs m	18,270	21,009	15.0

TRANSPORT CORP Cash Flow Statement Analysis

• TRANSPORT CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 153.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -655 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 338 million net cash flows seen during FY22.

TRANSPORT CORP 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	3,680	3,606	-2.0%
Cash Flow from Investing Activities	Rs m	-762	-1,931	-
Cash Flow from Financing Activities	Rs m	-2,580	-655	-
Net Cash Flow	Rs m	338	1,020	201.6%

Current Valuations for TRANSPORT CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.3, an improvement from the EPS of Rs 37.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 627.9, stands at 17.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	421.4	487.7
TTM Earnings per share	Rs	37.9	41.3
Diluted earnings per share	Rs	37.7	41.3
Price to Cash Flow	x	11.5	12.3
TTM P/E ratio	x	17.6	17.7
Price / Book Value ratio	x	3.0	3.2
Market Cap	Rs m	42,989	54,318
Dividends per share (Unadj.)	Rs	6.0	7.0

Ratio Analysis for TRANSPORT CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY23, from 2.9x 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 38.1x during FY23, from 26.8x 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 19.0% during FY23, from 20.6% 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 21.6% during FY23, from 23.8% 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 15.7% during FY23, from 16.7% 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	2.9	3.9
Debtors’ Days	Days	57	54
Interest coverage	x	26.8	38.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.7	15.7
Return on equity	%	20.6	19.0
Return on capital employed	%	23.8	21.6

To see how TRANSPORT CORP has performed over the last 5 years, please visit here.

TRANSPORT CORP Share Price Performance

Over the last one year, TRANSPORT CORP share price has moved up from Rs 599.7 to Rs 627.9, registering a gain of Rs 28.2 or around 4.7%.

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

(To know more, check out historical annual results for TRANSPORT CORP and quarterly results for TRANSPORT CORP)