TEXMACO RAIL 2022-23 Annual Report Analysis

Mon, 11 Sep

TEXMACO RAIL 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.

TEXMACO RAIL Income Statement Analysis

• Operating income during the year rose 38.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 59.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY23 as against 4.5% in FY22.
• Depreciation charges decreased by 2.2% and finance costs increased by 15.9% YoY, respectively.
• Other income declined by 38.3% YoY.
• Net profit for the year declined by 5.6% YoY.
• Net profit margins during the year declined from 0.8% in FY22 to 0.5% in FY23.

TEXMACO RAIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,217	22,433	38.3%
Other income	Rs m	898	554	-38.3%
Total Revenues	Rs m	17,116	22,987	34.3%
Gross profit	Rs m	728	1,164	59.9%
Depreciation	Rs m	360	352	-2.2%
Interest	Rs m	1,002	1,162	15.9%
Profit before tax	Rs m	264	204	-22.7%
Tax	Rs m	142	89	-37.4%
Profit after tax	Rs m	122	115	-5.6%
Gross profit margin	%	4.5	5.2
Effective tax rate	%	53.7	43.5
Net profit margin	%	0.8	0.5

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TEXMACO RAIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 17 billion as compared to Rs 12 billion in FY22, thereby witnessing an increase of 48.7%.
• Long-term debt stood at Rs 2 billion as compared to Rs 477 million during FY22, a growth of 243.3%.
• Current assets rose 30% and stood at Rs 27 billion, while fixed assets rose 21% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 33 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 28%.

TEXMACO RAIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,187	13,922	5.6
Current Liabilities	Rs m	11,643	17,317	48.7
Long-term Debt	Rs m	477	1,636	243.3
Total Liabilities	Rs m	25,952	33,253	28.1
Current assets	Rs m	20,994	27,270	29.9
Fixed Assets	Rs m	4,958	5,983	20.7
Total Assets	Rs m	25,952	33,253	28.1

TEXMACO RAIL Cash Flow Statement Analysis

• TEXMACO RAIL's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -760 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 1,363% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -253 million from the Rs 335 million net cash flows seen during FY22.

TEXMACO RAIL 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	272	-1,028	-
Cash Flow from Investing Activities	Rs m	204	-760	-
Cash Flow from Financing Activities	Rs m	-120	1,510	-
Net Cash Flow	Rs m	335	-253	-

Current Valuations for TEXMACO RAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 161.1, stands at 116.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 35.1 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	50.4	69.7
TTM Earnings per share	Rs	0.4	0.4
Diluted earnings per share	Rs	0.4	0.4
Price to Cash Flow	x	27.8	35.1
TTM P/E ratio	x	109.9	116.7
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	11,885	16,407
Dividends per share (Unadj.)	Rs	0.1	0.2

Ratio Analysis for TEXMACO RAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.8x 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 1.2x during FY23, from 1.3x 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 declined and down at 0.8% during FY23, from 0.9% 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 8.8% during FY23, from 9.3% 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 3.8% 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	1.8	1.6
Debtors’ Days	Days	1,283	1,277
Interest coverage	x	1.3	1.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.3	3.8
Return on equity	%	0.9	0.8
Return on capital employed	%	9.3	8.8

To see how TEXMACO RAIL has performed over the last 5 years, please visit here.

TEXMACO RAIL Share Price Performance

Over the last one year, TEXMACO RAIL share price has moved up from Rs 52.2 to Rs 161.1, registering a gain of Rs 108.9 or around 208.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,821.9 (up 0.5%). Over the last one year it has moved up from 33,327.8 to 47,821.9, a gain of 14,494 points (up 43.5%).

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

(To know more, check out historical annual results for TEXMACO RAIL and quarterly results for TEXMACO RAIL)