TRANSPEK INDUSTRIES 2022-23 Annual Report Analysis

Fri, 31 Mar

TRANSPEK 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.

TRANSPEK INDUSTRIES Income Statement Analysis

• Operating income during the year rose 38.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.8% in FY23 as against 16.0% in FY22.
• Depreciation charges increased by 11.1% and finance costs increased by 82.5% YoY, respectively.
• Other income declined by 37.6% YoY.
• Net profit for the year grew by 27.6% YoY.
• Net profit margins during the year declined from 10.9% in FY22 to 10.1% in FY23.

TRANSPEK INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,991	8,269	38.0%
Other income	Rs m	286	179	-37.6%
Total Revenues	Rs m	6,277	8,448	34.6%
Gross profit	Rs m	959	1,472	53.5%
Depreciation	Rs m	297	330	11.1%
Interest	Rs m	105	192	82.5%
Profit before tax	Rs m	842	1,128	33.9%
Tax	Rs m	188	293	55.6%
Profit after tax	Rs m	654	835	27.6%
Gross profit margin	%	16.0	17.8
Effective tax rate	%	22.4	26.0
Net profit margin	%	10.9	10.1

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

TRANSPEK INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -18.2%.
• Long-term debt down at Rs 276 million as compared to Rs 348 million during FY22, a fall of 20.7%.
• Current assets fell 4% and stood at Rs 2 billion, while fixed assets rose 25% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 16%.

TRANSPEK INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,843	5,866	21.1
Current Liabilities	Rs m	1,658	1,356	-18.2
Long-term Debt	Rs m	348	276	-20.7
Total Liabilities	Rs m	7,641	8,869	16.1
Current assets	Rs m	2,441	2,344	-4.0
Fixed Assets	Rs m	5,200	6,525	25.5
Total Assets	Rs m	7,641	8,869	16.1

TRANSPEK INDUSTRIES Cash Flow Statement Analysis

• TRANSPEK INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 135.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -130 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -939 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 39 million from the Rs -138 million net cash flows seen during FY22.

TRANSPEK 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	471	1,108	135.3%
Cash Flow from Investing Activities	Rs m	-701	-130	-
Cash Flow from Financing Activities	Rs m	92	-939	-
Net Cash Flow	Rs m	-138	39	-

Current Valuations for TRANSPEK INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 149.3, an improvement from the EPS of Rs 117.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,470.9, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 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	1,071.8	1,479.2
TTM Earnings per share	Rs	117.0	149.3
Diluted earnings per share	Rs	117.1	149.5
Price to Cash Flow	x	11.5	8.2
TTM P/E ratio	x	16.7	9.8
Price / Book Value ratio	x	2.3	1.6
Market Cap	Rs m	11,153	9,540
Dividends per share (Unadj.)	Rs	22.5	27.5

Ratio Analysis for TRANSPEK INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.5x 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 6.9x during FY23, from 9.0x 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 14.2% during FY23, from 13.5% 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 21.5% during FY23, from 18.3% 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 improved and stood at 11.6% during FY23, from 9.9% 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	1.5	1.7
Debtors’ Days	Days	604	522
Interest coverage	x	9.0	6.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.9	11.6
Return on equity	%	13.5	14.2
Return on capital employed	%	18.3	21.5

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

TRANSPEK INDUSTRIES Share Price Performance

Over the last one year, TRANSPEK INDUSTRIES share price has moved down from Rs 1,950.5 to Rs 1,470.9, registering a loss of Rs 479.6 or around 24.6%.

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

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