TATA METALIK 2022-23 Annual Report Analysis

Thu, 15 Jun

TATA METALIK 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.

TATA METALIK Income Statement Analysis

• Operating income during the year rose 18.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 25.3% and finance costs increased by 32.9% YoY, respectively.
• Other income declined by 42.6% YoY.
• Net profit for the year declined by 66.2% YoY.
• Net profit margins during the year declined from 8.7% in FY22 to 2.5% in FY23.

TATA METALIK Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,455	32,596	18.7%
Other income	Rs m	252	145	-42.6%
Total Revenues	Rs m	27,707	32,740	18.2%
Gross profit	Rs m	4,013	1,974	-50.8%
Depreciation	Rs m	617	773	25.3%
Interest	Rs m	255	339	32.9%
Profit before tax	Rs m	3,393	1,007	-70.3%
Tax	Rs m	1,013	202	-80.1%
Profit after tax	Rs m	2,381	805	-66.2%
Gross profit margin	%	14.6	6.1
Effective tax rate	%	29.8	20.0
Net profit margin	%	8.7	2.5

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TATA METALIK Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 17.3%.
• Current assets rose 4% and stood at Rs 11 billion, while fixed assets rose 9% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 7%.

TATA METALIK Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,253	15,795	3.6
Current Liabilities	Rs m	6,086	7,141	17.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	23,492	25,059	6.7
Current assets	Rs m	10,818	11,253	4.0
Fixed Assets	Rs m	12,674	13,806	8.9
Total Assets	Rs m	23,492	25,059	6.7

TATA METALIK Cash Flow Statement Analysis

• TATA METALIK's cash flow from operating activities (CFO) during FY23 stood at Rs 920 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 45 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -680 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 285 million from the Rs 335 million net cash flows seen during FY22.

TATA METALIK 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	4,703	920	-80.4%
Cash Flow from Investing Activities	Rs m	-3,807	45	-
Cash Flow from Financing Activities	Rs m	-561	-680	-
Net Cash Flow	Rs m	335	285	-14.9%

Current Valuations for TATA METALIK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.5, an decline from the EPS of Rs 75.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 812.8, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.4 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	869.4	1,032.2
TTM Earnings per share	Rs	75.4	25.5
Diluted earnings per share	Rs	75.4	25.5
Price to Cash Flow	x	8.1	15.4
TTM P/E ratio	x	10.2	31.9
Price / Book Value ratio	x	2.1	1.5
Market Cap	Rs m	32,672	24,381
Dividends per share (Unadj.)	Rs	8.0	5.0

Ratio Analysis for TATA METALIK

• 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 4.0x during FY23, from 14.3x 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 5.1% during FY23, from 15.6% 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 8.5% during FY23, from 23.9% 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 4.6% during FY23, from 11.2% 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	281	341
Interest coverage	x	14.3	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	4.6
Return on equity	%	15.6	5.1
Return on capital employed	%	23.9	8.5

To see how TATA METALIK has performed over the last 5 years, please visit here.

TATA METALIK Share Price Performance

Over the last one year, TATA METALIK share price has moved up from Rs 696.4 to Rs 812.8, registering a gain of Rs 116.5 or around 16.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,562.2 (down 0.1%). Over the last one year it has moved up from 16,817.0 to 20,562.2, a gain of 3,745 points (up 22.3%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

(To know more, check out historical annual results for TATA METALIK and quarterly results for TATA METALIK)