TUBE INVESTMENTS OF INDIA 2022-23 Annual Report Analysis

Wed, 12 Jul

TUBE INVESTMENTS OF INDIA 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.

TUBE INVESTMENTS OF INDIA Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY23 as against 11.8% in FY22.
• Depreciation charges increased by 14.2% and finance costs decreased by 41.6% YoY, respectively.
• Other income grew by 37.2% YoY.
• Net profit for the year grew by 19.7% YoY.
• Net profit margins during the year declined from 7.8% in FY22 to 7.7% in FY23.

TUBE INVESTMENTS OF INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	124,474	149,647	20.2%
Other income	Rs m	1,044	1,433	37.2%
Total Revenues	Rs m	125,519	151,080	20.4%
Gross profit	Rs m	14,695	18,914	28.7%
Depreciation	Rs m	3,466	3,959	14.2%
Interest	Rs m	989	578	-41.6%
Profit before tax	Rs m	11,284	15,810	40.1%
Tax	Rs m	1,608	4,226	162.8%
Profit after tax	Rs m	9,676	11,584	19.7%
Gross profit margin	%	11.8	12.6
Effective tax rate	%	14.3	26.7
Net profit margin	%	7.8	7.7

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TUBE INVESTMENTS OF INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 40 billion as compared to Rs 47 billion in FY22, thereby witnessing an decrease of -14.9%.
• Long-term debt down at Rs 442 million as compared to Rs 3 billion during FY22, a fall of 87.2%.
• Current assets rose 26% and stood at Rs 58 billion, while fixed assets rose 5% and stood at Rs 40 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 99 billion as against Rs 84 billion during FY22, thereby witnessing a growth of 19%.

TUBE INVESTMENTS OF INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,635	39,358	28.5
Current Liabilities	Rs m	46,964	39,947	-14.9
Long-term Debt	Rs m	3,453	442	-87.2
Total Liabilities	Rs m	83,679	99,170	18.5
Current assets	Rs m	45,813	57,746	26.0
Fixed Assets	Rs m	37,786	39,525	4.6
Total Assets	Rs m	83,679	99,170	18.5

TUBE INVESTMENTS OF INDIA Cash Flow Statement Analysis

• TUBE INVESTMENTS OF INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 54.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 1,007.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -747 million, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 billion from the Rs -1 billion net cash flows seen during FY22.

TUBE INVESTMENTS OF INDIA 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	8,956	13,857	54.7%
Cash Flow from Investing Activities	Rs m	-787	-8,713	-
Cash Flow from Financing Activities	Rs m	-9,209	-747	-
Net Cash Flow	Rs m	-1,040	4,611	-

Current Valuations for TUBE INVESTMENTS OF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.0, an improvement from the EPS of Rs 50.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,231.9, stands at 52.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.9 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 28.0 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	645.1	774.9
TTM Earnings per share	Rs	50.1	60.0
Diluted earnings per share	Rs	50.1	59.9
Price to Cash Flow	x	23.8	28.0
TTM P/E ratio	x	31.6	52.9
Price / Book Value ratio	x	9.7	11.1
Market Cap	Rs m	296,468	435,000
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for TUBE INVESTMENTS OF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.0x 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 28.4x during FY23, from 12.4x 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 29.4% during FY23, from 31.6% 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 improved and stood at 41.2% during FY23, from 36.0% 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 12.3% during FY23, from 12.7% 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	1.0	1.4
Debtors’ Days	Days	5	5
Interest coverage	x	12.4	28.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.7	12.3
Return on equity	%	31.6	29.4
Return on capital employed	%	36.0	41.2

To see how TUBE INVESTMENTS OF INDIA has performed over the last 5 years, please visit here.

TUBE INVESTMENTS OF INDIA Share Price Performance

Over the last one year, TUBE INVESTMENTS OF INDIA share price has moved up from Rs 1,989.9 to Rs 3,231.9, registering a gain of Rs 1,242.0 or around 62.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 41,337.2 (up 0.1%). Over the last one year it has moved up from 27,225.4 to 41,337.2, a gain of 14,112 points (up 51.8%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for TUBE INVESTMENTS OF INDIA and quarterly results for TUBE INVESTMENTS OF INDIA)