TVS ELECTRON 2022-23 Annual Report Analysis

Wed, 19 Jul

TVS ELECTRON 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.

TVS ELECTRON Income Statement Analysis

• Operating income during the year rose 14.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY23 as against 8.7% in FY22.
• Depreciation charges increased by 12.0% and finance costs increased by 42.7% YoY, respectively.
• Other income grew by 24.4% YoY.
• Net profit for the year declined by 37.0% YoY.
• Net profit margins during the year declined from 4.9% in FY22 to 2.7% in FY23.

TVS ELECTRON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,079	3,535	14.8%
Other income	Rs m	12	15	24.4%
Total Revenues	Rs m	3,092	3,550	14.8%
Gross profit	Rs m	269	198	-26.5%
Depreciation	Rs m	63	71	12.0%
Interest	Rs m	10	14	42.7%
Profit before tax	Rs m	208	128	-38.3%
Tax	Rs m	57	33	-42.0%
Profit after tax	Rs m	151	95	-37.0%
Gross profit margin	%	8.7	5.6
Effective tax rate	%	27.5	25.9
Net profit margin	%	4.9	2.7

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

TVS ELECTRON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 3.4%.
• Long-term debt stood at Rs 62 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 5% and stood at Rs 2 billion, while fixed assets rose 20% and stood at Rs 658 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 9%.

TVS ELECTRON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	926	1,018	9.9
Current Liabilities	Rs m	1,055	1,091	3.4
Long-term Debt	Rs m	0	62	0.0
Total Liabilities	Rs m	2,016	2,201	9.2
Current assets	Rs m	1,468	1,543	5.1
Fixed Assets	Rs m	548	658	20.0
Total Assets	Rs m	2,016	2,201	9.2

TVS ELECTRON Cash Flow Statement Analysis

• TVS ELECTRON's cash flow from operating activities (CFO) during FY23 stood at Rs -83 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 61 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 9 million, an improvement of 124% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -13 million from the Rs 23 million net cash flows seen during FY22.

TVS ELECTRON 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	262	-83	-
Cash Flow from Investing Activities	Rs m	-202	61	-
Cash Flow from Financing Activities	Rs m	-38	9	-
Net Cash Flow	Rs m	23	-13	-

Current Valuations for TVS ELECTRON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.1, an decline from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 393.4, stands at 77.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 34.5 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	165.1	189.5
TTM Earnings per share	Rs	8.1	5.1
Diluted earnings per share	Rs	8.1	5.1
Price to Cash Flow	x	22.3	34.5
TTM P/E ratio	x	31.6	77.2
Price / Book Value ratio	x	4.0	5.6
Market Cap	Rs m	3,738	5,730
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for TVS ELECTRON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.4x 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 10.4x during FY23, from 22.7x 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 9.4% during FY23, from 16.3% 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 13.2% during FY23, from 23.5% 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 4.9% during FY23, from 8.0% 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	1.4	1.4
Debtors’ Days	Days	417	480
Interest coverage	x	22.7	10.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.0	4.9
Return on equity	%	16.3	9.4
Return on capital employed	%	23.5	13.2

To see how TVS ELECTRON has performed over the last 5 years, please visit here.

TVS ELECTRON Share Price Performance

Over the last one year, TVS ELECTRON share price has moved up from Rs 202.6 to Rs 393.4, registering a gain of Rs 190.9 or around 94.2%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for TVS ELECTRON and quarterly results for TVS ELECTRON)