TVS SRICHAKRA 2022-23 Annual Report Analysis

Thu, 31 Aug

TVS SRICHAKRA 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 SRICHAKRA Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY23 as against 6.6% in FY22.
• Depreciation charges increased by 14.7% and finance costs increased by 28.9% YoY, respectively.
• Other income grew by 42.0% YoY.
• Net profit for the year grew by 79.6% YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 2.6% in FY23.

TVS SRICHAKRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	25,429	29,850	17.4%
Other income	Rs m	65	92	42.0%
Total Revenues	Rs m	25,494	29,941	17.4%
Gross profit	Rs m	1,668	2,281	36.7%
Depreciation	Rs m	798	915	14.7%
Interest	Rs m	344	443	28.9%
Profit before tax	Rs m	591	1,014	71.6%
Tax	Rs m	158	236	49.5%
Profit after tax	Rs m	433	778	79.6%
Gross profit margin	%	6.6	7.6
Effective tax rate	%	26.7	23.3
Net profit margin	%	1.7	2.6

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TVS SRICHAKRA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 16.7%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY22, a fall of 10.8%.
• Current assets fell 5% and stood at Rs 11 billion, while fixed assets rose 12% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 4%.

TVS SRICHAKRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,708	10,342	6.5
Current Liabilities	Rs m	8,578	10,010	16.7
Long-term Debt	Rs m	3,634	3,243	-10.8
Total Liabilities	Rs m	23,591	24,530	4.0
Current assets	Rs m	11,248	10,646	-5.4
Fixed Assets	Rs m	12,343	13,884	12.5
Total Assets	Rs m	23,591	24,530	4.0

TVS SRICHAKRA Cash Flow Statement Analysis

• TVS SRICHAKRA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 38 million from the Rs 40 million net cash flows seen during FY22.

TVS SRICHAKRA 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	-621	2,056	-
Cash Flow from Investing Activities	Rs m	-2,821	-2,020	-
Cash Flow from Financing Activities	Rs m	3,483	3	-99.9%
Net Cash Flow	Rs m	40	38	-5.2%

Current Valuations for TVS SRICHAKRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 101.6, an improvement from the EPS of Rs 56.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,882.6, stands at 21.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	3,319.7	3,896.8
TTM Earnings per share	Rs	56.6	101.6
Diluted earnings per share	Rs	56.6	101.6
Price to Cash Flow	x	9.9	11.7
TTM P/E ratio	x	28.2	21.9
Price / Book Value ratio	x	1.6	1.9
Market Cap	Rs m	15,957	19,793
Dividends per share (Unadj.)	Rs	16.3	32.1

Ratio Analysis for TVS SRICHAKRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.3x 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 3.3x during FY23, from 2.7x 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 improved and stood at 7.5% during FY23, from 4.5% 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 10.7% during FY23, from 7.0% 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 improved and stood at 5.0% during FY23, from 3.3% 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	1.3	1.1
Debtors’ Days	Days	3	3
Interest coverage	x	2.7	3.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	3.3	5.0
Return on equity	%	4.5	7.5
Return on capital employed	%	7.0	10.7

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

TVS SRICHAKRA Share Price Performance

Over the last one year, TVS SRICHAKRA share price has moved up from Rs 2,166.7 to Rs 2,882.6, registering a gain of Rs 715.9 or around 33.0%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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