TCPL PACKAGING 2022-23 Annual Report Analysis

Mon, 17 Jul

TCPL PACKAGING 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.

TCPL PACKAGING Income Statement Analysis

• Operating income during the year rose 35.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY23 as against 14.2% in FY22.
• Depreciation charges increased by 14.3% and finance costs increased by 38.4% YoY, respectively.
• Other income grew by 167.6% YoY.
• Net profit for the year grew by 135.6% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 7.5% in FY23.

TCPL PACKAGING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,857	14,749	35.8%
Other income	Rs m	36	96	167.6%
Total Revenues	Rs m	10,893	14,845	36.3%
Gross profit	Rs m	1,544	2,534	64.1%
Depreciation	Rs m	559	639	14.3%
Interest	Rs m	343	475	38.4%
Profit before tax	Rs m	678	1,516	123.7%
Tax	Rs m	209	411	97.0%
Profit after tax	Rs m	469	1,104	135.6%
Gross profit margin	%	14.2	17.2
Effective tax rate	%	30.8	27.1
Net profit margin	%	4.3	7.5

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TCPL PACKAGING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 16.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 7.4%.
• Current assets rose 28% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 15%.

TCPL PACKAGING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,399	4,417	29.9
Current Liabilities	Rs m	4,730	5,506	16.4
Long-term Debt	Rs m	2,087	1,932	-7.4
Total Liabilities	Rs m	10,901	12,553	15.1
Current assets	Rs m	4,784	6,106	27.6
Fixed Assets	Rs m	6,117	6,447	5.4
Total Assets	Rs m	10,901	12,553	15.1

TCPL PACKAGING Cash Flow Statement Analysis

• TCPL PACKAGING's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 12.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -900 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -217 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -23 million from the Rs 33 million net cash flows seen during FY22.

TCPL PACKAGING 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	970	1,093	12.8%
Cash Flow from Investing Activities	Rs m	-1,952	-900	-
Cash Flow from Financing Activities	Rs m	1,015	-217	-
Net Cash Flow	Rs m	33	-23	-

Current Valuations for TCPL PACKAGING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 121.4, an improvement from the EPS of Rs 51.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,570.0, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	1,193.1	1,620.8
TTM Earnings per share	Rs	51.5	121.4
Diluted earnings per share	Rs	51.5	121.4
Price to Cash Flow	x	6.4	6.4
TTM P/E ratio	x	14.0	12.9
Price / Book Value ratio	x	1.6	2.5
Market Cap	Rs m	5,469	11,141
Dividends per share (Unadj.)	Rs	10.0	20.0

Ratio Analysis for TCPL PACKAGING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 4.2x during FY23, from 3.0x 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 25.0% during FY23, from 13.8% 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 31.4% during FY23, from 18.6% 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 12.6% during FY23, from 7.4% 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	1.1
Debtors’ Days	Days	765	731
Interest coverage	x	3.0	4.2
Debt to equity ratio	x	0.6	0.4
Return on assets	%	7.4	12.6
Return on equity	%	13.8	25.0
Return on capital employed	%	18.6	31.4

To see how TCPL PACKAGING has performed over the last 5 years, please visit here.

TCPL PACKAGING Share Price Performance

Over the last one year, TCPL PACKAGING share price has moved up from Rs 1,019.9 to Rs 1,570.0, registering a gain of Rs 550.1 or around 53.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for TCPL PACKAGING and quarterly results for TCPL PACKAGING)