TITAGARH RAILSYSTEMS 2022-23 Annual Report Analysis

Tue, 26 Sep

TITAGARH RAILSYSTEMS 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.

TITAGARH RAILSYSTEMS Income Statement Analysis

• Operating income during the year rose 89.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 59.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY23 as against 10.7% in FY22.
• Depreciation charges increased by 22.4% and finance costs increased by 41.0% YoY, respectively.
• Other income grew by 66.7% YoY.
• Net profit for the year grew by 73.1% YoY.
• Net profit margins during the year declined from 5.3% in FY22 to 4.8% in FY23.

TITAGARH RAILSYSTEMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,675	27,796	89.4%
Other income	Rs m	259	432	66.7%
Total Revenues	Rs m	14,934	28,228	89.0%
Gross profit	Rs m	1,567	2,502	59.6%
Depreciation	Rs m	184	225	22.4%
Interest	Rs m	573	807	41.0%
Profit before tax	Rs m	1,070	1,901	77.7%
Tax	Rs m	292	555	90.0%
Profit after tax	Rs m	778	1,346	73.1%
Gross profit margin	%	10.7	9.0
Effective tax rate	%	27.3	29.2
Net profit margin	%	5.3	4.8

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TITAGARH RAILSYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 11 billion as compared to Rs 13 billion in FY22, thereby witnessing an decrease of -10.9%.
• Long-term debt down at Rs 496 million as compared to Rs 5 billion during FY22, a fall of 90.0%.
• Current assets fell 8% and stood at Rs 14 billion, while fixed assets fell 15% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 29 billion during FY22, thereby witnessing a fall of 12%.

TITAGARH RAILSYSTEMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,421	9,636	14.4
Current Liabilities	Rs m	12,770	11,375	-10.9
Long-term Debt	Rs m	4,956	496	-90.0
Total Liabilities	Rs m	28,617	25,315	-11.5
Current assets	Rs m	15,122	13,895	-8.1
Fixed Assets	Rs m	13,495	11,413	-15.4
Total Assets	Rs m	28,617	25,315	-11.5

TITAGARH RAILSYSTEMS Cash Flow Statement Analysis

• TITAGARH RAILSYSTEMS's cash flow from operating activities (CFO) during FY23 stood at Rs 409 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -614 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 665 million, an improvement of 226% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 464 million from the Rs -707 million net cash flows seen during FY22.

TITAGARH RAILSYSTEMS 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	546	409	-25.0%
Cash Flow from Investing Activities	Rs m	-695	-614	-
Cash Flow from Financing Activities	Rs m	-527	665	-
Net Cash Flow	Rs m	-707	464	-

Current Valuations for TITAGARH RAILSYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, an improvement from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 764.9, stands at 51.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.1 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	122.8	232.6
TTM Earnings per share	Rs	6.5	11.3
Diluted earnings per share	Rs	6.1	10.6
Price to Cash Flow	x	13.4	13.6
TTM P/E ratio	x	17.2	51.8
Price / Book Value ratio	x	1.2	2.2
Market Cap	Rs m	10,099	21,403
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for TITAGARH RAILSYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 3.4x during FY23, from 2.9x 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 14.0% during FY23, from 9.2% 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 26.7% during FY23, from 12.3% 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 8.5% during FY23, from 4.7% 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	1.2	1.2
Debtors’ Days	Days	578	367
Interest coverage	x	2.9	3.4
Debt to equity ratio	x	0.6	0.1
Return on assets	%	4.7	8.5
Return on equity	%	9.2	14.0
Return on capital employed	%	12.3	26.7

To see how TITAGARH RAILSYSTEMS has performed over the last 5 years, please visit here.

TITAGARH RAILSYSTEMS Share Price Performance

Over the last one year, TITAGARH RAILSYSTEMS share price has moved up from Rs 144.4 to Rs 764.9, registering a gain of Rs 620.6 or around 429.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 46,831.1 (up 0.5%). Over the last one year it has moved up from 31,036.5 to 46,831.1, a gain of 15,795 points (up 50.9%).

Overall, the S&P BSE SENSEX is up 11.6% over the year.

(To know more, check out historical annual results for TITAGARH RAILSYSTEMS and quarterly results for TITAGARH RAILSYSTEMS)