UCAL FUEL 2022-23 Annual Report Analysis

Fri, 31 Mar

UCAL FUEL 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.

UCAL FUEL Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY23 as against 9.3% in FY22.
• Depreciation charges decreased by 7.9% and finance costs decreased by 4.4% YoY, respectively.
• Other income declined by 70.3% YoY.
• Net profit for the year declined by 97.6% YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 0.1% in FY23.

UCAL FUEL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,823	8,230	5.2%
Other income	Rs m	307	91	-70.3%
Total Revenues	Rs m	8,130	8,321	2.4%
Gross profit	Rs m	728	574	-21.1%
Depreciation	Rs m	413	380	-7.9%
Interest	Rs m	231	221	-4.4%
Profit before tax	Rs m	390	64	-83.5%
Tax	Rs m	41	56	34.7%
Profit after tax	Rs m	349	9	-97.6%
Gross profit margin	%	9.3	7.0
Effective tax rate	%	10.6	86.8
Net profit margin	%	4.5	0.1

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UCAL FUEL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 9.5%.
• Long-term debt down at Rs 623 million as compared to Rs 769 million during FY22, a fall of 19.0%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets fell 0% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 1%.

UCAL FUEL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,915	3,933	0.5
Current Liabilities	Rs m	2,774	3,037	9.5
Long-term Debt	Rs m	769	623	-19.0
Total Liabilities	Rs m	7,408	7,473	0.9
Current assets	Rs m	2,248	2,328	3.5
Fixed Assets	Rs m	5,160	5,146	-0.3
Total Assets	Rs m	7,408	7,473	0.9

UCAL FUEL Cash Flow Statement Analysis

• UCAL FUEL's cash flow from operating activities (CFO) during FY23 stood at Rs 782 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -332 million, an improvement of 12.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -89 million, an improvement of 89% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 409 million from the Rs -289 million net cash flows seen during FY22.

UCAL FUEL 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	805	782	-2.9%
Cash Flow from Investing Activities	Rs m	-295	-332	-
Cash Flow from Financing Activities	Rs m	-826	-89	-
Net Cash Flow	Rs m	-289	409	-

Current Valuations for UCAL FUEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 15.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.4, stands at 282.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	353.8	372.2
TTM Earnings per share	Rs	15.8	0.4
Diluted earnings per share	Rs	15.8	0.4
Price to Cash Flow	x	3.2	7.2
TTM P/E ratio	x	7.1	282.5
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	3,484	2,784
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for UCAL FUEL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 0.8x 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 1.3x 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 declined and down at 0.2% during FY23, from 8.9% 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 6.3% during FY23, from 13.3% 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 declined and down at 3.1% during FY23, from 7.8% 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	0.8	0.8
Debtors’ Days	Days	452	527
Interest coverage	x	2.7	1.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.8	3.1
Return on equity	%	8.9	0.2
Return on capital employed	%	13.3	6.3

To see how UCAL FUEL has performed over the last 5 years, please visit here.

UCAL FUEL Share Price Performance

Over the last one year, UCAL FUEL share price has moved down from Rs 112.0 to Rs 108.4, registering a loss of Rs 3.6 or around 3.2%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for UCAL FUEL and quarterly results for UCAL FUEL)