USHA MARTIN 2022-23 Annual Report Analysis

Mon, 17 Jul

USHA MARTIN 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.

USHA MARTIN Income Statement Analysis

• Operating income during the year rose 21.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY23 as against 15.5% in FY22.
• Depreciation charges decreased by 3.3% and finance costs decreased by 28.7% YoY, respectively.
• Other income declined by 32.5% YoY.
• Net profit for the year grew by 20.3% YoY.
• Net profit margins during the year declined from 10.8% in FY22 to 10.7% in FY23.

USHA MARTIN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,881	32,678	21.6%
Other income	Rs m	423	285	-32.5%
Total Revenues	Rs m	27,303	32,963	20.7%
Gross profit	Rs m	4,162	5,246	26.0%
Depreciation	Rs m	698	675	-3.3%
Interest	Rs m	425	303	-28.7%
Profit before tax	Rs m	3,463	4,554	31.5%
Tax	Rs m	549	1,048	91.0%
Profit after tax	Rs m	2,914	3,506	20.3%
Gross profit margin	%	15.5	16.1
Effective tax rate	%	15.8	23.0
Net profit margin	%	10.8	10.7

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

USHA MARTIN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 0.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 4.6%.
• Current assets rose 11% and stood at Rs 17 billion, while fixed assets rose 22% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 31 billion as against Rs 27 billion during FY22, thereby witnessing a growth of 15%.

USHA MARTIN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	16,937	20,308	19.9
Current Liabilities	Rs m	7,049	7,092	0.6
Long-term Debt	Rs m	1,885	1,973	4.6
Total Liabilities	Rs m	27,303	31,445	15.2
Current assets	Rs m	15,766	17,494	11.0
Fixed Assets	Rs m	11,408	13,952	22.3
Total Assets	Rs m	27,303	31,445	15.2

USHA MARTIN Cash Flow Statement Analysis

• USHA MARTIN's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 58.7% 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 -1 billion, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -42 million from the Rs 549 million net cash flows seen during FY22.

USHA MARTIN 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	1,586	2,516	58.7%
Cash Flow from Investing Activities	Rs m	557	-1,577	-
Cash Flow from Financing Activities	Rs m	-1,606	-1,011	-
Net Cash Flow	Rs m	549	-42	-

Current Valuations for USHA MARTIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 316.4, stands at 28.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.0 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	88.2	107.2
TTM Earnings per share	Rs	9.6	11.5
Diluted earnings per share	Rs	9.6	11.5
Price to Cash Flow	x	11.3	11.7
TTM P/E ratio	x	14.5	28.4
Price / Book Value ratio	x	1.5	2.4
Market Cap	Rs m	25,934	48,919
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for USHA MARTIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.2x 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 16.0x during FY23, from 9.2x 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 17.3% during FY23, from 17.2% 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 21.8% during FY23, from 20.7% 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 12.1% during FY23, from 12.2% 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	2.2	2.5
Debtors’ Days	Days	562	558
Interest coverage	x	9.2	16.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.2	12.1
Return on equity	%	17.2	17.3
Return on capital employed	%	20.7	21.8

To see how USHA MARTIN has performed over the last 5 years, please visit here.

USHA MARTIN Share Price Performance

Over the last one year, USHA MARTIN share price has moved up from Rs 126.9 to Rs 316.4, registering a gain of Rs 189.5 or around 149.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,445.2 (up 0.2%). Over the last one year it has moved up from 15,924.6 to 21,445.2, a gain of 5,521 points (up 34.7%).

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

(To know more, check out historical annual results for USHA MARTIN and quarterly results for USHA MARTIN)