UTI ASSET MANAGEMENT COMPANY 2022-23 Annual Report Analysis

Tue, 4 Jul

UTI ASSET MANAGEMENT COMPANY 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.

UTI ASSET MANAGEMENT COMPANY Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 48.3% in FY23 as against 52.9% in FY22.
• Depreciation charges increased by 8.5% and finance costs increased by 4.0% YoY, respectively.
• Other income grew by 183.6% YoY.
• Net profit for the year declined by 17.8% YoY.
• Net profit margins during the year declined from 40.5% in FY22 to 34.7% in FY23.

UTI ASSET MANAGEMENT COMPANY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,191	12,669	-4.0%
Other income	Rs m	82	232	183.6%
Total Revenues	Rs m	13,273	12,901	-2.8%
Gross profit	Rs m	6,980	6,119	-12.3%
Depreciation	Rs m	368	399	8.5%
Interest	Rs m	92	96	4.0%
Profit before tax	Rs m	6,602	5,856	-11.3%
Tax	Rs m	1,256	1,459	16.2%
Profit after tax	Rs m	5,346	4,397	-17.8%
Gross profit margin	%	52.9	48.3
Effective tax rate	%	19.0	24.9
Net profit margin	%	40.5	34.7

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UTI ASSET MANAGEMENT COMPANY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -14.0%.
• Current assets fell 13% and stood at Rs 6 billion, while fixed assets rose 7% and stood at Rs 38 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 44 billion as against Rs 42 billion during FY22, thereby witnessing a growth of 4%.

UTI ASSET MANAGEMENT COMPANY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	35,619	37,900	6.4
Current Liabilities	Rs m	3,574	3,073	-14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	42,410	44,069	3.9
Current assets	Rs m	6,836	5,969	-12.7
Fixed Assets	Rs m	35,574	38,100	7.1
Total Assets	Rs m	42,410	44,069	3.9

UTI ASSET MANAGEMENT COMPANY Cash Flow Statement Analysis

• UTI ASSET MANAGEMENT COMPANY's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 17.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -925 million, an improvement of 54.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 360 million from the Rs 620 million net cash flows seen during FY22.

UTI ASSET MANAGEMENT COMPANY 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	3,370	3,954	17.3%
Cash Flow from Investing Activities	Rs m	-598	-925	-
Cash Flow from Financing Activities	Rs m	-2,152	-2,669	-
Net Cash Flow	Rs m	620	360	-41.9%

Current Valuations for UTI ASSET MANAGEMENT COMPANY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.6, an decline from the EPS of Rs 42.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 784.5, stands at 22.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 7.9 times.
• The company's price to cash flow (P/CF) ratio stood at 21.2 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	103.9	99.8
TTM Earnings per share	Rs	42.1	34.6
Diluted earnings per share	Rs	42.1	34.6
Price to Cash Flow	x	22.1	21.2
TTM P/E ratio	x	23.6	22.5
Price / Book Value ratio	x	3.1	2.7
Market Cap	Rs m	111,242	101,765
Dividends per share (Unadj.)	Rs	21.0	22.0

Ratio Analysis for UTI ASSET MANAGEMENT COMPANY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.9x 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 62.3x during FY23, from 72.9x 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 declined and down at 11.6% during FY23, from 15.0% 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 15.7% during FY23, from 18.8% 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 10.2% during FY23, from 12.8% 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	1.9	1.9
Debtors’ Days	Days	2	3
Interest coverage	x	72.9	62.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	10.2
Return on equity	%	15.0	11.6
Return on capital employed	%	18.8	15.7

To see how UTI ASSET MANAGEMENT COMPANY has performed over the last 5 years, please visit here.

UTI ASSET MANAGEMENT COMPANY Share Price Performance

Over the last one year, UTI ASSET MANAGEMENT COMPANY share price has moved up from Rs 656.4 to Rs 784.5, registering a gain of Rs 128.1 or around 19.5%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for UTI ASSET MANAGEMENT COMPANY and quarterly results for UTI ASSET MANAGEMENT COMPANY)