UNIVERSAL CABLES 2022-23 Annual Report Analysis

Mon, 21 Aug

UNIVERSAL CABLES 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.

UNIVERSAL CABLES Income Statement Analysis

• Operating income during the year rose 21.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY23 as against 10.0% in FY22.
• Depreciation charges decreased by 7.7% and finance costs increased by 25.3% YoY, respectively.
• Other income declined by 9.6% YoY.
• Net profit for the year grew by 57.7% YoY.
• Net profit margins during the year grew from 4.1% in FY22 to 5.4% in FY23.

UNIVERSAL CABLES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,135	22,020	21.4%
Other income	Rs m	195	176	-9.6%
Total Revenues	Rs m	18,330	22,196	21.1%
Gross profit	Rs m	1,812	2,538	40.1%
Depreciation	Rs m	244	225	-7.7%
Interest	Rs m	777	974	25.3%
Profit before tax	Rs m	986	1,515	53.7%
Tax	Rs m	236	334	41.1%
Profit after tax	Rs m	749	1,182	57.7%
Gross profit margin	%	10.0	11.5
Effective tax rate	%	24.0	22.0
Net profit margin	%	4.1	5.4

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

UNIVERSAL CABLES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 10 billion in FY22, thereby witnessing an decrease of -18.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 1.8%.
• Current assets fell 7% and stood at Rs 13 billion, while fixed assets rose 10% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 28 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 2%.

UNIVERSAL CABLES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,948	14,966	15.6
Current Liabilities	Rs m	9,611	7,819	-18.6
Long-term Debt	Rs m	2,355	2,398	1.8
Total Liabilities	Rs m	27,581	28,103	1.9
Current assets	Rs m	13,559	12,649	-6.7
Fixed Assets	Rs m	14,022	15,454	10.2
Total Assets	Rs m	27,581	28,103	1.9

UNIVERSAL CABLES Cash Flow Statement Analysis

• UNIVERSAL CABLES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -152 million, an improvement of 130.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs -26 million net cash flows seen during FY22.

UNIVERSAL CABLES 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	-122	1,430	-
Cash Flow from Investing Activities	Rs m	-66	-152	-
Cash Flow from Financing Activities	Rs m	162	-1,273	-
Net Cash Flow	Rs m	-26	5	-

Current Valuations for UNIVERSAL CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.0, an improvement from the EPS of Rs 21.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 401.1, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.3 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	522.6	634.6
TTM Earnings per share	Rs	21.6	34.0
Diluted earnings per share	Rs	21.6	34.1
Price to Cash Flow	x	4.8	6.3
TTM P/E ratio	x	28.7	32.9
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	5,908	8,862
Dividends per share (Unadj.)	Rs	1.5	3.0

Ratio Analysis for UNIVERSAL CABLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.4x 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 2.6x during FY23, from 2.3x 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 7.9% during FY23, from 5.8% 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 14.3% during FY23, from 11.5% 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 7.7% during FY23, from 5.5% 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	1.4	1.6
Debtors’ Days	Days	1,948	1,475
Interest coverage	x	2.3	2.6
Debt to equity ratio	x	0.2	0.2
Return on assets	%	5.5	7.7
Return on equity	%	5.8	7.9
Return on capital employed	%	11.5	14.3

To see how UNIVERSAL CABLES has performed over the last 5 years, please visit here.

UNIVERSAL CABLES Share Price Performance

Over the last one year, UNIVERSAL CABLES share price has moved up from Rs 215.6 to Rs 401.1, registering a gain of Rs 185.5 or around 86.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,341.0 (up 2.0%). Over the last one year it has moved down from 5,038.1 to 4,341.0, a loss of 697 points (down 13.8%).

Overall, the S&P BSE SENSEX is up 8.3% over the year.

(To know more, check out historical annual results for UNIVERSAL CABLES and quarterly results for UNIVERSAL CABLES)