YUKEN INDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

YUKEN INDIA 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.

YUKEN INDIA Income Statement Analysis

• Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY23 as against 10.3% in FY22.
• Depreciation charges increased by 20.3% and finance costs increased by 17.0% YoY, respectively.
• Other income declined by 13.7% YoY.
• Net profit for the year declined by 27.4% YoY.
• Net profit margins during the year declined from 4.0% in FY22 to 2.6% in FY23.

YUKEN INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,311	3,724	12.5%
Other income	Rs m	42	36	-13.7%
Total Revenues	Rs m	3,353	3,760	12.2%
Gross profit	Rs m	339	348	2.5%
Depreciation	Rs m	105	126	20.3%
Interest	Rs m	84	98	17.0%
Profit before tax	Rs m	193	160	-16.9%
Tax	Rs m	61	65	5.5%
Profit after tax	Rs m	131	95	-27.4%
Gross profit margin	%	10.3	9.3
Effective tax rate	%	31.8	40.4
Net profit margin	%	4.0	2.6

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YUKEN INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -19.7%.
• Long-term debt down at Rs 141 million as compared to Rs 154 million during FY22, a fall of 8.7%.
• Current assets fell 28% and stood at Rs 2 billion, while fixed assets rose 25% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 9%.

YUKEN INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,909	1,993	4.4
Current Liabilities	Rs m	2,673	2,146	-19.7
Long-term Debt	Rs m	154	141	-8.7
Total Liabilities	Rs m	4,799	4,379	-8.7
Current assets	Rs m	3,075	2,220	-27.8
Fixed Assets	Rs m	1,724	2,159	25.3
Total Assets	Rs m	4,799	4,379	-8.7

YUKEN INDIA Cash Flow Statement Analysis

• YUKEN INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 308 million, an improvement of 1,367.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -280 million, an improvement of 2,217.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -40 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -12 million from the Rs -22 million net cash flows seen during FY22.

YUKEN INDIA 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	21	308	1,367.1%
Cash Flow from Investing Activities	Rs m	-12	-280	-
Cash Flow from Financing Activities	Rs m	-31	-40	-
Net Cash Flow	Rs m	-22	-12	-

Current Valuations for YUKEN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an decline from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 510.7, stands at 69.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 27.4 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	275.9	310.4
TTM Earnings per share	Rs	11.0	8.0
Diluted earnings per share	Rs	10.1	7.3
Price to Cash Flow	x	30.6	27.4
TTM P/E ratio	x	55.0	69.5
Price / Book Value ratio	x	3.4	3.0
Market Cap	Rs m	6,557	6,054
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for YUKEN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 deteriorated and stood at 2.6x during FY23, from 3.3x 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 declined and down at 4.8% during FY23, from 6.9% 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 12.1% during FY23, from 13.4% 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 4.4% during FY23, from 4.5% 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	1.2	1.0
Debtors’ Days	Days	1,305	1,125
Interest coverage	x	3.3	2.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.5	4.4
Return on equity	%	6.9	4.8
Return on capital employed	%	13.4	12.1

To see how YUKEN INDIA has performed over the last 5 years, please visit here.

YUKEN INDIA Share Price Performance

Over the last one year, YUKEN INDIA share price has moved down from Rs 556.2 to Rs 510.7, registering a loss of Rs 45.5 or around 8.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

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

(To know more, check out historical annual results for YUKEN INDIA and quarterly results for YUKEN INDIA)