DEEPAK SPINN 2022-23 Annual Report Analysis

Tue, 20 Jun

DEEPAK SPINN 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.

DEEPAK SPINN Income Statement Analysis

• Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY23 as against 13.1% in FY22.
• Depreciation charges increased by 2.1% and finance costs decreased by 34.3% YoY, respectively.
• Other income declined by 20.3% YoY.
• Net profit for the year grew by 2.0% YoY.
• Net profit margins during the year declined from 7.4% in FY22 to 7.1% in FY23.

DEEPAK SPINN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,315	5,614	5.6%
Other income	Rs m	32	26	-20.3%
Total Revenues	Rs m	5,348	5,639	5.5%
Gross profit	Rs m	694	703	1.3%
Depreciation	Rs m	157	160	2.1%
Interest	Rs m	44	29	-34.3%
Profit before tax	Rs m	526	540	2.7%
Tax	Rs m	133	139	4.7%
Profit after tax	Rs m	393	401	2.0%
Gross profit margin	%	13.1	12.5
Effective tax rate	%	25.3	25.8
Net profit margin	%	7.4	7.1

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DEEPAK SPINN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 945 million as compared to Rs 840 million in FY22, thereby witnessing an increase of 12.5%.
• Long-term debt down at Rs 36 million as compared to Rs 89 million during FY22, a fall of 59.4%.
• Current assets rose 15% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 15%.

DEEPAK SPINN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,970	2,356	19.6
Current Liabilities	Rs m	840	945	12.5
Long-term Debt	Rs m	89	36	-59.4
Total Liabilities	Rs m	3,045	3,487	14.5
Current assets	Rs m	1,328	1,524	14.8
Fixed Assets	Rs m	1,717	1,963	14.3
Total Assets	Rs m	3,045	3,487	14.5

DEEPAK SPINN Cash Flow Statement Analysis

• DEEPAK SPINN's cash flow from operating activities (CFO) during FY23 stood at Rs 417 million, an improvement of 7.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -375 million, an improvement of 43.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -40 million, an improvement of 70% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs -5 million net cash flows seen during FY22.

DEEPAK SPINN 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	388	417	7.5%
Cash Flow from Investing Activities	Rs m	-262	-375	-
Cash Flow from Financing Activities	Rs m	-131	-40	-
Net Cash Flow	Rs m	-5	3	-

Current Valuations for DEEPAK SPINN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.8, an improvement from the EPS of Rs 54.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 241.0, stands at 4.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 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	739.3	780.8
TTM Earnings per share	Rs	54.6	55.8
Diluted earnings per share	Rs	54.8	55.9
Price to Cash Flow	x	3.6	3.2
TTM P/E ratio	x	5.1	4.3
Price / Book Value ratio	x	1.0	0.8
Market Cap	Rs m	1,980	1,809
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for DEEPAK SPINN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.6x 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 19.8x during FY23, from 13.0x 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 17.0% during FY23, from 19.9% 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 23.8% during FY23, from 27.7% 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 12.3% during FY23, from 14.3% 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	1.6	1.6
Debtors’ Days	Days	228	193
Interest coverage	x	13.0	19.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.3	12.3
Return on equity	%	19.9	17.0
Return on capital employed	%	27.7	23.8

To see how DEEPAK SPINN has performed over the last 5 years, please visit here.

DEEPAK SPINN Share Price Performance

Over the last one year, DEEPAK SPINN share price has moved up from Rs 200.5 to Rs 241.0, registering a gain of Rs 40.5 or around 20.2%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for DEEPAK SPINN and quarterly results for DEEPAK SPINN)