ORIENT BELL 2022-23 Annual Report Analysis

Wed, 12 Jul

ORIENT BELL 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.

ORIENT BELL Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY23 as against 8.7% in FY22.
• Depreciation charges increased by 2.4% and finance costs decreased by 41.7% YoY, respectively.
• Other income grew by 77.4% YoY.
• Net profit for the year declined by 30.1% YoY.
• Net profit margins during the year declined from 4.9% in FY22 to 3.2% in FY23.

ORIENT BELL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,543	7,051	7.8%
Other income	Rs m	30	54	77.4%
Total Revenues	Rs m	6,573	7,105	8.1%
Gross profit	Rs m	569	480	-15.6%
Depreciation	Rs m	206	211	2.4%
Interest	Rs m	41	24	-41.7%
Profit before tax	Rs m	351	299	-15.0%
Tax	Rs m	30	74	150.2%
Profit after tax	Rs m	322	225	-30.1%
Gross profit margin	%	8.7	6.8
Effective tax rate	%	8.4	24.7
Net profit margin	%	4.9	3.2

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ORIENT BELL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 1.3%.
• Current assets fell 7% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 6%.

ORIENT BELL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,818	3,048	8.2
Current Liabilities	Rs m	1,400	1,419	1.3
Long-term Debt	Rs m	19	0	-100.0
Total Liabilities	Rs m	4,654	4,922	5.7
Current assets	Rs m	2,334	2,174	-6.9
Fixed Assets	Rs m	2,320	2,748	18.4
Total Assets	Rs m	4,654	4,922	5.7

ORIENT BELL Cash Flow Statement Analysis

• ORIENT BELL's cash flow from operating activities (CFO) during FY23 stood at Rs 344 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -210 million, an improvement of 70.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -134 million, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 25 million net cash flows seen during FY22.

ORIENT BELL 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	438	344	-21.5%
Cash Flow from Investing Activities	Rs m	-123	-210	-
Cash Flow from Financing Activities	Rs m	-290	-134	-
Net Cash Flow	Rs m	25	0	-100.1%

Current Valuations for ORIENT BELL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.5, an decline from the EPS of Rs 22.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 531.3, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.4 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	453.4	486.6
TTM Earnings per share	Rs	22.3	15.5
Diluted earnings per share	Rs	22.2	15.5
Price to Cash Flow	x	13.9	19.4
TTM P/E ratio	x	23.6	35.4
Price / Book Value ratio	x	2.2	2.8
Market Cap	Rs m	6,270	8,447
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ORIENT BELL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.7x 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 13.4x during FY23, from 9.5x 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 7.4% during FY23, from 11.4% 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 10.6% during FY23, from 13.8% 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 5.1% during FY23, from 7.8% 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	1.7	1.5
Debtors’ Days	Days	576	576
Interest coverage	x	9.5	13.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	5.1
Return on equity	%	11.4	7.4
Return on capital employed	%	13.8	10.6

To see how ORIENT BELL has performed over the last 5 years, please visit here.

ORIENT BELL Share Price Performance

Over the last one year, ORIENT BELL share price has moved down from Rs 742.9 to Rs 531.3, registering a loss of Rs 211.7 or around 28.5%.

Overall, the S&P BSE SENSEX is up 20.7% over the year.

(To know more, check out historical annual results for ORIENT BELL and quarterly results for ORIENT BELL)