TEGA INDUSTRIES 2022-23 Annual Report Analysis

Fri, 31 Mar

TEGA INDUSTRIES 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.

TEGA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 27.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY23 as against 19.6% in FY22.
• Depreciation charges increased by 6.5% and finance costs increased by 10.6% YoY, respectively.
• Other income declined by 10.7% YoY.
• Net profit for the year grew by 57.4% YoY.
• Net profit margins during the year grew from 12.3% in FY22 to 15.2% in FY23.

TEGA INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,518	12,140	27.6%
Other income	Rs m	242	216	-10.7%
Total Revenues	Rs m	9,760	12,356	26.6%
Gross profit	Rs m	1,868	2,749	47.1%
Depreciation	Rs m	387	412	6.5%
Interest	Rs m	173	192	10.6%
Profit before tax	Rs m	1,550	2,361	52.4%
Tax	Rs m	381	521	36.8%
Profit after tax	Rs m	1,169	1,840	57.4%
Gross profit margin	%	19.6	22.6
Effective tax rate	%	24.6	22.1
Net profit margin	%	12.3	15.2

Must See: A Powerful Investing Opportunity is Emerging this Election Year

TEGA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 14.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 614 million during FY22, a growth of 130.7%.
• Current assets rose 24% and stood at Rs 10 billion, while fixed assets rose 74% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 40%.

TEGA INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,360	10,490	42.5
Current Liabilities	Rs m	3,433	3,922	14.2
Long-term Debt	Rs m	614	1,416	130.7
Total Liabilities	Rs m	11,560	16,179	40.0
Current assets	Rs m	7,974	9,922	24.4
Fixed Assets	Rs m	3,586	6,256	74.5
Total Assets	Rs m	11,560	16,179	40.0

TEGA INDUSTRIES Cash Flow Statement Analysis

• TEGA INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 1,202.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 812.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 630 million, an improvement of 1,943% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 62 million from the Rs -84 million net cash flows seen during FY22.

TEGA INDUSTRIES 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	137	1,786	1,202.1%
Cash Flow from Investing Activities	Rs m	-256	-2,338	-
Cash Flow from Financing Activities	Rs m	31	630	1,943.3%
Net Cash Flow	Rs m	-84	62	-

Current Valuations for TEGA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.7, an improvement from the EPS of Rs 17.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 705.1, stands at 26.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	143.6	183.0
TTM Earnings per share	Rs	17.6	27.7
Diluted earnings per share	Rs	17.6	27.7
Price to Cash Flow	x	20.1	16.5
TTM P/E ratio	x	26.7	26.1
Price / Book Value ratio	x	5.2	3.5
Market Cap	Rs m	38,619	37,165
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for TEGA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.3x 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 13.3x during FY23, from 9.9x 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 improved and stood at 17.5% during FY23, from 15.9% 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 21.4% during FY23, from 21.6% 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 12.6% during FY23, from 11.6% 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	2.3	2.5
Debtors’ Days	Days	106	121
Interest coverage	x	9.9	13.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.6	12.6
Return on equity	%	15.9	17.5
Return on capital employed	%	21.6	21.4

To see how TEGA INDUSTRIES has performed over the last 5 years, please visit here.

TEGA INDUSTRIES Share Price Performance

Over the last one year, TEGA INDUSTRIES share price has moved up from Rs 470.2 to Rs 705.1, registering a gain of Rs 234.9 or around 50.0%.

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 TEGA INDUSTRIES and quarterly results for TEGA INDUSTRIES)