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UNIVERSAL AUTOFOUNDRY 2022-23 Annual Report Analysis

Fri, 23 Jun

UNIVERSAL AUTOFOUNDRY 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 AUTOFOUNDRY Income Statement Analysis

• Operating income during the year rose 45.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 341.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY23 as against 3.4% in FY22.
• Depreciation charges decreased by 2.6% and finance costs increased by 36.3% YoY, respectively.
• Other income grew by 53.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 4.4% in FY23.

UNIVERSAL AUTOFOUNDRY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,624	2,362	45.4%
Other income	Rs m	6	9	53.8%
Total Revenues	Rs m	1,631	2,371	45.4%
Gross profit	Rs m	56	246	341.1%
Depreciation	Rs m	70	68	-2.6%
Interest	Rs m	29	40	36.3%
Profit before tax	Rs m	-37	148	NA
Tax	Rs m	-10	43	NA
Profit after tax	Rs m	-27	105	NA
Gross profit margin	%	3.4	10.4
Effective tax rate	%	26.7	29.0
Net profit margin	%	-1.7	4.4

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UNIVERSAL AUTOFOUNDRY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 640 million as compared to Rs 477 million in FY22, thereby witnessing an increase of 34.1%.
• Long-term debt down at Rs 166 million as compared to Rs 184 million during FY22, a fall of 10.0%.
• Current assets rose 117% and stood at Rs 971 million, while fixed assets fell 1% and stood at Rs 425 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 877 million during FY22, thereby witnessing a growth of 59%.

UNIVERSAL AUTOFOUNDRY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	219	580	165.6
Current Liabilities	Rs m	477	640	34.1
Long-term Debt	Rs m	184	166	-10.0
Total Liabilities	Rs m	877	1,396	59.2
Current assets	Rs m	448	971	116.9
Fixed Assets	Rs m	429	425	-1.0
Total Assets	Rs m	877	1,396	59.2

UNIVERSAL AUTOFOUNDRY Cash Flow Statement Analysis

• UNIVERSAL AUTOFOUNDRY's cash flow from operating activities (CFO) during FY23 stood at Rs -27 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -25 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 303 million, an improvement of 1,767% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 251 million from the Rs 3 million net cash flows seen during FY22.

UNIVERSAL AUTOFOUNDRY 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	44	-27	-
Cash Flow from Investing Activities	Rs m	-57	-25	-
Cash Flow from Financing Activities	Rs m	16	303	1,767.1%
Net Cash Flow	Rs m	3	251	8,118.3%

Current Valuations for UNIVERSAL AUTOFOUNDRY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an improvement from the EPS of Rs -2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 137.0, stands at 15.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	160.2	195.0
TTM Earnings per share	Rs	-2.7	8.7
Diluted earnings per share	Rs	-2.3	8.7
Price to Cash Flow	x	19.4	7.3
TTM P/E ratio	x	-30.4	15.8
Price / Book Value ratio	x	2.6	2.2
Market Cap	Rs m	577	1,266
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UNIVERSAL AUTOFOUNDRY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 0.9x 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 4.7x during FY23, from -0.3x 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 18.1% during FY23, from -12.5% 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 25.1% during FY23, from -2.0% 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 10.4% during FY23, from 0.2% 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	0.9	1.5
Debtors’ Days	Days	671	736
Interest coverage	x	-0.3	4.7
Debt to equity ratio	x	0.8	0.3
Return on assets	%	0.2	10.4
Return on equity	%	-12.5	18.1
Return on capital employed	%	-2.0	25.1

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

UNIVERSAL AUTOFOUNDRY Share Price Performance

Over the last one year, UNIVERSAL AUTOFOUNDRY share price has moved up from Rs 45.0 to Rs 137.0, registering a gain of Rs 92.0 or around 204.4%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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