UDAY JEWELLERY INDUSTRIES 2022-23 Annual Report Analysis

Mon, 12 Feb

UDAY JEWELLERY 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.

UDAY JEWELLERY INDUSTRIES 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 68.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.5% in FY23 as against 6.5% in FY22.
• Depreciation charges increased by 35.4% and finance costs increased by 97.6% YoY, respectively.
• Other income grew by 61.2% YoY.
• Net profit for the year grew by 66.3% YoY.
• Net profit margins during the year grew from 4.7% in FY22 to 5.4% in FY23.

UDAY JEWELLERY INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,215	1,767	45.4%
Other income	Rs m	10	16	61.2%
Total Revenues	Rs m	1,225	1,783	45.5%
Gross profit	Rs m	79	133	68.2%
Depreciation	Rs m	2	3	35.4%
Interest	Rs m	9	18	97.6%
Profit before tax	Rs m	78	128	64.7%
Tax	Rs m	21	33	60.4%
Profit after tax	Rs m	57	95	66.3%
Gross profit margin	%	6.5	7.5
Effective tax rate	%	26.7	26.0
Net profit margin	%	4.7	5.4

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UDAY JEWELLERY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 368 million as compared to Rs 277 million in FY22, thereby witnessing an increase of 32.7%.
• Long-term debt down at Rs 11 million as compared to Rs 16 million during FY22, a fall of 32.4%.
• Current assets rose 21% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 43 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 879 million during FY22, thereby witnessing a growth of 21%.

UDAY JEWELLERY INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	585	680	16.2
Current Liabilities	Rs m	277	368	32.7
Long-term Debt	Rs m	16	11	-32.4
Total Liabilities	Rs m	879	1,059	20.5
Current assets	Rs m	837	1,016	21.3
Fixed Assets	Rs m	41	43	4.1
Total Assets	Rs m	879	1,059	20.5

UDAY JEWELLERY INDUSTRIES Cash Flow Statement Analysis

• UDAY JEWELLERY INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 22 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -26 million, an improvement of 359.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 42 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 38 million from the Rs -16 million net cash flows seen during FY22.

UDAY JEWELLERY 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	-144	22	-
Cash Flow from Investing Activities	Rs m	-6	-26	-
Cash Flow from Financing Activities	Rs m	134	42	-68.8%
Net Cash Flow	Rs m	-16	38	-

Current Valuations for UDAY JEWELLERY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 98.9, stands at 22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 27.0 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	55.2	80.3
TTM Earnings per share	Rs	2.6	4.3
Diluted earnings per share	Rs	2.6	4.3
Price to Cash Flow	x	35.5	27.0
TTM P/E ratio	x	36.7	22.9
Price / Book Value ratio	x	4.7	3.9
Market Cap	Rs m	2,750	2,639
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UDAY JEWELLERY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY23, from 3.0x 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 8.2x during FY23, from 9.6x 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 14.0% during FY23, from 9.8% 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 21.1% during FY23, from 14.5% 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 10.7% during FY23, from 7.5% 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	3.0	2.8
Debtors’ Days	Days	1,029	915
Interest coverage	x	9.6	8.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	10.7
Return on equity	%	9.8	14.0
Return on capital employed	%	14.5	21.1

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

UDAY JEWELLERY INDUSTRIES Share Price Performance

Over the last one year, UDAY JEWELLERY INDUSTRIES share price has moved up from Rs 95.2 to Rs 98.9, registering a gain of Rs 3.7 or around 3.9%.

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

(To know more, check out historical annual results for UDAY JEWELLERY INDUSTRIES and quarterly results for UDAY JEWELLERY INDUSTRIES)