FELIX INDUSTRIES 2022-23 Annual Report Analysis

Mon, 26 Feb

FELIX 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.

FELIX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 64.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY23 as against 15.9% in FY22.
• Depreciation charges increased by 25.4% and finance costs increased by 80.2% YoY, respectively.
• Other income grew by 612.5% YoY.
• Net profit for the year grew by 41.1% YoY.
• Net profit margins during the year declined from 7.4% in FY22 to 6.3% in FY23.

FELIX INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	112	185	64.6%
Other income	Rs m	0	1	612.5%
Total Revenues	Rs m	112	185	65.0%
Gross profit	Rs m	18	21	19.7%
Depreciation	Rs m	2	3	25.4%
Interest	Rs m	3	5	80.2%
Profit before tax	Rs m	13	14	9.2%
Tax	Rs m	5	3	-45.8%
Profit after tax	Rs m	8	12	41.1%
Gross profit margin	%	15.9	11.6
Effective tax rate	%	36.7	18.2
Net profit margin	%	7.4	6.3

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FELIX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 62 million as compared to Rs 61 million in FY22, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 17 million as compared to Rs 18 million during FY22, a fall of 2.0%.
• Current assets rose 84% and stood at Rs 176 million, while fixed assets rose 16% and stood at Rs 66 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 243 million as against Rs 153 million during FY22, thereby witnessing a growth of 59%.

FELIX INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	76	87	14.7
Current Liabilities	Rs m	61	62	2.5
Long-term Debt	Rs m	18	17	-2.0
Total Liabilities	Rs m	153	243	59.0
Current assets	Rs m	96	176	84.1
Fixed Assets	Rs m	57	66	15.9
Total Assets	Rs m	153	243	59.0

FELIX INDUSTRIES Cash Flow Statement Analysis

• FELIX INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -61 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 million, an improvement of 29.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 73 million, an improvement of 1,321% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

FELIX 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	4	-61	-
Cash Flow from Investing Activities	Rs m	-10	-12	-
Cash Flow from Financing Activities	Rs m	5	73	1,321.2%
Net Cash Flow	Rs m	0	0	-

Current Valuations for FELIX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 28.4 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	22.0	36.3
TTM Earnings per share	Rs	1.6	2.3
Diluted earnings per share	Rs	0.7	0.9
Price to Cash Flow	x	0.0	28.4
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	2.1	4.7
Market Cap	Rs m	161	404
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FELIX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x 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 deteriorated and stood at 3.8x during FY23, from 5.6x 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 13.5% during FY23, from 11.0% 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 18.7% during FY23, from 17.1% 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 6.9% during FY23, from 7.3% 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	2.8
Debtors’ Days	Days	1,781	1,143
Interest coverage	x	5.6	3.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.3	6.9
Return on equity	%	11.0	13.5
Return on capital employed	%	17.1	18.7

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

FELIX INDUSTRIES Share Price Performance

Over the last one year, FELIX INDUSTRIES share price has moved down from Rs 16.3 to Rs 0.0, registering a loss of Rs 16.3 or around 100.0%.

Overall, the NIFTY 50 is up 0.2% over the year.

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