INDIAN TERRAIN FASHIONS 2022-23 Annual Report Analysis

Mon, 12 Feb

INDIAN TERRAIN FASHIONS 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.

INDIAN TERRAIN FASHIONS Income Statement Analysis

• Operating income during the year rose 48.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 85.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY23 as against 8.0% in FY22.
• Depreciation charges decreased by 1.6% and finance costs increased by 16.7% YoY, respectively.
• Other income declined by 24.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.7% in FY22 to 1.4% in FY23.

INDIAN TERRAIN FASHIONS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,363	5,008	48.9%
Other income	Rs m	73	55	-24.9%
Total Revenues	Rs m	3,436	5,063	47.3%
Gross profit	Rs m	268	497	85.1%
Depreciation	Rs m	231	228	-1.6%
Interest	Rs m	188	219	16.7%
Profit before tax	Rs m	-77	105	NA
Tax	Rs m	-55	34	NA
Profit after tax	Rs m	-22	71	NA
Gross profit margin	%	8.0	9.9
Effective tax rate	%	71.5	32.5
Net profit margin	%	-0.7	1.4

Don't Miss: Key Information for Long-term Investors

INDIAN TERRAIN FASHIONS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 30.9%.
• Long-term debt down at Rs 58 million as compared to Rs 88 million during FY22, a fall of 34.3%.
• Current assets rose 29% and stood at Rs 4 billion, while fixed assets fell 20% and stood at Rs 867 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 17%.

INDIAN TERRAIN FASHIONS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,940	2,115	9.1
Current Liabilities	Rs m	2,050	2,683	30.9
Long-term Debt	Rs m	88	58	-34.3
Total Liabilities	Rs m	4,443	5,194	16.9
Current assets	Rs m	3,353	4,328	29.1
Fixed Assets	Rs m	1,090	867	-20.5
Total Assets	Rs m	4,443	5,194	16.9

INDIAN TERRAIN FASHIONS Cash Flow Statement Analysis

• INDIAN TERRAIN FASHIONS's cash flow from operating activities (CFO) during FY23 stood at Rs 122 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 184 million, an improvement of 440.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -331 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -25 million from the Rs 27 million net cash flows seen during FY22.

INDIAN TERRAIN FASHIONS 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	225	122	-45.8%
Cash Flow from Investing Activities	Rs m	34	184	440.2%
Cash Flow from Financing Activities	Rs m	-232	-331	-
Net Cash Flow	Rs m	27	-25	-

Current Valuations for INDIAN TERRAIN FASHIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.1, stands at 28.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	81.8	113.1
TTM Earnings per share	Rs	-0.5	1.6
Diluted earnings per share	Rs	-0.5	1.6
Price to Cash Flow	x	10.2	9.3
TTM P/E ratio	x	-97.0	28.0
Price / Book Value ratio	x	1.1	1.3
Market Cap	Rs m	2,083	2,774
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDIAN TERRAIN FASHIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x 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 improved and stood at 1.5x during FY23, from 0.6x 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 3.4% during FY23, from -1.1% 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 14.9% during FY23, from 5.4% 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 5.6% during FY23, from 3.7% 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	1.6
Debtors’ Days	Days	24	19
Interest coverage	x	0.6	1.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	5.6
Return on equity	%	-1.1	3.4
Return on capital employed	%	5.4	14.9

To see how INDIAN TERRAIN FASHIONS has performed over the last 5 years, please visit here.

INDIAN TERRAIN FASHIONS Share Price Performance

Over the last one year, INDIAN TERRAIN FASHIONS share price has moved down from Rs 48.2 to Rs 45.1, registering a loss of Rs 3.1 or around 6.5%.

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

(To know more, check out historical annual results for INDIAN TERRAIN FASHIONS and quarterly results for INDIAN TERRAIN FASHIONS)