LAKSHMI AUTOM. 2021-22 Annual Report Analysis

Tue, 2 Aug

LAKSHMI AUTOM. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

LAKSHMI AUTOM. Income Statement Analysis

• Operating income during the year rose 15.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.2% in FY22 as against 38.4% in FY21.
• Depreciation charges increased by 6.3% and finance costs decreased by 7.8% YoY, respectively.
• Other income grew by 21.4% YoY.
• Net profit for the year grew by 2.5% YoY.
• Net profit margins during the year declined from 24.9% in FY21 to 22.0% in FY22.

LAKSHMI AUTOM. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	102	118	15.9%
Other income	Rs m	11	14	21.4%
Total Revenues	Rs m	113	132	16.4%
Gross profit	Rs m	39	38	-3.0%
Depreciation	Rs m	9	9	6.3%
Interest	Rs m	8	7	-7.8%
Profit before tax	Rs m	34	35	4.0%
Tax	Rs m	8	9	8.6%
Profit after tax	Rs m	25	26	2.5%
Gross profit margin	%	38.4	32.2
Effective tax rate	%	25.0	26.2
Net profit margin	%	24.9	22.0

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LAKSHMI AUTOM. Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 25 million as compared to Rs 35 million in FY21, thereby witnessing an decrease of -30.0%.
• Long-term debt down at Rs 26 million as compared to Rs 34 million during FY21, a fall of 22.2%.
• Current assets fell 28% and stood at Rs 43 million, while fixed assets rose 17% and stood at Rs 244 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 288 million as against Rs 269 million during FY21, thereby witnessing a growth of 7%.

LAKSHMI AUTOM. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	161	186	15.7
Current Liabilities	Rs m	35	25	-30.0
Long-term Debt	Rs m	34	26	-22.2
Total Liabilities	Rs m	269	288	7.1
Current assets	Rs m	60	43	-27.5
Fixed Assets	Rs m	209	244	17.0
Total Assets	Rs m	269	288	7.1

LAKSHMI AUTOM. Cash Flow Statement Analysis

• LAKSHMI AUTOM.'s cash flow from operating activities (CFO) during FY22 stood at Rs 1 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -12 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs -2 million net cash flows seen during FY21.

LAKSHMI AUTOM. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-32	1	-
Cash Flow from Investing Activities	Rs m	36	9	-74.0%
Cash Flow from Financing Activities	Rs m	-6	-12	-
Net Cash Flow	Rs m	-2	-1	-

Current Valuations for LAKSHMI AUTOM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.8, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 675.0, stands at 17.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	15.2	176.4
TTM Earnings per share	Rs	3.8	38.8
Diluted earnings per share	Rs	38.0	38.9
Price to Cash Flow	x	0.9	10.2
TTM P/E ratio	x	1.3	17.3
Price / Book Value ratio	x	1.7	1.9
Market Cap	Rs m	280	362
Dividends per share (Unadj.)	Rs	0.0	10.0

Ratio Analysis for LAKSHMI AUTOM.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.7x during FY21. 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 5.8x during FY22, from 5.3x during FY21. 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 declined and down at 14.0% during FY22, from 15.8% during FY22. 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 20.0% during FY22, from 21.5% during FY21. 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 11.6% during FY22, from 12.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	1.8
Debtors’ Days	Days	652	568
Interest coverage	x	5.3	5.8
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.4	11.6
Return on equity	%	15.8	14.0
Return on capital employed	%	21.5	20.0

To see how LAKSHMI AUTOM. has performed over the last 5 years, please visit here.

LAKSHMI AUTOM. Share Price Performance

Over the last one year, LAKSHMI AUTOM. share price has moved up from Rs 643.7 to Rs 675.0, registering a gain of Rs 31.4 or around 4.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 30,053.1 (down 0.4%). Over the last one year it has moved up from 23,787.5 to 30,053.1, a gain of 6,266 points (up 26.3%).

Overall, the S&P BSE SENSEX is up 10.4% over the year.

(To know more, check out historical annual results for LAKSHMI AUTOM. and quarterly results for LAKSHMI AUTOM.)