TOKYO PLAST 2022-23 Annual Report Analysis

Thu, 19 Oct

TOKYO PLAST 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.

TOKYO PLAST Income Statement Analysis

• Operating income during the year fell 8.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY23 as against 4.3% in FY22.
• Depreciation charges increased by 8.8% and finance costs increased by 2.8% YoY, respectively.
• Other income declined by 52.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.2% in FY22 to 0.2% in FY23.

TOKYO PLAST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	739	677	-8.3%
Other income	Rs m	9	4	-52.6%
Total Revenues	Rs m	747	681	-8.8%
Gross profit	Rs m	32	44	37.8%
Depreciation	Rs m	29	32	8.8%
Interest	Rs m	14	14	2.8%
Profit before tax	Rs m	-3	2	NA
Tax	Rs m	-1	3	NA
Profit after tax	Rs m	-2	-1	NA
Gross profit margin	%	4.3	6.4
Effective tax rate	%	39.0	166.5
Net profit margin	%	-0.2	-0.2

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TOKYO PLAST Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 198 million as compared to Rs 230 million in FY22, thereby witnessing an decrease of -14.0%.
• Current assets fell 21% and stood at Rs 452 million, while fixed assets rose 35% and stood at Rs 392 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 844 million as against Rs 863 million during FY22, thereby witnessing a fall of 2%.

TOKYO PLAST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	582	589	1.2
Current Liabilities	Rs m	230	198	-14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	863	844	-2.2
Current assets	Rs m	574	452	-21.2
Fixed Assets	Rs m	289	392	35.5
Total Assets	Rs m	863	844	-2.2

TOKYO PLAST Cash Flow Statement Analysis

• TOKYO PLAST's cash flow from operating activities (CFO) during FY23 stood at Rs 189 million, an improvement of 423.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -134 million, an improvement of 311.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -54 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs -3 million net cash flows seen during FY22.

TOKYO PLAST 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	36	189	423.7%
Cash Flow from Investing Activities	Rs m	-33	-134	-
Cash Flow from Financing Activities	Rs m	-7	-54	-
Net Cash Flow	Rs m	-3	1	-

Current Valuations for TOKYO PLAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an improvement from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 104.4, stands at -698.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 30.3 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	77.7	71.3
TTM Earnings per share	Rs	-0.2	-0.1
Diluted earnings per share	Rs	-0.2	-0.1
Price to Cash Flow	x	30.8	30.3
TTM P/E ratio	x	-555.3	-698.6
Price / Book Value ratio	x	1.6	1.6
Market Cap	Rs m	924	926
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TOKYO PLAST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.5x 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 1.1x during FY23, from 0.8x 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 -0.2% during FY23, from -0.3% 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 2.7% during FY23, from 1.9% 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 1.5% during FY23, from 1.4% 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	2.5	2.3
Debtors’ Days	Days	82,059,637	710
Interest coverage	x	0.8	1.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.4	1.5
Return on equity	%	-0.3	-0.2
Return on capital employed	%	1.9	2.7

To see how TOKYO PLAST has performed over the last 5 years, please visit here.

TOKYO PLAST Share Price Performance

Over the last one year, TOKYO PLAST share price has moved up from Rs 99.4 to Rs 104.4, registering a gain of Rs 5.1 or around 5.1%.

Overall, the S&P BSE SENSEX is up 12.7% over the year.

(To know more, check out historical annual results for TOKYO PLAST and quarterly results for TOKYO PLAST)