UNITECH 2022-23 Annual Report Analysis

Fri, 31 Mar

UNITECH 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.

UNITECH Income Statement Analysis

• Operating income during the year fell 24.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 6.6% in FY23 as against 5.1% in FY22.
• Depreciation charges decreased by 2.3% and finance costs increased by 213.3% YoY, respectively.
• Other income grew by 35.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 186.4% in FY22 to 765.3% in FY23.

UNITECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,335	4,055	-24.0%
Other income	Rs m	638	864	35.6%
Total Revenues	Rs m	5,972	4,920	-17.6%
Gross profit	Rs m	-273	-266	NA
Depreciation	Rs m	64	62	-2.3%
Interest	Rs m	10,110	31,674	213.3%
Profit before tax	Rs m	-9,809	-31,138	NA
Tax	Rs m	132	-105	NA
Profit after tax	Rs m	-9,942	-31,033	NA
Gross profit margin	%	-5.1	-6.6
Effective tax rate	%	-1.3	0.3
Net profit margin	%	-186.4	-765.3

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UNITECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 278 billion as compared to Rs 244 billion in FY22, thereby witnessing an increase of 13.9%.
• Long-term debt down at Rs 395 million as compared to Rs 490 million during FY22, a fall of 19.3%.
• Current assets rose 1% and stood at Rs 239 billion, while fixed assets rose 2% and stood at Rs 27 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 268 billion as against Rs 266 billion during FY22, thereby witnessing a growth of 1%.

UNITECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,019	-8,544	NA
Current Liabilities	Rs m	243,782	277,734	13.9
Long-term Debt	Rs m	490	395	-19.3
Total Liabilities	Rs m	266,486	267,857	0.5
Current assets	Rs m	236,920	238,599	0.7
Fixed Assets	Rs m	26,736	27,394	2.5
Total Assets	Rs m	266,486	267,857	0.5

UNITECH Cash Flow Statement Analysis

• UNITECH's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 41 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -246 million, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 128 million net cash flows seen during FY22.

UNITECH 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	-137	2,510	-
Cash Flow from Investing Activities	Rs m	583	41	-93.0%
Cash Flow from Financing Activities	Rs m	-319	-246	-
Net Cash Flow	Rs m	128	2,305	1,699.9%

Current Valuations for UNITECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.9, an decline from the EPS of Rs -3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1.2, stands at -0.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at -0.2 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	2.0	1.5
TTM Earnings per share	Rs	-3.8	-11.9
Diluted earnings per share	Rs	-3.8	-11.9
Price to Cash Flow	x	-0.5	-0.2
TTM P/E ratio	x	-0.5	-0.1
Price / Book Value ratio	x	0.3	-0.6
Market Cap	Rs m	6,986	4,879
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UNITECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.0x 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 0.0x during FY23, from 0.0x 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 363.2% during FY23, from -49.7% 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 declined and down at -6.6% during FY23, from 1.5% 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 0.2% during FY23, from 0.1% 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	1.0	0.9
Debtors’ Days	Days	4,961	6,372
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.1	0.2
Return on equity	%	-49.7	363.2
Return on capital employed	%	1.5	-6.6

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

UNITECH Share Price Performance

Over the last one year, UNITECH share price has moved down from Rs 2.0 to Rs 1.2, registering a loss of Rs 0.9 or around 42.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

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

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