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A2Z INFRA ENG. 2022-23 Annual Report Analysis

Fri, 31 Mar

A2Z INFRA ENG. 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.

A2Z INFRA ENG. Income Statement Analysis

• Operating income during the year fell 1.1% 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 down at 33.4% in FY23 as against 44.5% in FY22.
• Depreciation charges decreased by 2.4% and finance costs decreased by 52.3% YoY, respectively.
• Other income grew by 85.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 50.9% in FY22 to 36.1% in FY23.

A2Z INFRA ENG. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,533	3,494	-1.1%
Other income	Rs m	176	326	85.2%
Total Revenues	Rs m	3,709	3,821	3.0%
Gross profit	Rs m	-1,574	-1,167	NA
Depreciation	Rs m	90	88	-2.4%
Interest	Rs m	279	133	-52.3%
Profit before tax	Rs m	-1,767	-1,062	NA
Tax	Rs m	31	199	539.1%
Profit after tax	Rs m	-1,798	-1,261	NA
Gross profit margin	%	-44.5	-33.4
Effective tax rate	%	-1.8	-18.7
Net profit margin	%	-50.9	-36.1

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A2Z INFRA ENG. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 9 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -24.7%.
• Long-term debt down at Rs 40 million as compared to Rs 58 million during FY22, a fall of 31.4%.
• Current assets fell 27% and stood at Rs 7 billion, while fixed assets fell 37% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 14 billion during FY22, thereby witnessing a fall of 30%.

A2Z INFRA ENG. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,510	314	-79.2
Current Liabilities	Rs m	11,859	8,930	-24.7
Long-term Debt	Rs m	58	40	-31.4
Total Liabilities	Rs m	13,970	9,799	-29.9
Current assets	Rs m	9,637	7,055	-26.8
Fixed Assets	Rs m	4,333	2,744	-36.7
Total Assets	Rs m	13,970	9,799	-29.9

A2Z INFRA ENG. Cash Flow Statement Analysis

• A2Z INFRA ENG.'s cash flow from operating activities (CFO) during FY23 stood at Rs 582 million, an improvement of 52.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -102 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -466 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 15 million from the Rs -48 million net cash flows seen during FY22.

A2Z INFRA ENG. 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	381	582	52.7%
Cash Flow from Investing Activities	Rs m	249	-102	-
Cash Flow from Financing Activities	Rs m	-678	-466	-
Net Cash Flow	Rs m	-48	15	-

Current Valuations for A2Z INFRA ENG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.2, an improvement from the EPS of Rs -10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.7, stands at -0.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -1.6 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	20.1	19.8
TTM Earnings per share	Rs	-10.2	-7.2
Diluted earnings per share	Rs	-10.2	-7.2
Price to Cash Flow	x	-1.0	-1.6
TTM P/E ratio	x	-1.0	-0.9
Price / Book Value ratio	x	1.0	6.0
Market Cap	Rs m	1,559	1,893
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for A2Z INFRA ENG.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 0.8x 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 -7.0x during FY23, from -5.3x 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 declined and down at -400.8% during FY23, from -119.1% 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 declined and down at -262.1% during FY23, from -94.9% 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 declined and down at -11.5% during FY23, from -10.9% 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	0.8	0.8
Debtors’ Days	Days	5,285	3,394
Interest coverage	x	-5.3	-7.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-10.9	-11.5
Return on equity	%	-119.1	-400.8
Return on capital employed	%	-94.9	-262.1

To see how A2Z INFRA ENG. has performed over the last 5 years, please visit here.

A2Z INFRA ENG. Share Price Performance

Over the last one year, A2Z INFRA ENG. share price has moved down from Rs 9.7 to Rs 6.7, registering a loss of Rs 3.0 or around 31.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

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

(To know more, check out historical annual results for A2Z INFRA ENG. and quarterly results for A2Z INFRA ENG.)