ADVANI HOTELS 2022-23 Annual Report Analysis

Mon, 9 Oct

ADVANI HOTELS 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.

ADVANI HOTELS Income Statement Analysis

• Operating income during the year rose 92.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 263.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 39.8% in FY23 as against 21.1% in FY22.
• Depreciation charges decreased by 8.4% and finance costs increased by 168.9% YoY, respectively.
• Other income grew by 126.7% YoY.
• Net profit for the year grew by 339.5% YoY.
• Net profit margins during the year grew from 12.7% in FY22 to 29.1% in FY23.

ADVANI HOTELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	512	983	92.2%
Other income	Rs m	9	20	126.7%
Total Revenues	Rs m	520	1,003	92.8%
Gross profit	Rs m	108	392	263.4%
Depreciation	Rs m	29	26	-8.4%
Interest	Rs m	1	2	168.9%
Profit before tax	Rs m	87	384	339.7%
Tax	Rs m	22	98	340.3%
Profit after tax	Rs m	65	286	339.5%
Gross profit margin	%	21.1	39.8
Effective tax rate	%	25.4	25.4
Net profit margin	%	12.7	29.1

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ADVANI HOTELS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 205 million as compared to Rs 188 million in FY22, thereby witnessing an increase of 9.1%.
• Long-term debt down at Rs 1 million as compared to Rs 1 million during FY22, a fall of 7.8%.
• Current assets rose 42% and stood at Rs 449 million, while fixed assets rose 4% and stood at Rs 451 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 900 million as against Rs 750 million during FY22, thereby witnessing a growth of 20%.

ADVANI HOTELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	499	627	25.8
Current Liabilities	Rs m	188	205	9.1
Long-term Debt	Rs m	1	1	-7.8
Total Liabilities	Rs m	750	900	20.0
Current assets	Rs m	317	449	41.8
Fixed Assets	Rs m	433	451	4.1
Total Assets	Rs m	750	900	20.0

ADVANI HOTELS Cash Flow Statement Analysis

• ADVANI HOTELS's cash flow from operating activities (CFO) during FY23 stood at Rs 260 million, an improvement of 98.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -154 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs -10 million net cash flows seen during FY22.

ADVANI HOTELS 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	130	260	98.9%
Cash Flow from Investing Activities	Rs m	-132	-85	-
Cash Flow from Financing Activities	Rs m	-9	-154	-
Net Cash Flow	Rs m	-10	20	-

Current Valuations for ADVANI HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.2, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.6 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	11.1	21.3
TTM Earnings per share	Rs	1.4	6.2
Diluted earnings per share	Rs	1.4	6.2
Price to Cash Flow	x	45.0	11.6
TTM P/E ratio	x	64.8	17.9
Price / Book Value ratio	x	7.2	5.8
Market Cap	Rs m	3,610	3,611
Dividends per share (Unadj.)	Rs	1.4	3.4

Ratio Analysis for ADVANI HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.7x 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 234.9x during FY23, from 144.0x 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 45.6% during FY23, from 13.1% 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 61.3% during FY23, from 17.6% 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 32.0% during FY23, from 8.8% 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	1.7	2.2
Debtors’ Days	Days	27	101
Interest coverage	x	144.0	234.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.8	32.0
Return on equity	%	13.1	45.6
Return on capital employed	%	17.6	61.3

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

ADVANI HOTELS Share Price Performance

Over the last one year, ADVANI HOTELS share price has moved up from Rs 85.8 to Rs 102.2, registering a gain of Rs 16.5 or around 19.2%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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