ALLIED DIGITAL 2021-22 Annual Report Analysis

Fri, 15 Jul

ALLIED DIGITAL 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.

ALLIED DIGITAL Income Statement Analysis

• Operating income during the year rose 35.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 110.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY22 as against 12.5% in FY21.
• Depreciation charges decreased by 5.9% and finance costs decreased by 29.0% YoY, respectively.
• Other income declined by 36.9% YoY.
• Net profit for the year grew by 217.3% YoY.
• Net profit margins during the year grew from 5.4% in FY21 to 12.6% in FY22.

ALLIED DIGITAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,581	4,847	35.4%
Other income	Rs m	41	26	-36.9%
Total Revenues	Rs m	3,621	4,872	34.5%
Gross profit	Rs m	447	939	110.1%
Depreciation	Rs m	215	203	-5.9%
Interest	Rs m	37	26	-29.0%
Profit before tax	Rs m	235	735	212.9%
Tax	Rs m	43	125	192.7%
Profit after tax	Rs m	192	610	217.3%
Gross profit margin	%	12.5	19.4
Effective tax rate	%	18.2	17.0
Net profit margin	%	5.4	12.6

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ALLIED DIGITAL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an decrease of -16.5%.
• Long-term debt down at Rs 46 million as compared to Rs 47 million during FY21, a fall of 1.1%.
• Current assets rose 14% and stood at Rs 4 billion, while fixed assets rose 2% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 6 billion during FY21, thereby witnessing a growth of 8%.

ALLIED DIGITAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,690	5,246	11.9
Current Liabilities	Rs m	1,259	1,051	-16.5
Long-term Debt	Rs m	47	46	-1.1
Total Liabilities	Rs m	6,407	6,933	8.2
Current assets	Rs m	3,458	3,934	13.8
Fixed Assets	Rs m	2,950	2,999	1.7
Total Assets	Rs m	6,407	6,933	8.2

ALLIED DIGITAL Cash Flow Statement Analysis

• ALLIED DIGITAL's cash flow from operating activities (CFO) during FY22 stood at Rs 146 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -60 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -77 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 10 million from the Rs 343 million net cash flows seen during FY21.

ALLIED DIGITAL 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	494	146	-70.4%
Cash Flow from Investing Activities	Rs m	-121	-60	-
Cash Flow from Financing Activities	Rs m	-30	-77	-
Net Cash Flow	Rs m	343	10	-97.1%

Current Valuations for ALLIED DIGITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, 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 132.0, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	70.6	89.4
TTM Earnings per share	Rs	3.8	11.3
Diluted earnings per share	Rs	3.5	11.3
Price to Cash Flow	x	5.8	7.3
TTM P/E ratio	x	12.2	11.7
Price / Book Value ratio	x	0.3	1.1
Market Cap	Rs m	1,636	5,917
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for ALLIED DIGITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY22, from 2.7x 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 29.1x during FY22, from 7.4x 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 improved and stood at 11.6% during FY22, from 4.1% 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 improved and stood at 14.4% during FY22, from 5.7% 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 improved and stood at 9.2% during FY22, from 3.6% 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	2.7	3.7
Debtors’ Days	Days	1,674	1,496
Interest coverage	x	7.4	29.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	9.2
Return on equity	%	4.1	11.6
Return on capital employed	%	5.7	14.4

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

ALLIED DIGITAL Share Price Performance

Over the last one year, ALLIED DIGITAL share price has moved up from Rs 68.6 to Rs 132.0, registering a gain of Rs 63.4 or around 92.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 27,025.1 (down 0.5%). Over the last one year it has moved down from 30,414.1 to 27,025.1, a loss of 3,389 points (down 11.1%).

Overall, the S&P BSE SENSEX is up 1.4% over the year.

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