ASM TECHNOLOGIES 2022-23 Annual Report Analysis

Tue, 1 Aug

ASM TECHNOLOGIES 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.

ASM TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in FY23 as against 10.9% in FY22.
• Depreciation charges increased by 91.7% and finance costs increased by 28.5% YoY, respectively.
• Other income declined by 8.9% YoY.
• Net profit for the year declined by 48.6% YoY.
• Net profit margins during the year declined from 7.3% in FY22 to 3.2% in FY23.

ASM TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,917	2,204	15.0%
Other income	Rs m	69	63	-8.9%
Total Revenues	Rs m	1,986	2,267	14.2%
Gross profit	Rs m	210	207	-1.2%
Depreciation	Rs m	44	85	91.7%
Interest	Rs m	56	72	28.5%
Profit before tax	Rs m	179	114	-36.5%
Tax	Rs m	40	42	5.7%
Profit after tax	Rs m	139	71	-48.6%
Gross profit margin	%	10.9	9.4
Effective tax rate	%	22.3	37.1
Net profit margin	%	7.3	3.2

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ASM TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 687 million as compared to Rs 663 million in FY22, thereby witnessing an increase of 3.6%.
• Long-term debt stood at Rs 198 million as compared to Rs 97 million during FY22, a growth of 104.1%.
• Current assets fell 7% and stood at Rs 852 million, while fixed assets rose 54% and stood at Rs 744 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 14%.

ASM TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	657	717	9.1
Current Liabilities	Rs m	663	687	3.6
Long-term Debt	Rs m	97	198	104.1
Total Liabilities	Rs m	1,402	1,597	13.8
Current assets	Rs m	919	852	-7.3
Fixed Assets	Rs m	483	744	54.1
Total Assets	Rs m	1,402	1,597	13.8

ASM TECHNOLOGIES Cash Flow Statement Analysis

• ASM TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 202 million, an improvement of 45.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -251 million, an improvement of 185.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 40 million, an improvement of 164% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs -11 million net cash flows seen during FY22.

ASM TECHNOLOGIES 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	139	202	45.2%
Cash Flow from Investing Activities	Rs m	-88	-251	-
Cash Flow from Financing Activities	Rs m	-62	40	-
Net Cash Flow	Rs m	-11	-9	-

Current Valuations for ASM TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an decline from the EPS of Rs 13.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 553.0, stands at 81.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 32.1 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	191.7	220.4
TTM Earnings per share	Rs	13.9	7.1
Diluted earnings per share	Rs	12.6	6.5
Price to Cash Flow	x	34.2	32.1
TTM P/E ratio	x	47.5	81.9
Price / Book Value ratio	x	7.4	7.0
Market Cap	Rs m	4,840	5,020
Dividends per share (Unadj.)	Rs	8.5	7.0

Ratio Analysis for ASM TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.4x 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 2.6x during FY23, from 4.2x 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 10.0% during FY23, from 21.1% 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 20.3% during FY23, from 31.1% 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 9.0% during FY23, from 13.9% 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	1.4	1.2
Debtors’ Days	Days	108	90
Interest coverage	x	4.2	2.6
Debt to equity ratio	x	0.1	0.3
Return on assets	%	13.9	9.0
Return on equity	%	21.1	10.0
Return on capital employed	%	31.1	20.3

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

ASM TECHNOLOGIES Share Price Performance

Over the last one year, ASM TECHNOLOGIES share price has moved up from Rs 455.8 to Rs 553.0, registering a gain of Rs 97.2 or around 21.3%.

Overall, the S&P BSE SENSEX is up 17.0% over the year.

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