ARTSON ENG 2021-22 Annual Report Analysis

Tue, 14 Jun

ARTSON ENG 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.

ARTSON ENG Income Statement Analysis

• Operating income during the year rose 14.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 63.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.9% in FY22 as against 2.7% in FY21.
• Depreciation charges increased by 10.5% and finance costs increased by 5.8% YoY, respectively.
• Other income declined by 57.2% YoY.
• Net profit for the year declined by 11.4% YoY.
• Net profit margins during the year grew from 3.8% in FY21 to 2.9% in FY22.

ARTSON ENG Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,503	1,726	14.9%
Other income	Rs m	20	9	-57.2%
Total Revenues	Rs m	1,523	1,735	13.9%
Gross profit	Rs m	41	67	63.7%
Depreciation	Rs m	11	12	10.5%
Interest	Rs m	102	108	5.8%
Profit before tax	Rs m	-51	-44	-14.5%
Tax	Rs m	6	7	16.0%
Profit after tax	Rs m	-57	-50	-11.4%
Gross profit margin	%	2.7	3.9
Effective tax rate	%	-11.1	-15.1
Net profit margin	%	-3.8	-2.9

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ARTSON ENG Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -18.4%.
• Long-term debt down at Rs 69 million as compared to Rs 112 million during FY21, a fall of 38.5%.
• Current assets fell 21% and stood at Rs 1 billion, while fixed assets rose 14% and stood at Rs 211 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 2 billion during FY21, thereby witnessing a fall of 17%.

ARTSON ENG Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1	5	330.4
Current Liabilities	Rs m	1,622	1,323	-18.4
Long-term Debt	Rs m	112	69	-38.5
Total Liabilities	Rs m	1,703	1,405	-17.5
Current assets	Rs m	1,518	1,194	-21.3
Fixed Assets	Rs m	185	211	14.0
Total Assets	Rs m	1,703	1,405	-17.5

ARTSON ENG Cash Flow Statement Analysis

• ARTSON ENG's cash flow from operating activities (CFO) during FY22 stood at Rs 142 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -164 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -39 million from the Rs 207 million net cash flows seen during FY21.

ARTSON ENG 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	159	142	-10.6%
Cash Flow from Investing Activities	Rs m	-24	-17	-
Cash Flow from Financing Activities	Rs m	73	-164	-
Net Cash Flow	Rs m	207	-39	-

Current Valuations for ARTSON ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.4, an improvement from the EPS of Rs -1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.3, stands at -62.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 635.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at -90.7 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	40.7	46.8
TTM Earnings per share	Rs	-1.5	-1.4
Diluted earnings per share	Rs	-1.5	-1.4
Price to Cash Flow	x	-31.5	-90.7
TTM P/E ratio	x	-25.6	-62.6
Price / Book Value ratio	x	1,282.9	705.8
Market Cap	Rs m	1,472	3,497
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARTSON ENG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY22, from 0.9x 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 0.6x during FY22, from 0.5x 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 -1,015.9% during FY22, from -4,938.1% 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 86.8% during FY22, from 44.9% 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 4.1% during FY22, from 2.6% 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	0.9	0.9
Debtors’ Days	Days	1,550	1,209
Interest coverage	x	0.5	0.6
Debt to equity ratio	x	97.2	13.9
Return on assets	%	2.6	4.1
Return on equity	%	-4,938.1	-1,015.9
Return on capital employed	%	44.9	86.8

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

ARTSON ENG Share Price Performance

Over the last one year, ARTSON ENG share price has moved up from Rs 47.4 to Rs 85.3, registering a gain of Rs 38.0 or around 80.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,006.3 (up 0.6%). Over the last one year it has moved up from 22,806.8 to 26,006.3, a gain of 3,200 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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