ADVANCED ENZYME TECHNOLOGIES 2022-23 Annual Report Analysis

Mon, 17 Jul

ADVANCED ENZYME 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.

ADVANCED ENZYME TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 2.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.4% in FY23 as against 38.3% in FY22.
• Depreciation charges increased by 0.1% and finance costs increased by 17.7% YoY, respectively.
• Other income grew by 296.5% YoY.
• Net profit for the year declined by 16.1% YoY.
• Net profit margins during the year declined from 23.4% in FY22 to 19.2% in FY23.

ADVANCED ENZYME TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,294	5,406	2.1%
Other income	Rs m	64	255	296.5%
Total Revenues	Rs m	5,358	5,661	5.7%
Gross profit	Rs m	2,026	1,534	-24.3%
Depreciation	Rs m	350	350	0.1%
Interest	Rs m	30	35	17.7%
Profit before tax	Rs m	1,711	1,404	-17.9%
Tax	Rs m	473	365	-22.7%
Profit after tax	Rs m	1,238	1,039	-16.1%
Gross profit margin	%	38.3	28.4
Effective tax rate	%	27.6	26.0
Net profit margin	%	23.4	19.2

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ADVANCED ENZYME TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 776 million as compared to Rs 604 million in FY22, thereby witnessing an increase of 28.4%.
• Long-term debt down at Rs 78 million as compared to Rs 81 million during FY22, a fall of 4.1%.
• Current assets rose 19% and stood at Rs 7 billion, while fixed assets rose 5% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 12%.

ADVANCED ENZYME TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,880	12,351	13.5
Current Liabilities	Rs m	604	776	28.4
Long-term Debt	Rs m	81	78	-4.1
Total Liabilities	Rs m	12,602	14,105	11.9
Current assets	Rs m	6,044	7,221	19.5
Fixed Assets	Rs m	6,558	6,884	5.0
Total Assets	Rs m	12,602	14,105	11.9

ADVANCED ENZYME TECHNOLOGIES Cash Flow Statement Analysis

• ADVANCED ENZYME TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 14.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 7,773.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -258 million, an improvement of 47% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 754 million net cash flows seen during FY22.

ADVANCED ENZYME 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	1,223	1,404	14.8%
Cash Flow from Investing Activities	Rs m	-38	-2,982	-
Cash Flow from Financing Activities	Rs m	-485	-258	-
Net Cash Flow	Rs m	754	-1,709	-

Current Valuations for ADVANCED ENZYME TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an decline from the EPS of Rs 11.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 291.2, stands at 31.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 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	47.4	48.3
TTM Earnings per share	Rs	11.1	9.3
Diluted earnings per share	Rs	11.1	9.3
Price to Cash Flow	x	19.9	22.3
TTM P/E ratio	x	25.5	31.4
Price / Book Value ratio	x	3.9	2.5
Market Cap	Rs m	42,457	30,939
Dividends per share (Unadj.)	Rs	1.0	5.0

Ratio Analysis for ADVANCED ENZYME TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 9.3x during FY23, from 10.0x 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 41.4x during FY23, from 58.9x 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 8.4% during FY23, from 11.4% 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 11.6% during FY23, from 15.9% 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 7.6% during FY23, from 10.1% 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	10.0	9.3
Debtors’ Days	Days	61	68
Interest coverage	x	58.9	41.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.1	7.6
Return on equity	%	11.4	8.4
Return on capital employed	%	15.9	11.6

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

ADVANCED ENZYME TECHNOLOGIES Share Price Performance

Over the last one year, ADVANCED ENZYME TECHNOLOGIES share price has moved up from Rs 273.2 to Rs 291.2, registering a gain of Rs 18.1 or around 6.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,443.1 (up 0.8%). Over the last one year it has moved up from 22,591.9 to 26,443.1, a gain of 3,851 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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