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AFFLE (INDIA) 2022-23 Annual Report Analysis

Thu, 31 Aug

AFFLE (INDIA) 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.

AFFLE (INDIA) Income Statement Analysis

• Operating income during the year rose 32.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.8% in FY23 as against 19.5% in FY22.
• Depreciation charges increased by 52.3% and finance costs increased by 61.4% YoY, respectively.
• Other income declined by 20.7% YoY.
• Net profit for the year grew by 14.3% YoY.
• Net profit margins during the year declined from 19.8% in FY22 to 17.1% in FY23.

AFFLE (INDIA) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,817	14,340	32.6%
Other income	Rs m	732	580	-20.7%
Total Revenues	Rs m	11,548	14,920	29.2%
Gross profit	Rs m	2,111	2,844	34.7%
Depreciation	Rs m	324	494	52.3%
Interest	Rs m	71	114	61.4%
Profit before tax	Rs m	2,448	2,816	15.0%
Tax	Rs m	301	361	19.9%
Profit after tax	Rs m	2,147	2,455	14.3%
Gross profit margin	%	19.5	19.8
Effective tax rate	%	12.3	12.8
Net profit margin	%	19.8	17.1

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AFFLE (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -5.9%.
• Long-term debt down at Rs 521 million as compared to Rs 891 million during FY22, a fall of 41.6%.
• Current assets rose 23% and stood at Rs 12 billion, while fixed assets fell 0% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 12%.

AFFLE (INDIA) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,748	14,551	23.9
Current Liabilities	Rs m	4,288	4,033	-5.9
Long-term Debt	Rs m	891	521	-41.6
Total Liabilities	Rs m	18,398	20,571	11.8
Current assets	Rs m	9,429	11,639	23.4
Fixed Assets	Rs m	8,969	8,932	-0.4
Total Assets	Rs m	18,398	20,571	11.8

AFFLE (INDIA) Cash Flow Statement Analysis

• AFFLE (INDIA)'s cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 26.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -590 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 157 million from the Rs 3 billion net cash flows seen during FY22.

AFFLE (INDIA) 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	2,060	2,603	26.4%
Cash Flow from Investing Activities	Rs m	-5,559	-1,974	-
Cash Flow from Financing Activities	Rs m	6,150	-590	-
Net Cash Flow	Rs m	2,672	157	-94.1%

Current Valuations for AFFLE (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an improvement from the EPS of Rs 16.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,080.4, stands at 56.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at 50.6 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	81.2	107.7
TTM Earnings per share	Rs	16.1	18.4
Diluted earnings per share	Rs	16.1	18.4
Price to Cash Flow	x	67.9	50.6
TTM P/E ratio	x	78.0	56.1
Price / Book Value ratio	x	39.0	10.3
Market Cap	Rs m	458,051	149,172
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AFFLE (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.2x 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 25.6x during FY23, from 35.6x 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 16.9% during FY23, from 18.3% 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 19.4% during FY23, from 19.9% 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 improved and stood at 12.5% during FY23, from 12.1% 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	2.2	2.9
Debtors’ Days	Days	79	62
Interest coverage	x	35.6	25.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.1	12.5
Return on equity	%	18.3	16.9
Return on capital employed	%	19.9	19.4

To see how AFFLE (INDIA) has performed over the last 5 years, please visit here.

AFFLE (INDIA) Share Price Performance

Over the last one year, AFFLE (INDIA) share price has moved down from Rs 1,307.8 to Rs 1,080.4, registering a loss of Rs 227.4 or around 17.4%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for AFFLE (INDIA) and quarterly results for AFFLE (INDIA))