ALU FLUORIDE 2022-23 Annual Report Analysis

Wed, 28 Jun

ALU FLUORIDE 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.

ALU FLUORIDE Income Statement Analysis

• Operating income during the year rose 54.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 101.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY23 as against 15.2% in FY22.
• Depreciation charges increased by 16.8% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 98.9% YoY.
• Net profit for the year grew by 254.4% YoY.
• Net profit margins during the year grew from 4.0% in FY22 to 9.2% in FY23.

ALU FLUORIDE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	880	1,361	54.8%
Other income	Rs m	7	13	98.9%
Total Revenues	Rs m	886	1,374	55.1%
Gross profit	Rs m	134	269	101.3%
Depreciation	Rs m	63	74	16.8%
Interest	Rs m	27	29	7.5%
Profit before tax	Rs m	50	179	260.4%
Tax	Rs m	14	54	274.8%
Profit after tax	Rs m	35	125	254.4%
Gross profit margin	%	15.2	19.7
Effective tax rate	%	28.9	30.1
Net profit margin	%	4.0	9.2

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ALU FLUORIDE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 187 million as compared to Rs 178 million in FY22, thereby witnessing an increase of 5.2%.
• Long-term debt down at Rs 149 million as compared to Rs 160 million during FY22, a fall of 7.1%.
• Current assets rose 37% and stood at Rs 452 million, while fixed assets rose 3% and stood at Rs 689 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1,000 million during FY22, thereby witnessing a growth of 14%.

ALU FLUORIDE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	556	680	22.3
Current Liabilities	Rs m	178	187	5.2
Long-term Debt	Rs m	160	149	-7.1
Total Liabilities	Rs m	1,000	1,141	14.1
Current assets	Rs m	330	452	37.0
Fixed Assets	Rs m	670	689	2.9
Total Assets	Rs m	1,000	1,141	14.1

ALU FLUORIDE Cash Flow Statement Analysis

• ALU FLUORIDE's cash flow from operating activities (CFO) during FY23 stood at Rs 202 million, an improvement of 452.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -181 million, an improvement of 213.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -15 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 6 million from the Rs -67 million net cash flows seen during FY22.

ALU FLUORIDE 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	37	202	452.0%
Cash Flow from Investing Activities	Rs m	-58	-181	-
Cash Flow from Financing Activities	Rs m	-46	-15	-
Net Cash Flow	Rs m	-67	6	-

Current Valuations for ALU FLUORIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.0, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 416.9, stands at 26.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	112.5	174.1
TTM Earnings per share	Rs	4.5	16.0
Diluted earnings per share	Rs	4.5	16.0
Price to Cash Flow	x	23.9	10.9
TTM P/E ratio	x	67.5	26.3
Price / Book Value ratio	x	4.3	3.2
Market Cap	Rs m	2,394	2,170
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for ALU FLUORIDE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.9x 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 improved and stood at 7.1x during FY23, from 2.8x 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 improved and stood at 18.4% during FY23, from 6.3% 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 improved and stood at 25.1% during FY23, from 10.7% 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 13.5% during FY23, from 6.2% 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	1.9	2.4
Debtors’ Days	Days	560	368
Interest coverage	x	2.8	7.1
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.2	13.5
Return on equity	%	6.3	18.4
Return on capital employed	%	10.7	25.1

To see how ALU FLUORIDE has performed over the last 5 years, please visit here.

ALU FLUORIDE Share Price Performance

Over the last one year, ALU FLUORIDE share price has moved up from Rs 231.8 to Rs 416.9, registering a gain of Rs 185.1 or around 79.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,339.6 (up 1.0%). Over the last one year it has moved up from 15,859.5 to 20,339.6, a gain of 4,480 points (up 28.2%).

Overall, the S&P BSE SENSEX is up 19.3% over the year.

(To know more, check out historical annual results for ALU FLUORIDE and quarterly results for ALU FLUORIDE)