AUNDE FAZE THREE 2022-23 Annual Report Analysis

Mon, 6 Nov

AUNDE FAZE THREE 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.

AUNDE FAZE THREE Income Statement Analysis

• Operating income during the year fell 14.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY23 as against 12.3% in FY22.
• Depreciation charges decreased by 3.0% and finance costs decreased by 18.9% YoY, respectively.
• Other income grew by 30.8% YoY.
• Net profit for the year declined by 66.0% YoY.
• Net profit margins during the year declined from 6.6% in FY22 to 2.6% in FY23.

AUNDE FAZE THREE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,960	1,685	-14.1%
Other income	Rs m	5	7	30.8%
Total Revenues	Rs m	1,966	1,692	-13.9%
Gross profit	Rs m	242	149	-38.2%
Depreciation	Rs m	54	53	-3.0%
Interest	Rs m	42	34	-18.9%
Profit before tax	Rs m	151	70	-53.8%
Tax	Rs m	21	26	20.1%
Profit after tax	Rs m	130	44	-66.0%
Gross profit margin	%	12.3	8.9
Effective tax rate	%	14.2	36.9
Net profit margin	%	6.6	2.6

Emerging Opportunity: Bluechip Bull Run

AUNDE FAZE THREE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 533 million as compared to Rs 711 million in FY22, thereby witnessing an decrease of -25.1%.
• Long-term debt down at Rs 179 million as compared to Rs 187 million during FY22, a fall of 4.6%.
• Current assets fell 13% and stood at Rs 819 million, while fixed assets fell 2% and stood at Rs 469 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1 billion during FY22, thereby witnessing a fall of 9%.

AUNDE FAZE THREE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	496	538	8.5
Current Liabilities	Rs m	711	533	-25.1
Long-term Debt	Rs m	187	179	-4.6
Total Liabilities	Rs m	1,416	1,288	-9.0
Current assets	Rs m	938	819	-12.7
Fixed Assets	Rs m	478	469	-2.0
Total Assets	Rs m	1,416	1,288	-9.0

AUNDE FAZE THREE Cash Flow Statement Analysis

• AUNDE FAZE THREE's cash flow from operating activities (CFO) during FY23 stood at Rs 135 million, an improvement of 159.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -43 million, an improvement of 38.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -173 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -81 million from the Rs 80 million net cash flows seen during FY22.

AUNDE FAZE THREE 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	52	135	159.5%
Cash Flow from Investing Activities	Rs m	-31	-43	-
Cash Flow from Financing Activities	Rs m	59	-173	-
Net Cash Flow	Rs m	80	-81	-

Current Valuations for AUNDE FAZE THREE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an decline from the EPS of Rs 12.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 93.5, stands at 37.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	182.9	157.2
TTM Earnings per share	Rs	12.1	4.1
Diluted earnings per share	Rs	12.1	4.1
Price to Cash Flow	x	5.8	9.8
TTM P/E ratio	x	8.2	37.1
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	1,149	944
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AUNDE FAZE THREE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x 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 3.1x during FY23, from 4.6x 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 8.2% during FY23, from 26.1% 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 14.5% during FY23, from 28.2% 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 6.1% 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	1.3	1.5
Debtors’ Days	Days	9	9
Interest coverage	x	4.6	3.1
Debt to equity ratio	x	0.4	0.3
Return on assets	%	12.1	6.1
Return on equity	%	26.1	8.2
Return on capital employed	%	28.2	14.5

To see how AUNDE FAZE THREE has performed over the last 5 years, please visit here.

AUNDE FAZE THREE Share Price Performance

Over the last one year, AUNDE FAZE THREE share price has moved down from Rs 106.3 to Rs 93.5, registering a loss of Rs 12.8 or around 12.0%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for AUNDE FAZE THREE and quarterly results for AUNDE FAZE THREE)