AHLUWALIA CONTRACTS 2022-23 Annual Report Analysis

Fri, 31 Mar

AHLUWALIA CONTRACTS 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.

AHLUWALIA CONTRACTS Income Statement Analysis

• Operating income during the year rose 5.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY23 as against 9.5% in FY22.
• Depreciation charges increased by 15.5% and finance costs decreased by 24.4% YoY, respectively.
• Other income grew by 0.3% YoY.
• Net profit for the year grew by 25.0% YoY.
• Net profit margins during the year grew from 5.8% in FY22 to 6.8% in FY23.

AHLUWALIA CONTRACTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,925	28,384	5.4%
Other income	Rs m	295	295	0.3%
Total Revenues	Rs m	27,219	28,679	5.4%
Gross profit	Rs m	2,563	3,040	18.6%
Depreciation	Rs m	336	388	15.5%
Interest	Rs m	437	331	-24.4%
Profit before tax	Rs m	2,084	2,617	25.6%
Tax	Rs m	532	677	27.3%
Profit after tax	Rs m	1,552	1,940	25.0%
Gross profit margin	%	9.5	10.7
Effective tax rate	%	25.5	25.9
Net profit margin	%	5.8	6.8

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

AHLUWALIA CONTRACTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 26.6%.
• Current assets rose 29% and stood at Rs 20 billion, while fixed assets rose 0% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 22%.

AHLUWALIA CONTRACTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,352	12,283	18.7
Current Liabilities	Rs m	8,818	11,161	26.6
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	20,198	24,666	22.1
Current assets	Rs m	15,582	20,042	28.6
Fixed Assets	Rs m	4,616	4,624	0.2
Total Assets	Rs m	20,198	24,666	22.1

AHLUWALIA CONTRACTS Cash Flow Statement Analysis

• AHLUWALIA CONTRACTS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 358.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 64.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -161 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -791 million net cash flows seen during FY22.

AHLUWALIA CONTRACTS 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	657	3,013	358.3%
Cash Flow from Investing Activities	Rs m	-1,007	-1,658	-
Cash Flow from Financing Activities	Rs m	-442	-161	-
Net Cash Flow	Rs m	-791	1,195	-

Current Valuations for AHLUWALIA CONTRACTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.0, an improvement from the EPS of Rs 23.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 578.0, stands at 19.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	401.9	423.7
TTM Earnings per share	Rs	23.2	29.0
Diluted earnings per share	Rs	23.2	29.0
Price to Cash Flow	x	16.7	13.7
TTM P/E ratio	x	20.3	19.9
Price / Book Value ratio	x	2.4	2.6
Market Cap	Rs m	25,253	31,901
Dividends per share (Unadj.)	Rs	0.3	0.4

Ratio Analysis for AHLUWALIA CONTRACTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.8x 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 8.9x during FY23, from 5.8x 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 15.8% during FY23, from 15.0% 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 24.0% during FY23, from 24.4% 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 9.2% during FY23, from 9.8% 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	1.8	1.8
Debtors’ Days	Days	600	780
Interest coverage	x	5.8	8.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.8	9.2
Return on equity	%	15.0	15.8
Return on capital employed	%	24.4	24.0

To see how AHLUWALIA CONTRACTS has performed over the last 5 years, please visit here.

AHLUWALIA CONTRACTS Share Price Performance

Over the last one year, AHLUWALIA CONTRACTS share price has moved up from Rs 470.7 to Rs 578.0, registering a gain of Rs 107.3 or around 22.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for AHLUWALIA CONTRACTS and quarterly results for AHLUWALIA CONTRACTS)