AIA ENGINEERING 2022-23 Annual Report Analysis

Thu, 14 Sep

AIA ENGINEERING 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.

AIA ENGINEERING Income Statement Analysis

• Operating income during the year rose 37.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.4% in FY23 as against 20.3% in FY22.
• Depreciation charges increased by 1.0% and finance costs increased by 192.2% YoY, respectively.
• Other income grew by 50.1% YoY.
• Net profit for the year grew by 70.5% YoY.
• Net profit margins during the year grew from 17.4% in FY22 to 21.5% in FY23.

AIA ENGINEERING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	35,665	49,088	37.6%
Other income	Rs m	1,563	2,345	50.1%
Total Revenues	Rs m	37,228	51,433	38.2%
Gross profit	Rs m	7,256	12,454	71.6%
Depreciation	Rs m	921	930	1.0%
Interest	Rs m	85	248	192.2%
Profit before tax	Rs m	7,813	13,620	74.3%
Tax	Rs m	1,617	3,055	89.0%
Profit after tax	Rs m	6,196	10,565	70.5%
Gross profit margin	%	20.3	25.4
Effective tax rate	%	20.7	22.4
Net profit margin	%	17.4	21.5

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AIA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 12 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 148.8%.
• Current assets rose 44% and stood at Rs 56 billion, while fixed assets rose 3% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 84 billion as against Rs 66 billion during FY22, thereby witnessing a growth of 27%.

AIA ENGINEERING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	47,550	56,913	19.7
Current Liabilities	Rs m	4,639	11,542	148.8
Long-term Debt	Rs m	13	0	-100.0
Total Liabilities	Rs m	65,743	83,683	27.3
Current assets	Rs m	38,866	55,917	43.9
Fixed Assets	Rs m	26,877	27,767	3.3
Total Assets	Rs m	65,743	83,683	27.3

AIA ENGINEERING Cash Flow Statement Analysis

• AIA ENGINEERING's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 248% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 508 million from the Rs -2 billion net cash flows seen during FY22.

AIA ENGINEERING 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	-395	8,677	-
Cash Flow from Investing Activities	Rs m	999	-12,083	-
Cash Flow from Financing Activities	Rs m	-2,672	3,950	-
Net Cash Flow	Rs m	-2,055	508	-

Current Valuations for AIA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 112.0, an improvement from the EPS of Rs 65.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,608.4, stands at 29.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 18.8 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	378.1	520.4
TTM Earnings per share	Rs	65.7	112.0
Diluted earnings per share	Rs	65.7	112.0
Price to Cash Flow	x	21.6	18.8
TTM P/E ratio	x	24.8	29.9
Price / Book Value ratio	x	3.7	3.8
Market Cap	Rs m	174,304	215,682
Dividends per share (Unadj.)	Rs	9.0	16.0

Ratio Analysis for AIA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.8x during FY23, from 8.4x 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 55.8x during FY23, from 92.9x 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 improved and stood at 18.6% during FY23, from 13.0% 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 improved and stood at 24.4% during FY23, from 16.6% 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 12.9% during FY23, from 9.6% 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	8.4	4.8
Debtors’ Days	Days	819	640
Interest coverage	x	92.9	55.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	12.9
Return on equity	%	13.0	18.6
Return on capital employed	%	16.6	24.4

To see how AIA ENGINEERING has performed over the last 5 years, please visit here.

AIA ENGINEERING Share Price Performance

Over the last one year, AIA ENGINEERING share price has moved up from Rs 2,575.8 to Rs 3,608.4, registering a gain of Rs 1,032.6 or around 40.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,044.9 (up 0.7%). Over the last one year it has moved up from 33,562.1 to 47,044.9, a gain of 13,483 points (up 40.2%).

Overall, the S&P BSE SENSEX is up 12.2% over the year.

(To know more, check out historical annual results for AIA ENGINEERING and quarterly results for AIA ENGINEERING)