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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of AIA ENGINEERING?

AIA ENGINEERING currently trades at Rs 3,705.0 per share. You can check out the latest share price performance of AIA ENGINEERING here...

What was the revenue of AIA ENGINEERING in FY23? How does it compare to earlier years?

The revenues of AIA ENGINEERING stood at Rs 51,433 m in FY23, which was up 38.2% compared to Rs 37,228 m reported in FY22.

AIA ENGINEERING's revenue has grown from Rs 31,904 m in FY19 to Rs 51,433 m in FY23.

Over the past 5 years, the revenue of AIA ENGINEERING has grown at a CAGR of 12.7%.

What was the net profit of AIA ENGINEERING in FY23? How does it compare to earlier years?

The net profit of AIA ENGINEERING stood at Rs 10,565 m in FY23, which was up 70.5% compared to Rs 6,196 m reported in FY22.

This compares to a net profit of Rs 5,657 m in FY21 and a net profit of Rs 5,903 m in FY20.

Over the past 5 years, AIA ENGINEERING net profit has grown at a CAGR of 19.9%.

What does the cash flow statement of AIA ENGINEERING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AIA ENGINEERING reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 8,677 m as compared to Rs -395 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -12,083 m as compared to Rs 999 m in FY22.
  • Cash flow from financial activity increased in FY23 and stood at Rs 3,950 m as compared to Rs -2,672 m in FY22.

Here's the cash flow statement of AIA ENGINEERING for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations1,8976,7915,985-3958,677
From Investments-1,638-3,106-3,513999-12,083
From Financial Activity-1-4,288665-2,6723,950
Net Cashflow272-5983,137-2,055508

What does the Key Ratio analysis of AIA ENGINEERING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AIA ENGINEERING reveals:

  • Operating profit margins witnessed a fall and down at 25.4% in FY23 as against 20.3% in FY22.
  • Net profit margins grew from 17.4% in FY22 to 21.5% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of AIA ENGINEERING for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)21.623.122.920.325.4
Net Profit Margin (%)16.719.919.617.421.5
Debt to Equity Ratio (x)0.00.00.00.00.0

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