AKI INDIA 2022-23 Annual Report Analysis

Wed, 8 Nov

AKI INDIA 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.

AKI INDIA Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY23 as against 4.4% in FY22.
• Depreciation charges decreased by 14.8% and finance costs increased by 44.9% YoY, respectively.
• Other income declined by 3.9% YoY.
• Net profit for the year declined by 29.8% YoY.
• Net profit margins during the year declined from 2.7% in FY22 to 1.6% in FY23.

AKI INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	609	702	15.4%
Other income	Rs m	27	26	-3.9%
Total Revenues	Rs m	636	728	14.5%
Gross profit	Rs m	27	29	8.2%
Depreciation	Rs m	22	19	-14.8%
Interest	Rs m	14	20	44.9%
Profit before tax	Rs m	17	16	-10.1%
Tax	Rs m	1	4	310.9%
Profit after tax	Rs m	16	12	-29.8%
Gross profit margin	%	4.4	4.2
Effective tax rate	%	5.8	26.4
Net profit margin	%	2.7	1.6

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AKI INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 381 million as compared to Rs 353 million in FY22, thereby witnessing an increase of 8.1%.
• Long-term debt down at Rs 101 million as compared to Rs 111 million during FY22, a fall of 8.9%.
• Current assets rose 9% and stood at Rs 455 million, while fixed assets fell 6% and stood at Rs 177 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 632 million as against Rs 605 million during FY22, thereby witnessing a growth of 4%.

AKI INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	141	150	6.6
Current Liabilities	Rs m	353	381	8.1
Long-term Debt	Rs m	111	101	-8.9
Total Liabilities	Rs m	605	632	4.4
Current assets	Rs m	416	455	9.2
Fixed Assets	Rs m	189	177	-6.2
Total Assets	Rs m	605	632	4.4

AKI INDIA Cash Flow Statement Analysis

• AKI INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 23 million, an improvement of 198.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -11 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs 1 million net cash flows seen during FY22.

AKI INDIA 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	8	23	198.0%
Cash Flow from Investing Activities	Rs m	-10	-9	-
Cash Flow from Financing Activities	Rs m	3	-11	-
Net Cash Flow	Rs m	1	2	102.7%

Current Valuations for AKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.5, stands at 124.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 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	59.1	52.5
TTM Earnings per share	Rs	1.6	0.9
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	9.3	6.2
TTM P/E ratio	x	21.9	124.7
Price / Book Value ratio	x	1.9	1.3
Market Cap	Rs m	264	189
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 1.8x during FY23, from 2.3x 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 7.7% during FY23, from 11.7% 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 14.3% during FY23, from 12.5% 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 5.0% during FY23, from 5.0% 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	1.2	1.2
Debtors’ Days	Days	1,063	1,033
Interest coverage	x	2.3	1.8
Debt to equity ratio	x	0.8	0.7
Return on assets	%	5.0	5.0
Return on equity	%	11.7	7.7
Return on capital employed	%	12.5	14.3

To see how AKI INDIA has performed over the last 5 years, please visit here.

AKI INDIA Share Price Performance

Over the last one year, AKI INDIA share price has moved up from Rs 0.0 to Rs 21.5, registering a gain of Rs 21.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 6.1% over the year.

(To know more, check out historical annual results for AKI INDIA and quarterly results for AKI INDIA)