AKSH OPTIFIBRE 2022-23 Annual Report Analysis

Mon, 14 Aug

AKSH OPTIFIBRE 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.

AKSH OPTIFIBRE Income Statement Analysis

• Operating income during the year fell 9.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 16.0% in FY22.
• Depreciation charges increased by 3.1% and finance costs decreased by 27.8% YoY, respectively.
• Other income declined by 38.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.1% in FY22 to 4.7% in FY23.

AKSH OPTIFIBRE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,164	2,865	-9.4%
Other income	Rs m	45	28	-38.6%
Total Revenues	Rs m	3,209	2,893	-9.8%
Gross profit	Rs m	507	334	-34.1%
Depreciation	Rs m	238	246	3.1%
Interest	Rs m	255	185	-27.8%
Profit before tax	Rs m	59	-68	NA
Tax	Rs m	63	68	7.8%
Profit after tax	Rs m	-4	-136	NA
Gross profit margin	%	16.0	11.7
Effective tax rate	%	107.1	-100.0
Net profit margin	%	-0.1	-4.7

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AKSH OPTIFIBRE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -19.6%.
• Current assets fell 48% and stood at Rs 837 million, while fixed assets fell 7% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 21%.

AKSH OPTIFIBRE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,036	755	-27.1
Current Liabilities	Rs m	3,353	2,696	-19.6
Long-term Debt	Rs m	111	0	-100.0
Total Liabilities	Rs m	4,749	3,765	-20.7
Current assets	Rs m	1,612	837	-48.1
Fixed Assets	Rs m	3,137	2,928	-6.7
Total Assets	Rs m	4,749	3,765	-20.7

AKSH OPTIFIBRE Cash Flow Statement Analysis

• AKSH OPTIFIBRE's cash flow from operating activities (CFO) during FY23 stood at Rs 463 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -448 million, an improvement of 18% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -15 million from the Rs 37 million net cash flows seen during FY22.

AKSH OPTIFIBRE 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	569	463	-18.6%
Cash Flow from Investing Activities	Rs m	13	-30	-
Cash Flow from Financing Activities	Rs m	-545	-448	-
Net Cash Flow	Rs m	37	-15	-

Current Valuations for AKSH OPTIFIBRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11.0, stands at -10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	19.4	17.6
TTM Earnings per share	Rs	0.0	-0.8
Diluted earnings per share	Rs	0.0	-0.8
Price to Cash Flow	x	7.0	16.5
TTM P/E ratio	x	-393.4	-10.7
Price / Book Value ratio	x	1.7	2.4
Market Cap	Rs m	1,735	1,819
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AKSH OPTIFIBRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY23, from 0.5x 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 0.6x during FY23, from 1.2x 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 -18.0% during FY23, from -0.4% 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 15.5% during FY23, from 27.4% 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 1.3% during FY23, from 5.3% 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	0.5	0.3
Debtors’ Days	Days	906	495
Interest coverage	x	1.2	0.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.3	1.3
Return on equity	%	-0.4	-18.0
Return on capital employed	%	27.4	15.5

To see how AKSH OPTIFIBRE has performed over the last 5 years, please visit here.

AKSH OPTIFIBRE Share Price Performance

Over the last one year, AKSH OPTIFIBRE share price has moved up from Rs 9.4 to Rs 11.0, registering a gain of Rs 1.7 or around 17.6%.

Overall, the S&P BSE SENSEX is up 10.5% over the year.

(To know more, check out historical annual results for AKSH OPTIFIBRE and quarterly results for AKSH OPTIFIBRE)