ALPHALOGIC TECHSYS 2021-22 Annual Report Analysis

Tue, 9 Aug

ALPHALOGIC TECHSYS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ALPHALOGIC TECHSYS Income Statement Analysis

• Operating income during the year rose 113.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 582.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY22 as against 3.2% in FY21.
• Depreciation charges increased by 13.5% and finance costs increased by 92.1% YoY, respectively.
• Other income grew by 90.3% YoY.
• Net profit for the year grew by 198.3% YoY.
• Net profit margins during the year grew from 0.0% in FY21 to 17.7% in FY22.

ALPHALOGIC TECHSYS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	55	117	113.5%
Other income	Rs m	13	24	90.3%
Total Revenues	Rs m	68	141	109.1%
Gross profit	Rs m	2	12	582.9%
Depreciation	Rs m	0	0	13.5%
Interest	Rs m	5	9	92.1%
Profit before tax	Rs m	10	27	181.5%
Tax	Rs m	3	7	138.5%
Profit after tax	Rs m	7	21	198.3%
Gross profit margin	%	3.2	10.2
Effective tax rate	%	28.2	23.9
Net profit margin	%	0.0	17.7

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ALPHALOGIC TECHSYS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 67 million as compared to Rs 33 million in FY21, thereby witnessing an increase of 104.7%.
• Long-term debt stood at Rs 8 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 242% and stood at Rs 42 million, while fixed assets rose 70% and stood at Rs 219 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 262 million as against Rs 142 million during FY21, thereby witnessing a growth of 85%.

ALPHALOGIC TECHSYS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	109	185	70.2
Current Liabilities	Rs m	33	67	104.7
Long-term Debt	Rs m	0	8	0.0
Total Liabilities	Rs m	142	262	84.7
Current assets	Rs m	12	42	242.2
Fixed Assets	Rs m	129	219	69.6
Total Assets	Rs m	142	262	84.7

ALPHALOGIC TECHSYS Cash Flow Statement Analysis

• ALPHALOGIC TECHSYS's cash flow from operating activities (CFO) during FY22 stood at Rs -55 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -19 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 75 million, an improvement of 799% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY21.

ALPHALOGIC TECHSYS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7	-55	-
Cash Flow from Investing Activities	Rs m	4	-19	-
Cash Flow from Financing Activities	Rs m	-11	75	-
Net Cash Flow	Rs m	0	1	320.8%

Current Valuations for ALPHALOGIC TECHSYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 47.1, stands at 51.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 155.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	19.7	5.2
TTM Earnings per share	Rs	2.5	0.9
Diluted earnings per share	Rs	0.3	0.9
Price to Cash Flow	x	263.2	155.1
TTM P/E ratio	x	277.1	51.4
Price / Book Value ratio	x	2.1	17.7
Market Cap	Rs m	227	3,275
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALPHALOGIC TECHSYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY22, from 0.4x during FY21. 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 4.1x during FY22, from 3.1x during FY21. 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 11.2% during FY22, from 6.4% during FY22. 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 18.6% during FY22, from 13.1% during FY21. 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 11.3% during FY22, from 8.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.4	0.6
Debtors’ Days	Days	145	511
Interest coverage	x	3.1	4.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	11.3
Return on equity	%	6.4	11.2
Return on capital employed	%	13.1	18.6

To see how ALPHALOGIC TECHSYS has performed over the last 5 years, please visit here.

ALPHALOGIC TECHSYS Share Price Performance

Over the last one year, ALPHALOGIC TECHSYS share price has moved down from Rs 75.2 to Rs 47.1, registering a loss of Rs 28.1 or around 37.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,393.2 (up 0.0%). Over the last one year it has moved down from 31,800.6 to 30,393.2, a loss of 1,407 points (down 4.4%).

Overall, the S&P BSE SENSEX is up 8.0% over the year.

(To know more, check out historical annual results for ALPHALOGIC TECHSYS and quarterly results for ALPHALOGIC TECHSYS)

Read: Latest Annual Report Analysis of ALPHALOGIC TECHSYS