ALOK INDUSTRIES 2022-23 Annual Report Analysis

Tue, 26 Sep

ALOK INDUSTRIES 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.

ALOK INDUSTRIES Income Statement Analysis

• Operating income during the year fell 5.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.1% in FY23 as against 7.7% in FY22.
• Depreciation charges increased by 6.6% and finance costs increased by 5.3% YoY, respectively.
• Other income grew by 44.1% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 2.9% in FY22 to 12.7% in FY23.

ALOK INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	73,095	69,373	-5.1%
Other income	Rs m	449	647	44.1%
Total Revenues	Rs m	73,544	70,020	-4.8%
Gross profit	Rs m	5,640	-785	NA
Depreciation	Rs m	3,422	3,649	6.6%
Interest	Rs m	4,762	5,012	5.3%
Profit before tax	Rs m	-2,094	-8,800	NA
Tax	Rs m	-8	5	NA
Profit after tax	Rs m	-2,086	-8,805	NA
Gross profit margin	%	7.7	-1.1
Effective tax rate	%	0.4	-0.1
Net profit margin	%	-2.9	-12.7

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ALOK INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 44 billion as compared to Rs 36 billion in FY22, thereby witnessing an increase of 22.2%.
• Long-term debt down at Rs 218 billion as compared to Rs 224 billion during FY22, a fall of 2.7%.
• Current assets fell 20% and stood at Rs 18 billion, while fixed assets fell 5% and stood at Rs 56 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 75 billion as against Rs 82 billion during FY22, thereby witnessing a fall of 9%.

ALOK INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-179,073	-189,004	NA
Current Liabilities	Rs m	36,107	44,127	22.2
Long-term Debt	Rs m	224,350	218,307	-2.7
Total Liabilities	Rs m	82,215	74,544	-9.3
Current assets	Rs m	22,660	18,076	-20.2
Fixed Assets	Rs m	59,555	56,467	-5.2
Total Assets	Rs m	82,215	74,544	-9.3

ALOK INDUSTRIES Cash Flow Statement Analysis

• ALOK INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 261.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -126 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -31 million from the Rs -2 billion net cash flows seen during FY22.

ALOK INDUSTRIES 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	2,248	8,133	261.7%
Cash Flow from Investing Activities	Rs m	-669	-126	-
Cash Flow from Financing Activities	Rs m	-2,932	-6,869	-
Net Cash Flow	Rs m	-1,767	-31	-

Current Valuations for ALOK INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.8, an decline from the EPS of Rs -0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.8, stands at -9.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at -19.2 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	14.7	14.0
TTM Earnings per share	Rs	-0.4	-1.8
Diluted earnings per share	Rs	-0.4	-1.8
Price to Cash Flow	x	94.2	-19.2
TTM P/E ratio	x	-60.6	-9.7
Price / Book Value ratio	x	-0.7	-0.5
Market Cap	Rs m	134,186	98,982
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALOK INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.6x 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 -0.8x during FY23, from 0.6x 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 4.7% during FY23, from 1.2% 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 -12.9% during FY23, from 5.9% 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 -5.1% during FY23, from 3.3% 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	0.6	0.4
Debtors’ Days	Days	3	2
Interest coverage	x	0.6	-0.8
Debt to equity ratio	x	-1.3	-1.2
Return on assets	%	3.3	-5.1
Return on equity	%	1.2	4.7
Return on capital employed	%	5.9	-12.9

To see how ALOK INDUSTRIES has performed over the last 5 years, please visit here.

ALOK INDUSTRIES Share Price Performance

Over the last one year, ALOK INDUSTRIES share price has moved up from Rs 18.7 to Rs 18.8, registering a gain of Rs 0.1 or around 0.5%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for ALOK INDUSTRIES and quarterly results for ALOK INDUSTRIES)