AMARJOTHI SPINNING 2022-23 Annual Report Analysis

Tue, 7 Nov

AMARJOTHI SPINNING 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.

AMARJOTHI SPINNING Income Statement Analysis

• Operating income during the year fell 18.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY23 as against 14.2% in FY22.
• Depreciation charges decreased by 12.0% and finance costs increased by 14.3% YoY, respectively.
• Other income declined by 24.7% YoY.
• Net profit for the year declined by 52.5% YoY.
• Net profit margins during the year declined from 8.6% in FY22 to 5.0% in FY23.

AMARJOTHI SPINNING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,575	2,101	-18.4%
Other income	Rs m	18	13	-24.7%
Total Revenues	Rs m	2,592	2,115	-18.4%
Gross profit	Rs m	364	314	-13.8%
Depreciation	Rs m	101	88	-12.0%
Interest	Rs m	65	74	14.3%
Profit before tax	Rs m	217	165	-23.9%
Tax	Rs m	-5	60	NA
Profit after tax	Rs m	222	105	-52.5%
Gross profit margin	%	14.2	15.0
Effective tax rate	%	-2.3	36.2
Net profit margin	%	8.6	5.0

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AMARJOTHI SPINNING Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 401 million as compared to Rs 578 million in FY22, thereby witnessing an decrease of -30.7%.
• Long-term debt down at Rs 368 million as compared to Rs 582 million during FY22, a fall of 36.8%.
• Current assets fell 8% and stood at Rs 1 billion, while fixed assets fell 10% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 9%.

AMARJOTHI SPINNING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,701	1,768	3.9
Current Liabilities	Rs m	578	401	-30.7
Long-term Debt	Rs m	582	368	-36.8
Total Liabilities	Rs m	2,963	2,696	-9.0
Current assets	Rs m	1,240	1,146	-7.6
Fixed Assets	Rs m	1,723	1,550	-10.0
Total Assets	Rs m	2,963	2,696	-9.0

AMARJOTHI SPINNING Cash Flow Statement Analysis

• AMARJOTHI SPINNING's cash flow from operating activities (CFO) during FY23 stood at Rs 342 million, an improvement of 181.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 103 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -442 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs 4 million net cash flows seen during FY22.

AMARJOTHI SPINNING 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	121	342	181.7%
Cash Flow from Investing Activities	Rs m	-240	103	-
Cash Flow from Financing Activities	Rs m	123	-442	-
Net Cash Flow	Rs m	4	3	-23.0%

Current Valuations for AMARJOTHI SPINNING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an decline from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 163.5, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 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	381.4	311.3
TTM Earnings per share	Rs	32.9	15.6
Diluted earnings per share	Rs	32.9	15.6
Price to Cash Flow	x	3.9	6.2
TTM P/E ratio	x	7.3	10.5
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	1,083	1,195
Dividends per share (Unadj.)	Rs	2.2	2.2

Ratio Analysis for AMARJOTHI SPINNING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.1x 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 3.2x during FY23, from 4.4x 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 6.0% 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 declined and down at 11.2% during FY23, from 12.3% 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 6.6% during FY23, from 9.7% 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	2.1	2.9
Debtors’ Days	Days	509	594
Interest coverage	x	4.4	3.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.7	6.6
Return on equity	%	13.0	6.0
Return on capital employed	%	12.3	11.2

To see how AMARJOTHI SPINNING has performed over the last 5 years, please visit here.

AMARJOTHI SPINNING Share Price Performance

Over the last one year, AMARJOTHI SPINNING share price has moved down from Rs 188.6 to Rs 163.5, registering a loss of Rs 25.1 or around 13.3%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for AMARJOTHI SPINNING and quarterly results for AMARJOTHI SPINNING)