AMRIT CORPORATION 2022-23 Annual Report Analysis

Fri, 23 Jun

AMRIT CORPORATION 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.

AMRIT CORPORATION Income Statement Analysis

• Operating income during the year rose 84.4% 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 down at 6.1% in FY23 as against 11.9% in FY22.
• Depreciation charges increased by 11.1% and finance costs increased by 194.5% YoY, respectively.
• Other income declined by 59.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 22.3% in FY22 to 0.5% in FY23.

AMRIT CORPORATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	588	1,084	84.4%
Other income	Rs m	249	101	-59.4%
Total Revenues	Rs m	837	1,185	41.6%
Gross profit	Rs m	-70	-66	NA
Depreciation	Rs m	26	28	11.1%
Interest	Rs m	7	21	194.5%
Profit before tax	Rs m	146	-14	NA
Tax	Rs m	15	-9	NA
Profit after tax	Rs m	131	-5	NA
Gross profit margin	%	-11.9	-6.1
Effective tax rate	%	10.3	62.9
Net profit margin	%	22.3	-0.5

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AMRIT CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 215 million as compared to Rs 74 million in FY22, thereby witnessing an increase of 188.4%.
• Long-term debt down at Rs 9 million as compared to Rs 264 million during FY22, a fall of 96.7%.
• Current assets fell 12% and stood at Rs 827 million, while fixed assets fell 4% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 7%.

AMRIT CORPORATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,050	2,010	-2.0
Current Liabilities	Rs m	74	215	188.4
Long-term Debt	Rs m	264	9	-96.7
Total Liabilities	Rs m	2,438	2,270	-6.9
Current assets	Rs m	939	827	-11.9
Fixed Assets	Rs m	1,500	1,443	-3.8
Total Assets	Rs m	2,438	2,270	-6.9

AMRIT CORPORATION Cash Flow Statement Analysis

• AMRIT CORPORATION's cash flow from operating activities (CFO) during FY23 stood at Rs 25 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 278 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -298 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 6 million from the Rs -10 million net cash flows seen during FY22.

AMRIT CORPORATION 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	-60	25	-
Cash Flow from Investing Activities	Rs m	-176	278	-
Cash Flow from Financing Activities	Rs m	226	-298	-
Net Cash Flow	Rs m	-10	6	-

Current Valuations for AMRIT CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.7, an decline from the EPS of Rs 43.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 938.0, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 117.0 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	193.4	356.6
TTM Earnings per share	Rs	43.2	-1.7
Diluted earnings per share	Rs	43.2	-1.7
Price to Cash Flow	x	17.0	117.0
TTM P/E ratio	x	20.3	21.7
Price / Book Value ratio	x	1.3	1.3
Market Cap	Rs m	2,708	2,704
Dividends per share (Unadj.)	Rs	7.5	4.0

Ratio Analysis for AMRIT CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY23, from 12.6x 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 0.3x during FY23, from 21.7x 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 -0.3% during FY23, from 6.4% 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 0.3% during FY23, from 6.6% 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 0.7% during FY23, from 5.7% 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	12.6	3.8
Debtors’ Days	Days	217	181
Interest coverage	x	21.7	0.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.7	0.7
Return on equity	%	6.4	-0.3
Return on capital employed	%	6.6	0.3

To see how AMRIT CORPORATION has performed over the last 5 years, please visit here.

AMRIT CORPORATION Share Price Performance

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(To know more, check out historical annual results for AMRIT CORPORATION and quarterly results for AMRIT CORPORATION)