ANDHRA SUGAR 2022-23 Annual Report Analysis

Tue, 3 Oct

ANDHRA SUGAR 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.

ANDHRA SUGAR Income Statement Analysis

• Operating income during the year rose 20.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY23 as against 13.3% in FY22.
• Depreciation charges increased by 4.9% and finance costs decreased by 69.4% YoY, respectively.
• Other income declined by 24.2% YoY.
• Net profit for the year grew by 9.3% YoY.
• Net profit margins during the year declined from 8.6% in FY22 to 7.8% in FY23.

ANDHRA SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,616	23,676	20.7%
Other income	Rs m	381	289	-24.2%
Total Revenues	Rs m	19,997	23,965	19.8%
Gross profit	Rs m	2,616	2,881	10.1%
Depreciation	Rs m	640	671	4.9%
Interest	Rs m	135	41	-69.4%
Profit before tax	Rs m	2,222	2,458	10.6%
Tax	Rs m	543	622	14.5%
Profit after tax	Rs m	1,679	1,836	9.3%
Gross profit margin	%	13.3	12.2
Effective tax rate	%	24.4	25.3
Net profit margin	%	8.6	7.8

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ANDHRA SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -15.8%.
• Long-term debt down at Rs 36 million as compared to Rs 85 million during FY22, a fall of 58.0%.
• Current assets fell 7% and stood at Rs 10 billion, while fixed assets rose 3% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 22 billion during FY22, thereby witnessing a fall of 2%.

ANDHRA SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,186	15,413	1.5
Current Liabilities	Rs m	3,837	3,232	-15.8
Long-term Debt	Rs m	85	36	-58.0
Total Liabilities	Rs m	21,989	21,557	-2.0
Current assets	Rs m	10,741	9,944	-7.4
Fixed Assets	Rs m	11,248	11,613	3.2
Total Assets	Rs m	21,989	21,557	-2.0

ANDHRA SUGAR Cash Flow Statement Analysis

• ANDHRA SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 62.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 652.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -914 million, an improvement of 38% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -100 million from the Rs 16 million net cash flows seen during FY22.

ANDHRA SUGAR 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	1,765	2,858	62.0%
Cash Flow from Investing Activities	Rs m	-272	-2,044	-
Cash Flow from Financing Activities	Rs m	-1,477	-914	-
Net Cash Flow	Rs m	16	-100	-

Current Valuations for ANDHRA SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.0, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 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	144.7	174.7
TTM Earnings per share	Rs	12.4	13.5
Diluted earnings per share	Rs	12.4	13.5
Price to Cash Flow	x	9.0	7.5
TTM P/E ratio	x	12.4	11.5
Price / Book Value ratio	x	3.8	1.2
Market Cap	Rs m	57,589	18,802
Dividends per share (Unadj.)	Rs	4.0	2.0

Ratio Analysis for ANDHRA SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY23, from 2.8x 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 improved and stood at 60.6x during FY23, from 17.5x 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 11.9% during FY23, from 11.1% 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 improved and stood at 16.2% during FY23, from 15.4% 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 improved and stood at 8.7% during FY23, from 8.2% 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	2.8	3.1
Debtors’ Days	Days	446	357
Interest coverage	x	17.5	60.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	8.7
Return on equity	%	11.1	11.9
Return on capital employed	%	15.4	16.2

To see how ANDHRA SUGAR has performed over the last 5 years, please visit here.

ANDHRA SUGAR Share Price Performance

Over the last one year, ANDHRA SUGAR share price has moved down from Rs 137.1 to Rs 118.0, registering a loss of Rs 19.1 or around 13.9%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

(To know more, check out historical annual results for ANDHRA SUGAR and quarterly results for ANDHRA SUGAR)