APTECH 2022-23 Annual Report Analysis

Mon, 9 Oct

APTECH 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.

APTECH Income Statement Analysis

• Operating income during the year rose 102.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 78.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.7% in FY23 as against 16.6% in FY22.
• Depreciation charges decreased by 21.7% and finance costs increased by 112.7% YoY, respectively.
• Other income grew by 54.7% YoY.
• Net profit for the year grew by 36.9% YoY.
• Net profit margins during the year declined from 21.9% in FY22 to 14.8% in FY23.

APTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,261	4,569	102.1%
Other income	Rs m	145	224	54.7%
Total Revenues	Rs m	2,406	4,793	99.2%
Gross profit	Rs m	376	672	78.5%
Depreciation	Rs m	83	65	-21.7%
Interest	Rs m	4	8	112.7%
Profit before tax	Rs m	434	823	89.4%
Tax	Rs m	-60	146	NA
Profit after tax	Rs m	494	677	36.9%
Gross profit margin	%	16.6	14.7
Effective tax rate	%	-13.8	17.7
Net profit margin	%	21.9	14.8

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APTECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 983 million in FY22, thereby witnessing an increase of 140.2%.
• Current assets rose 64% and stood at Rs 3 billion, while fixed assets rose 51% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 61%.

APTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,070	2,547	23.0
Current Liabilities	Rs m	983	2,362	140.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,862	4,606	60.9
Current assets	Rs m	2,129	3,496	64.2
Fixed Assets	Rs m	733	1,109	51.3
Total Assets	Rs m	2,862	4,606	60.9

APTECH Cash Flow Statement Analysis

• APTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 987 million, an improvement of 119.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -542 million, an improvement of 5,471.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -208 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 238 million from the Rs 379 million net cash flows seen during FY22.

APTECH 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	450	987	119.4%
Cash Flow from Investing Activities	Rs m	-10	-542	-
Cash Flow from Financing Activities	Rs m	-61	-208	-
Net Cash Flow	Rs m	379	238	-37.4%

Current Valuations for APTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.3, an improvement from the EPS of Rs 12.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.7, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	54.7	110.3
TTM Earnings per share	Rs	12.0	16.3
Diluted earnings per share	Rs	8.5	11.7
Price to Cash Flow	x	24.4	11.7
TTM P/E ratio	x	33.8	22.0
Price / Book Value ratio	x	6.3	3.4
Market Cap	Rs m	13,096	8,646
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for APTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 2.2x 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 105.5x during FY23, from 118.4x 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 improved and stood at 26.6% during FY23, from 23.9% 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 32.6% during FY23, from 21.2% 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 14.9% during FY23, from 17.4% 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	2.2	1.5
Debtors’ Days	Days	1,180	445
Interest coverage	x	118.4	105.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	14.9
Return on equity	%	23.9	26.6
Return on capital employed	%	21.2	32.6

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

APTECH Share Price Performance

Over the last one year, APTECH share price has moved up from Rs 193.1 to Rs 275.7, registering a gain of Rs 82.6 or around 42.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,584.2 (down 0.2%). Over the last one year it has moved up from 28,188.7 to 32,584.2, a gain of 4,396 points (up 15.6%).

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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