ARCHIES 2021-22 Annual Report Analysis

Fri, 7 Oct

ARCHIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ARCHIES Income Statement Analysis

• Operating income during the year rose 39.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.0% in FY22 as against 6.8% in FY21.
• Depreciation charges decreased by 26.1% and finance costs decreased by 23.4% YoY, respectively.
• Other income declined by 63.4% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 4.3% in FY21 to 3.4% in FY22.

ARCHIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	553	772	39.6%
Other income	Rs m	243	89	-63.4%
Total Revenues	Rs m	796	861	8.1%
Gross profit	Rs m	-37	54	NA
Depreciation	Rs m	171	127	-26.1%
Interest	Rs m	75	57	-23.4%
Profit before tax	Rs m	-40	-41	NA
Tax	Rs m	-16	-14	NA
Profit after tax	Rs m	-24	-26	NA
Gross profit margin	%	-6.8	7.0
Effective tax rate	%	41.0	35.2
Net profit margin	%	-4.3	-3.4

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ARCHIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 502 million as compared to Rs 433 million in FY21, thereby witnessing an increase of 16.0%.
• Long-term debt down at Rs 18 million as compared to Rs 27 million during FY21, a fall of 35.2%.
• Current assets rose 8% and stood at Rs 781 million, while fixed assets fell 10% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a fall of 3%.

ARCHIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,076	1,048	-2.6
Current Liabilities	Rs m	433	502	16.0
Long-term Debt	Rs m	27	18	-35.2
Total Liabilities	Rs m	1,871	1,815	-3.0
Current assets	Rs m	721	781	8.3
Fixed Assets	Rs m	1,151	1,034	-10.1
Total Assets	Rs m	1,871	1,815	-3.0

ARCHIES Cash Flow Statement Analysis

• ARCHIES's cash flow from operating activities (CFO) during FY22 stood at Rs 31 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -24 million, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs -2 million net cash flows seen during FY21.

ARCHIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	127	31	-75.8%
Cash Flow from Investing Activities	Rs m	58	-8	-
Cash Flow from Financing Activities	Rs m	-187	-24	-
Net Cash Flow	Rs m	-2	-1	-

Current Valuations for ARCHIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an decline from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.7, stands at -25.2 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	16.4	22.8
TTM Earnings per share	Rs	-0.7	-0.8
Diluted earnings per share	Rs	-0.7	-0.8
Price to Cash Flow	x	2.3	6.6
TTM P/E ratio	x	-14.4	-25.2
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	405	665
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARCHIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.7x during FY21. 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 FY22, from 0.5x during FY21. 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 -2.5% during FY22, from -2.2% during FY22. 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 1.6% during FY22, from 3.1% during FY21. 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 1.7% during FY22, from 2.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	1.6
Debtors’ Days	Days	688	435
Interest coverage	x	0.5	0.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.7	1.7
Return on equity	%	-2.2	-2.5
Return on capital employed	%	3.1	1.6

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

ARCHIES Share Price Performance

Over the last one year, ARCHIES share price has moved up from Rs 19.0 to Rs 19.7, registering a gain of Rs 0.7 or around 3.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 16,025.8 (down 0.5%). Over the last one year it has moved up from 14,800.5 to 16,025.8, a gain of 1,225 points (up 8.3%).

Overall, the S&P BSE SENSEX is down 1.7% over the year.

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

Read: Latest Annual Report Analysis of ARCHIES