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ARCHIES 2022-23 Annual Report Analysis
Wed, 25 Oct

ARCHIES 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.

ARCHIES Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.2% in FY23 as against 7.0% in FY22.
  • Depreciation charges decreased by 19.1% and finance costs decreased by 9.2% YoY, respectively.
  • Other income grew by 35.7% YoY.
  • Net profit for the year declined by NA YoY.
  • Net profit margins during the year grew from 3.4% in FY22 to 2.8% in FY23.

ARCHIES Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 772 860 11.5%
Other income Rs m 89 121 35.7%
Total Revenues Rs m 861 981 14.0%
Gross profit Rs m 54 45 -17.6%
Depreciation Rs m 127 103 -19.1%
Interest Rs m 57 52 -9.2%
Profit before tax Rs m -41 11 NA
Tax Rs m -14 -13 NA
Profit after tax Rs m -26 24 NA
Gross profit margin % 7.0 5.2
Effective tax rate % 35.2 -116.0
Net profit margin % -3.4 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ARCHIES Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 415 million as compared to Rs 502 million in FY22, thereby witnessing an decrease of -17.3%.
  • Long-term debt down at Rs 7 million as compared to Rs 18 million during FY22, a fall of 58.5%.
  • Current assets fell 1% and stood at Rs 777 million, while fixed assets fell 10% and stood at Rs 928 million 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 6%.

ARCHIES Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 1,048 1,073 2.4
 
Current Liabilities Rs m 502 415 -17.3
Long-term Debt Rs m 18 7 -58.5
Total Liabilities Rs m 1,815 1,704 -6.1
 
Current assets Rs m 781 777 -0.5
Fixed Assets Rs m 1,034 928 -10.3
Total Assets Rs m 1,815 1,704 -6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ARCHIES Cash Flow Statement Analysis

  • ARCHIES's cash flow from operating activities (CFO) during FY23 stood at Rs 68 million, an improvement of 120.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs 98 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -166 million on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -1 million net cash flows seen during FY22.

ARCHIES 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 31 68 120.4%
Cash Flow from Investing Activities Rs m -8 98 -
Cash Flow from Financing Activities Rs m -24 -166 -
Net Cash Flow Rs m -1 -1 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ARCHIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an improvement from the EPS of Rs -0.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 23.1, stands at 36.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.8 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 22.8 25.5
TTM Earnings per share Rs -0.8 0.7
Diluted earnings per share Rs -0.8 0.7
Price to Cash Flow x 6.0 5.8
TTM P/E ratio x -22.8 36.8
Price / Book Value ratio x 0.6 0.7
Market Cap Rs m 665 732
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ARCHIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.6x 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 improved and stood at 1.2x during FY23, from 0.3x 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 2.2% during FY23, from -2.5% 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 5.8% during FY23, from 1.6% 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 improved and stood at 4.5% during FY23, from 1.7% 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 1.6 1.9
Debtors’ Days Days 435 375
Interest coverage x 0.3 1.2
Debt to equity ratio x 0.0 0.0
Return on assets % 1.7 4.5
Return on equity % -2.5 2.2
Return on capital employed % 1.6 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 20.2 to Rs 23.1, registering a gain of Rs 2.9 or around 14.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,451.8 (down 0.5%). Over the last one year it has moved up from 15,979.3 to 18,451.8, a gain of 2,472 points (up 15.5%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Annual Report FAQs

What is the current share price of ARCHIES?

ARCHIES currently trades at Rs 30.6 per share. You can check out the latest share price performance of ARCHIES here...

What was the revenue of ARCHIES in FY23? How does it compare to earlier years?

The revenues of ARCHIES stood at Rs 981 m in FY23, which was up 14.0% compared to Rs 861 m reported in FY22.

ARCHIES' revenue has fallen from Rs 1,632 m in FY19 to Rs 981 m in FY23.

Over the past 5 years, the revenue of ARCHIES has grown at a CAGR of -11.9%.

What was the net profit of ARCHIES in FY23? How does it compare to earlier years?

The net profit of ARCHIES stood at Rs 24 m in FY23, which was NA compared to Rs -26 m reported in FY22.

This compares to a net loss of Rs -24 m in FY21 and a net loss of Rs -72 m in FY20.

Over the past 5 years, ARCHIES net profit has grown at a CAGR of 35.0%.

What does the cash flow statement of ARCHIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ARCHIES reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 68 m as compared to Rs 31 m in FY22.
  • Cash flow from investments increased in FY23 and stood at Rs 98 m as compared to Rs -8 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -166 m as compared to Rs -24 m in FY22.

Here's the cash flow statement of ARCHIES for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations721021273168
From Investments-39-3458-898
From Financial Activity-25-78-187-24-166
Net Cashflow9-10-2-1-1

What does the Key Ratio analysis of ARCHIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ARCHIES reveals:

  • Operating profit margins witnessed a fall and stood at 5.2% in FY23 as against 7.0% in FY22.
  • Net profit margins grew from 3.4% in FY22 to 2.8% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of ARCHIES for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)3.211.5-6.87.05.2
Net Profit Margin (%)0.4-5.2-4.3-3.42.8
Debt to Equity Ratio (x)0.00.00.00.00.0

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