ARCHIDPLY INDUS. 2022-23 Annual Report Analysis

Wed, 25 Oct

ARCHIDPLY INDUS. 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.

ARCHIDPLY INDUS. Income Statement Analysis

• Operating income during the year rose 37.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY23 as against 6.3% in FY22.
• Depreciation charges decreased by 0.5% and finance costs increased by 23.2% YoY, respectively.
• Other income grew by 218.9% YoY.
• Net profit for the year grew by 44.9% YoY.
• Net profit margins during the year grew from 2.8% in FY22 to 2.9% in FY23.

ARCHIDPLY INDUS. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,063	4,217	37.7%
Other income	Rs m	9	29	218.9%
Total Revenues	Rs m	3,072	4,246	38.2%
Gross profit	Rs m	194	235	20.8%
Depreciation	Rs m	40	40	-0.5%
Interest	Rs m	47	58	23.2%
Profit before tax	Rs m	116	165	42.4%
Tax	Rs m	32	43	35.9%
Profit after tax	Rs m	85	123	44.9%
Gross profit margin	%	6.3	5.6
Effective tax rate	%	27.2	26.0
Net profit margin	%	2.8	2.9

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ARCHIDPLY INDUS. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 15.0%.
• Long-term debt stood at Rs 191 million as compared to Rs 0 million during FY22, a growth of 68214.3%.
• Current assets rose 5% and stood at Rs 2 billion, while fixed assets rose 84% and stood at Rs 926 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 24%.

ARCHIDPLY INDUS. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	922	1,038	12.5
Current Liabilities	Rs m	1,054	1,212	15.0
Long-term Debt	Rs m	0	191	68,214.3
Total Liabilities	Rs m	2,009	2,501	24.5
Current assets	Rs m	1,505	1,574	4.6
Fixed Assets	Rs m	503	926	83.9
Total Assets	Rs m	2,009	2,501	24.5

ARCHIDPLY INDUS. Cash Flow Statement Analysis

• ARCHIDPLY INDUS.'s cash flow from operating activities (CFO) during FY23 stood at Rs 211 million, an improvement of 86.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -491 million, an improvement of 6,115.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 263 million, an improvement of 274% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -17 million from the Rs -45 million net cash flows seen during FY22.

ARCHIDPLY INDUS. 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	113	211	86.0%
Cash Flow from Investing Activities	Rs m	-8	-491	-
Cash Flow from Financing Activities	Rs m	-151	263	-
Net Cash Flow	Rs m	-45	-17	-

Current Valuations for ARCHIDPLY INDUS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 86.8, stands at 16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	154.1	212.3
TTM Earnings per share	Rs	4.3	6.2
Diluted earnings per share	Rs	4.3	6.2
Price to Cash Flow	x	6.2	8.7
TTM P/E ratio	x	9.2	16.8
Price / Book Value ratio	x	1.0	1.4
Market Cap	Rs m	889	1,419
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARCHIDPLY INDUS.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.4x 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 3.9x during FY23, from 3.5x 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 11.8% during FY23, from 9.2% 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 18.1% during FY23, from 17.7% 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 7.2% during FY23, from 6.5% 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	1.4	1.3
Debtors’ Days	Days	975	797
Interest coverage	x	3.5	3.9
Debt to equity ratio	x	0.0	0.2
Return on assets	%	6.5	7.2
Return on equity	%	9.2	11.8
Return on capital employed	%	17.7	18.1

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

ARCHIDPLY INDUS. Share Price Performance

Over the last one year, ARCHIDPLY INDUS. share price has moved up from Rs 77.0 to Rs 86.8, registering a gain of Rs 9.8 or around 12.7%.

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

(To know more, check out historical annual results for ARCHIDPLY INDUS. and quarterly results for ARCHIDPLY INDUS.)