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ARIHANT CAPITAL 2022-23 Annual Report Analysis
Mon, 17 Jul

ARIHANT CAPITAL 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.

ARIHANT CAPITAL Income Statement Analysis

  • Operating income during the year fell 19.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 37.7% in FY23 as against 43.3% in FY22.
  • Depreciation charges increased by 59.9% and finance costs increased by 48.4% YoY, respectively.
  • Other income declined by 17.8% YoY.
  • Net profit for the year declined by 42.2% YoY.
  • Net profit margins during the year declined from 29.7% in FY22 to 21.2% in FY23.

ARIHANT CAPITAL Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 1,698 1,375 -19.0%
Other income Rs m 3 2 -17.8%
Total Revenues Rs m 1,700 1,378 -19.0%
Gross profit Rs m 735 519 -29.4%
Depreciation Rs m 12 19 59.9%
Interest Rs m 73 108 48.4%
Profit before tax Rs m 653 394 -39.6%
Tax Rs m 149 103 -31.1%
Profit after tax Rs m 504 291 -42.2%
Gross profit margin % 43.3 37.7
Effective tax rate % 22.8 26.1
Net profit margin % 29.7 21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ARIHANT CAPITAL Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -24.1%.
  • Current assets fell 10% and stood at Rs 5 billion, while fixed assets fell 11% and stood at Rs 333 million in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 6 billion during FY22, thereby witnessing a fall of 10%.

ARIHANT CAPITAL Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 2,289 2,566 12.1
 
Current Liabilities Rs m 3,484 2,643 -24.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 5,786 5,220 -9.8
 
Current assets Rs m 5,410 4,887 -9.7
Fixed Assets Rs m 376 333 -11.4
Total Assets Rs m 5,786 5,220 -9.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ARIHANT CAPITAL Cash Flow Statement Analysis

  • ARIHANT CAPITAL's cash flow from operating activities (CFO) during FY23 stood at Rs 147 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -2 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -318 million on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -173 million from the Rs 128 million net cash flows seen during FY22.

ARIHANT CAPITAL 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 -181 147 -
Cash Flow from Investing Activities Rs m 130 -2 -
Cash Flow from Financing Activities Rs m 178 -318 -
Net Cash Flow Rs m 128 -173 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ARIHANT CAPITAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 24.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 39.4, stands at 14.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.2 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 81.5 13.2
TTM Earnings per share Rs 24.2 2.8
Diluted earnings per share Rs 4.8 2.8
Price to Cash Flow x 16.0 22.2
TTM P/E ratio x 16.7 14.2
Price / Book Value ratio x 2.5 2.7
Market Cap Rs m 5,633 6,872
Dividends per share (Unadj.) Rs 0.3 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ARIHANT CAPITAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x 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 deteriorated and stood at 4.6x during FY23, from 9.9x 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 declined and down at 11.3% during FY23, from 22.0% 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 declined and down at 19.6% during FY23, from 31.7% 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 declined and down at 7.7% during FY23, from 10.0% 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 1.8
Debtors’ Days Days 4,219 4,588
Interest coverage x 9.9 4.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.0 7.7
Return on equity % 22.0 11.3
Return on capital employed % 31.7 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ARIHANT CAPITAL Share Price Performance

Over the last one year, ARIHANT CAPITAL share price has moved down from Rs 75.0 to Rs 39.4, registering a loss of Rs 35.6 or around 47.5%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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

Annual Report FAQs

What is the current share price of ARIHANT CAPITAL?

ARIHANT CAPITAL currently trades at Rs 61.2 per share. You can check out the latest share price performance of ARIHANT CAPITAL here...

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

The revenues of ARIHANT CAPITAL stood at Rs 1,378 m in FY23, which was down -19.0% compared to Rs 1,700 m reported in FY22.

ARIHANT CAPITAL's revenue has grown from Rs 951 m in FY19 to Rs 1,378 m in FY23.

Over the past 5 years, the revenue of ARIHANT CAPITAL has grown at a CAGR of 9.7%.

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

The net profit of ARIHANT CAPITAL stood at Rs 291 m in FY23, which was down -42.2% compared to Rs 504 m reported in FY22.

This compares to a net profit of Rs 347 m in FY21 and a net profit of Rs 175 m in FY20.

Over the past 5 years, ARIHANT CAPITAL net profit has grown at a CAGR of 14.8%.

What does the cash flow statement of ARIHANT CAPITAL 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 ARIHANT CAPITAL reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 147 m as compared to Rs -181 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -2 m as compared to Rs 130 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -318 m as compared to Rs 178 m in FY22.

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

(Rs m)FY19FY20FY21FY22FY23
From Operations-401,183-317-181147
From Investments-40-24-68130-2
From Financial Activity34-775102178-318
Net Cashflow-47384-283128-173

What does the Key Ratio analysis of ARIHANT CAPITAL 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 ARIHANT CAPITAL reveals:

  • Operating profit margins witnessed a fall and stood at 37.7% in FY23 as against 43.3% in FY22.
  • Net profit margins declined from 29.7% in FY22 to 21.2% 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 ARIHANT CAPITAL for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)37.235.842.143.337.7
Net Profit Margin (%)17.819.230.029.721.2
Debt to Equity Ratio (x)0.00.00.00.00.0

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