ARVIND SMARTSPACES 2022-23 Annual Report Analysis

Wed, 12 Jul

ARVIND SMARTSPACES 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.

ARVIND SMARTSPACES Income Statement Analysis

• Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY23 as against 18.8% in FY22.
• Depreciation charges increased by 79.6% and finance costs decreased by 16.9% YoY, respectively.
• Other income declined by 3.2% YoY.
• Net profit for the year grew by 12.3% YoY.
• Net profit margins during the year grew from 9.6% in FY22 to 10.9% in FY23.

ARVIND SMARTSPACES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,568	2,559	-0.4%
Other income	Rs m	76	73	-3.2%
Total Revenues	Rs m	2,644	2,633	-0.4%
Gross profit	Rs m	484	489	1.2%
Depreciation	Rs m	15	27	79.6%
Interest	Rs m	168	140	-16.9%
Profit before tax	Rs m	376	396	5.2%
Tax	Rs m	128	118	-8.6%
Profit after tax	Rs m	248	278	12.3%
Gross profit margin	%	18.8	19.1
Effective tax rate	%	34.2	29.7
Net profit margin	%	9.6	10.9

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ARVIND SMARTSPACES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 38.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 297 million during FY22, a growth of 381.0%.
• Current assets rose 35% and stood at Rs 13 billion, while fixed assets rose 17% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 33%.

ARVIND SMARTSPACES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,318	4,652	7.7
Current Liabilities	Rs m	6,273	8,690	38.5
Long-term Debt	Rs m	297	1,427	381.0
Total Liabilities	Rs m	11,108	14,802	33.3
Current assets	Rs m	9,956	13,449	35.1
Fixed Assets	Rs m	1,153	1,353	17.4
Total Assets	Rs m	11,108	14,802	33.3

ARVIND SMARTSPACES Cash Flow Statement Analysis

• ARVIND SMARTSPACES's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -815 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 953 million, an improvement of 229% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -873 million from the Rs 1 billion net cash flows seen during FY22.

ARVIND SMARTSPACES 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	1,606	-1,010	-
Cash Flow from Investing Activities	Rs m	293	-815	-
Cash Flow from Financing Activities	Rs m	-740	953	-
Net Cash Flow	Rs m	1,159	-873	-

Current Valuations for ARVIND SMARTSPACES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 350.0, stands at 57.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 36.4 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	60.5	56.5
TTM Earnings per share	Rs	5.8	6.1
Diluted earnings per share	Rs	5.5	6.1
Price to Cash Flow	x	35.3	36.4
TTM P/E ratio	x	36.4	57.0
Price / Book Value ratio	x	1.7	2.4
Market Cap	Rs m	7,232	11,109
Dividends per share (Unadj.)	Rs	0.0	3.3

Ratio Analysis for ARVIND SMARTSPACES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 3.8x during FY23, from 3.2x 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 6.0% during FY23, from 5.7% 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 8.8% during FY23, from 11.8% 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 2.8% during FY23, from 3.7% 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	1.5
Debtors’ Days	Days	15	39
Interest coverage	x	3.2	3.8
Debt to equity ratio	x	0.1	0.3
Return on assets	%	3.7	2.8
Return on equity	%	5.7	6.0
Return on capital employed	%	11.8	8.8

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

ARVIND SMARTSPACES Share Price Performance

Over the last one year, ARVIND SMARTSPACES share price has moved up from Rs 159.1 to Rs 350.0, registering a gain of Rs 190.9 or around 120.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,228.0 (up 0.3%). Over the last one year it has moved up from 3,325.9 to 4,228.0, a gain of 902 points (up 27.1%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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