ASHAPURA MINECHEM 2022-23 Annual Report Analysis

Tue, 3 Oct

ASHAPURA MINECHEM 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.

ASHAPURA MINECHEM Income Statement Analysis

• Operating income during the year rose 43.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY23 as against 9.2% in FY22.
• Depreciation charges increased by 24.8% and finance costs increased by 17.3% YoY, respectively.
• Other income declined by 9.9% YoY.
• Net profit for the year grew by 26.8% YoY.
• Net profit margins during the year declined from 6.8% in FY22 to 6.0% in FY23.

ASHAPURA MINECHEM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,778	18,308	43.3%
Other income	Rs m	956	861	-9.9%
Total Revenues	Rs m	13,734	19,170	39.6%
Gross profit	Rs m	1,182	1,938	64.0%
Depreciation	Rs m	581	726	24.8%
Interest	Rs m	579	679	17.3%
Profit before tax	Rs m	978	1,395	42.6%
Tax	Rs m	113	297	164.0%
Profit after tax	Rs m	865	1,097	26.8%
Gross profit margin	%	9.2	10.6
Effective tax rate	%	11.5	21.3
Net profit margin	%	6.8	6.0

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ASHAPURA MINECHEM Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 26.5%.
• Long-term debt stood at Rs 7 billion as compared to Rs 5 billion during FY22, a growth of 23.1%.
• Current assets rose 43% and stood at Rs 18 billion, while fixed assets rose 7% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 26%.

ASHAPURA MINECHEM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,212	6,550	25.7
Current Liabilities	Rs m	11,317	14,315	26.5
Long-term Debt	Rs m	5,289	6,510	23.1
Total Liabilities	Rs m	24,102	30,356	25.9
Current assets	Rs m	12,873	18,366	42.7
Fixed Assets	Rs m	11,229	11,990	6.8
Total Assets	Rs m	24,102	30,356	25.9

ASHAPURA MINECHEM Cash Flow Statement Analysis

• ASHAPURA MINECHEM's cash flow from operating activities (CFO) during FY23 stood at Rs 973 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 106.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 796 million, an improvement of 232% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 472 million from the Rs -91 million net cash flows seen during FY22.

ASHAPURA MINECHEM 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	1,143	973	-14.8%
Cash Flow from Investing Activities	Rs m	-629	-1,297	-
Cash Flow from Financing Activities	Rs m	-604	796	-
Net Cash Flow	Rs m	-91	472	-

Current Valuations for ASHAPURA MINECHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.0, an improvement from the EPS of Rs 9.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 292.0, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 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	139.7	200.1
TTM Earnings per share	Rs	9.5	12.0
Diluted earnings per share	Rs	9.5	12.0
Price to Cash Flow	x	8.0	6.2
TTM P/E ratio	x	16.6	16.9
Price / Book Value ratio	x	2.3	1.7
Market Cap	Rs m	12,136	11,331
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for ASHAPURA MINECHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.1x 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 3.1x during FY23, from 2.7x 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 16.8% during FY23, from 16.6% 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 15.9% during FY23, from 14.8% 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 5.9% during FY23, from 6.0% 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	1.1	1.3
Debtors’ Days	Days	886	977
Interest coverage	x	2.7	3.1
Debt to equity ratio	x	1.0	1.0
Return on assets	%	6.0	5.9
Return on equity	%	16.6	16.8
Return on capital employed	%	14.8	15.9

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

ASHAPURA MINECHEM Share Price Performance

Over the last one year, ASHAPURA MINECHEM share price has moved up from Rs 90.1 to Rs 292.0, registering a gain of Rs 201.9 or around 224.1%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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