ASHOKA BUILDCON 2022-23 Annual Report Analysis

Thu, 5 Oct

ASHOKA BUILDCON 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.

ASHOKA BUILDCON Income Statement Analysis

• Operating income during the year rose 35.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.4% in FY23 as against 35.4% in FY22.
• Depreciation charges increased by 0.8% and finance costs increased by 10.0% YoY, respectively.
• Other income declined by 9.2% YoY.
• Net profit for the year declined by 51.7% YoY.
• Net profit margins during the year declined from 12.9% in FY22 to 4.6% in FY23.

ASHOKA BUILDCON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	59,990	81,005	35.0%
Other income	Rs m	1,482	1,346	-9.2%
Total Revenues	Rs m	61,472	82,351	34.0%
Gross profit	Rs m	21,260	18,985	-10.7%
Depreciation	Rs m	3,382	3,411	0.8%
Interest	Rs m	10,038	11,038	10.0%
Profit before tax	Rs m	9,322	5,882	-36.9%
Tax	Rs m	1,608	2,153	33.9%
Profit after tax	Rs m	7,714	3,729	-51.7%
Gross profit margin	%	35.4	23.4
Effective tax rate	%	17.2	36.6
Net profit margin	%	12.9	4.6

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ASHOKA BUILDCON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 44 billion as compared to Rs 35 billion in FY22, thereby witnessing an increase of 26.6%.
• Long-term debt down at Rs 8 billion as compared to Rs 29 billion during FY22, a fall of 74.0%.
• Current assets fell 0% and stood at Rs 48 billion, while fixed assets fell 70% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 171 billion as against Rs 154 billion during FY22, thereby witnessing a growth of 11%.

ASHOKA BUILDCON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,808	17,546	27.1
Current Liabilities	Rs m	34,598	43,800	26.6
Long-term Debt	Rs m	29,364	7,640	-74.0
Total Liabilities	Rs m	153,746	170,655	11.0
Current assets	Rs m	47,995	47,826	-0.4
Fixed Assets	Rs m	40,107	12,141	-69.7
Total Assets	Rs m	153,746	170,655	11.0

ASHOKA BUILDCON Cash Flow Statement Analysis

• ASHOKA BUILDCON's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 39.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 33.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 852 million net cash flows seen during FY22.

ASHOKA BUILDCON 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	3,528	4,922	39.5%
Cash Flow from Investing Activities	Rs m	-2,326	-3,107	-
Cash Flow from Financing Activities	Rs m	-350	-3,112	-
Net Cash Flow	Rs m	852	-1,296	-

Current Valuations for ASHOKA BUILDCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an decline from the EPS of Rs 27.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.0, stands at 11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 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	213.7	288.6
TTM Earnings per share	Rs	27.5	13.3
Diluted earnings per share	Rs	27.5	13.3
Price to Cash Flow	x	2.2	3.2
TTM P/E ratio	x	3.2	11.4
Price / Book Value ratio	x	2.1	1.3
Market Cap	Rs m	28,550	23,118
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASHOKA BUILDCON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 deteriorated and stood at 1.5x during FY23, from 1.9x 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 21.3% during FY23, from 55.9% 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 67.2% during FY23, from 44.8% 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 8.7% during FY23, from 11.5% 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	1.1
Debtors’ Days	Days	465	410
Interest coverage	x	1.9	1.5
Debt to equity ratio	x	2.1	0.4
Return on assets	%	11.5	8.7
Return on equity	%	55.9	21.3
Return on capital employed	%	44.8	67.2

To see how ASHOKA BUILDCON has performed over the last 5 years, please visit here.

ASHOKA BUILDCON Share Price Performance

Over the last one year, ASHOKA BUILDCON share price has moved up from Rs 79.7 to Rs 127.0, registering a gain of Rs 47.3 or around 59.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,557.4 (up 0.4%). Over the last one year it has moved up from 3,410.0 to 4,557.4, a gain of 1,147 points (up 33.6%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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