ASHIANA HOUSING 2021-22 Annual Report Analysis

Tue, 6 Sep

ASHIANA HOUSING has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ASHIANA HOUSING Income Statement Analysis

• Operating income during the year fell 8.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.1% in FY22 as against 2.3% in FY21.
• Depreciation charges decreased by 5.7% and finance costs increased by 25.2% YoY, respectively.
• Other income declined by 24.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.7% in FY21 to 3.2% in FY22.

ASHIANA HOUSING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,420	2,217	-8.4%
Other income	Rs m	173	131	-24.2%
Total Revenues	Rs m	2,593	2,349	-9.4%
Gross profit	Rs m	55	-24	NA
Depreciation	Rs m	89	84	-5.7%
Interest	Rs m	136	170	25.2%
Profit before tax	Rs m	3	-146	NA
Tax	Rs m	-14	-76	NA
Profit after tax	Rs m	17	-70	NA
Gross profit margin	%	2.3	-1.1
Effective tax rate	%	-473.3	51.9
Net profit margin	%	0.7	-3.2

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ASHIANA HOUSING Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 83.9%.
• Long-term debt stood at Rs 2 billion as compared to Rs 466 million during FY21, a growth of 234.7%.
• Current assets rose 41% and stood at Rs 17 billion, while fixed assets rose 9% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 19 billion as against Rs 13 billion during FY21, thereby witnessing a growth of 38%.

ASHIANA HOUSING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,508	7,360	-2.0
Current Liabilities	Rs m	5,098	9,373	83.9
Long-term Debt	Rs m	466	1,559	234.7
Total Liabilities	Rs m	13,494	18,655	38.2
Current assets	Rs m	12,232	17,276	41.2
Fixed Assets	Rs m	1,261	1,379	9.3
Total Assets	Rs m	13,494	18,655	38.2

ASHIANA HOUSING Cash Flow Statement Analysis

• ASHIANA HOUSING's cash flow from operating activities (CFO) during FY22 stood at Rs -612 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -466 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 812 million, an improvement of 212% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -266 million from the Rs 608 million net cash flows seen during FY21.

ASHIANA HOUSING Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,211	-612	-
Cash Flow from Investing Activities	Rs m	123	-466	-
Cash Flow from Financing Activities	Rs m	-726	812	-
Net Cash Flow	Rs m	608	-266	-

Current Valuations for ASHIANA HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.7, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.0, stands at 224.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 7.1 times.
• The company's price to cash flow (P/CF) ratio stood at 1,209.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	23.6	21.7
TTM Earnings per share	Rs	0.2	-0.7
Diluted earnings per share	Rs	0.2	-0.7
Price to Cash Flow	x	127.3	1,209.7
TTM P/E ratio	x	-1,647.0	224.0
Price / Book Value ratio	x	1.3	2.2
Market Cap	Rs m	9,670	16,210
Dividends per share (Unadj.)	Rs	0.4	0.9

Ratio Analysis for ASHIANA HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY22, from 2.4x during FY21. 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 0.1x during FY22, from 1.0x during FY21. 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 -1.0% during FY22, from 0.2% during FY22. 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 0.3% during FY22, from 1.7% during FY21. 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 0.5% during FY22, from 1.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.4	1.8
Debtors’ Days	Days	409	409
Interest coverage	x	1.0	0.1
Debt to equity ratio	x	0.1	0.2
Return on assets	%	1.1	0.5
Return on equity	%	0.2	-1.0
Return on capital employed	%	1.7	0.3

To see how ASHIANA HOUSING has performed over the last 5 years, please visit here.

ASHIANA HOUSING Share Price Performance

Over the last one year, ASHIANA HOUSING share price has moved down from Rs 182.3 to Rs 153.0, registering a loss of Rs 29.3 or around 16.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,763.9 (up 0.4%). Over the last one year it has moved up from 3,423.1 to 3,763.9, a gain of 341 points (up 10.0%).

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for ASHIANA HOUSING and quarterly results for ASHIANA HOUSING)

Read: Latest Annual Report Analysis of ASHIANA HOUSING