ASHIANA HOUSING 2022-23 Annual Report Analysis

Wed, 4 Oct

ASHIANA HOUSING 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.

ASHIANA HOUSING Income Statement Analysis

• Operating income during the year rose 83.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.9% in FY23 as against 1.0% in FY22.
• Depreciation charges increased by 0.5% and finance costs increased by 62.4% YoY, respectively.
• Other income grew by 36.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.2% in FY22 to 6.8% in FY23.

ASHIANA HOUSING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,217	4,074	83.7%
Other income	Rs m	131	178	36.5%
Total Revenues	Rs m	2,348	4,252	81.1%
Gross profit	Rs m	-23	525	NA
Depreciation	Rs m	84	84	0.5%
Interest	Rs m	170	276	62.4%
Profit before tax	Rs m	-146	343	NA
Tax	Rs m	-76	64	NA
Profit after tax	Rs m	-70	279	NA
Gross profit margin	%	-1.0	12.9
Effective tax rate	%	51.9	18.8
Net profit margin	%	-3.2	6.8

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ASHIANA HOUSING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 12 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 32.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 5.9%.
• Current assets rose 20% and stood at Rs 21 billion, while fixed assets fell 28% and stood at Rs 996 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 18%.

ASHIANA HOUSING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,360	7,597	3.2
Current Liabilities	Rs m	9,230	12,211	32.3
Long-term Debt	Rs m	1,559	1,651	5.9
Total Liabilities	Rs m	18,512	21,817	17.9
Current assets	Rs m	17,133	20,589	20.2
Fixed Assets	Rs m	1,379	996	-27.8
Total Assets	Rs m	18,512	21,817	17.9

ASHIANA HOUSING Cash Flow Statement Analysis

• ASHIANA HOUSING's cash flow from operating activities (CFO) during FY23 stood at Rs 116 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 319 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -144 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 291 million from the Rs -266 million net cash flows seen during FY22.

ASHIANA HOUSING 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	-853	116	-
Cash Flow from Investing Activities	Rs m	-225	319	-
Cash Flow from Financing Activities	Rs m	812	-144	-
Net Cash Flow	Rs m	-266	291	-

Current Valuations for ASHIANA HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 199.7, stands at 70.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 41.3 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	21.7	39.8
TTM Earnings per share	Rs	-0.7	2.7
Diluted earnings per share	Rs	-0.7	2.8
Price to Cash Flow	x	1,029.9	41.3
TTM P/E ratio	x	-143.2	70.5
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	16,210	14,977
Dividends per share (Unadj.)	Rs	0.9	0.5

Ratio Analysis for ASHIANA HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 1.9x 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 2.2x during FY23, from 0.1x 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 3.7% during FY23, from -1.0% 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 improved and stood at 6.7% during FY23, from 0.3% 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 improved and stood at 2.5% during FY23, from 0.5% 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	1.9	1.7
Debtors’ Days	Days	409	296
Interest coverage	x	0.1	2.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	0.5	2.5
Return on equity	%	-1.0	3.7
Return on capital employed	%	0.3	6.7

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 up from Rs 158.1 to Rs 199.7, registering a gain of Rs 41.7 or around 26.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,532.3 (down 2.0%). Over the last one year it has moved up from 3,410.0 to 4,532.3, a gain of 1,122 points (up 32.9%).

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

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