ASHIRWAD STL 2022-23 Annual Report Analysis

Tue, 16 May

ASHIRWAD STL 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.

ASHIRWAD STL Income Statement Analysis

• Operating income during the year fell 35.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 268.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 779.6% in FY23 as against 137.1% in FY22.
• Depreciation charges decreased by 78.1% and finance costs decreased by 87.3% YoY, respectively.
• Other income grew by 168.5% YoY.
• Net profit for the year grew by 263.1% YoY.
• Net profit margins during the year grew from 141.9% in FY22 to 795.7% in FY23.

ASHIRWAD STL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	33	21	-35.3%
Other income	Rs m	9	23	168.5%
Total Revenues	Rs m	41	44	7.7%
Gross profit	Rs m	45	164	268.2%
Depreciation	Rs m	4	1	-78.1%
Interest	Rs m	2	0	-87.3%
Profit before tax	Rs m	48	187	290.7%
Tax	Rs m	2	19	1,098.1%
Profit after tax	Rs m	46	168	263.1%
Gross profit margin	%	137.1	779.6
Effective tax rate	%	3.3	10.1
Net profit margin	%	141.9	795.7

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ASHIRWAD STL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 19 million as compared to Rs 7 million in FY22, thereby witnessing an increase of 159.0%.
• Current assets fell 12% and stood at Rs 214 million, while fixed assets rose 57% and stood at Rs 586 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 800 million as against Rs 618 million during FY22, thereby witnessing a growth of 30%.

ASHIRWAD STL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	614	784	27.7
Current Liabilities	Rs m	7	19	159.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	618	800	29.5
Current assets	Rs m	244	214	-12.2
Fixed Assets	Rs m	374	586	56.7
Total Assets	Rs m	618	800	29.5

ASHIRWAD STL Cash Flow Statement Analysis

• ASHIRWAD STL's cash flow from operating activities (CFO) during FY23 stood at Rs 169 million, an improvement of 84.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -97 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 72 million from the Rs 203 million net cash flows seen during FY22.

ASHIRWAD STL 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	92	169	84.4%
Cash Flow from Investing Activities	Rs m	111	-97	-
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	203	72	-64.5%

Current Valuations for ASHIRWAD STL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.4, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.1, stands at 1.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 14.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.9 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	2.6	1.7
TTM Earnings per share	Rs	3.7	13.4
Diluted earnings per share	Rs	3.7	13.4
Price to Cash Flow	x	3.9	1.9
TTM P/E ratio	x	4.2	1.8
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	193	312
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASHIRWAD STL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 11.3x during FY23, from 33.3x 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 718.7x during FY23, from 24.4x 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 21.4% during FY23, from 7.5% 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 23.8% during FY23, from 8.1% 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 21.0% during FY23, from 7.8% 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	33.3	11.3
Debtors’ Days	Days	0	0
Interest coverage	x	24.4	718.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	21.0
Return on equity	%	7.5	21.4
Return on capital employed	%	8.1	23.8

To see how ASHIRWAD STL has performed over the last 5 years, please visit here.

ASHIRWAD STL Share Price Performance

Over the last one year, ASHIRWAD STL share price has moved up from Rs 15.0 to Rs 24.1, registering a gain of Rs 9.1 or around 60.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,856.2 (up 0.3%). Over the last one year it has moved up from 18,061.1 to 19,856.2, a gain of 1,795 points (up 9.9%).

Overall, the S&P BSE SENSEX is up 17.7% over the year.

(To know more, check out historical annual results for ASHIRWAD STL and quarterly results for ASHIRWAD STL)