ASTRAL 2022-23 Annual Report Analysis

Mon, 17 Jul

ASTRAL 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.

ASTRAL Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY23 as against 17.1% in FY22.
• Depreciation charges increased by 40.3% and finance costs increased by 210.1% YoY, respectively.
• Other income declined by 23.5% YoY.
• Net profit for the year declined by 6.3% YoY.
• Net profit margins during the year declined from 11.2% in FY22 to 8.9% in FY23.

ASTRAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	43,940	51,585	17.4%
Other income	Rs m	349	267	-23.5%
Total Revenues	Rs m	44,289	51,852	17.1%
Gross profit	Rs m	7,534	8,066	7.1%
Depreciation	Rs m	1,269	1,781	40.3%
Interest	Rs m	129	400	210.1%
Profit before tax	Rs m	6,485	6,152	-5.1%
Tax	Rs m	1,581	1,557	-1.5%
Profit after tax	Rs m	4,904	4,595	-6.3%
Gross profit margin	%	17.1	15.6
Effective tax rate	%	24.4	25.3
Net profit margin	%	11.2	8.9

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

ASTRAL 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 27.0%.
• Long-term debt down at Rs 316 million as compared to Rs 328 million during FY22, a fall of 3.7%.
• Current assets rose 18% and stood at Rs 21 billion, while fixed assets rose 29% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 44 billion as against Rs 34 billion during FY22, thereby witnessing a growth of 29%.

ASTRAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,353	27,092	16.0
Current Liabilities	Rs m	9,409	11,954	27.0
Long-term Debt	Rs m	328	316	-3.7
Total Liabilities	Rs m	33,869	43,621	28.8
Current assets	Rs m	17,451	20,539	17.7
Fixed Assets	Rs m	16,418	21,129	28.7
Total Assets	Rs m	33,869	43,621	28.8

ASTRAL Cash Flow Statement Analysis

• ASTRAL's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 2.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 6 billion net cash flows seen during FY22.

ASTRAL 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	5,431	5,569	2.5%
Cash Flow from Investing Activities	Rs m	715	-4,797	-
Cash Flow from Financing Activities	Rs m	-440	-1,906	-
Net Cash Flow	Rs m	5,706	-1,118	-

Current Valuations for ASTRAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an decline from the EPS of Rs 24.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,838.0, stands at 106.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.2 times, while the price to sales ratio stands at 9.6 times.
• The company's price to cash flow (P/CF) ratio stood at 67.0 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	218.7	192.0
TTM Earnings per share	Rs	24.4	17.1
Diluted earnings per share	Rs	18.3	17.1
Price to Cash Flow	x	66.0	67.0
TTM P/E ratio	x	82.8	106.4
Price / Book Value ratio	x	16.9	15.8
Market Cap	Rs m	395,481	426,902
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for ASTRAL

• 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 deteriorated and stood at 16.4x during FY23, from 51.3x 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 17.0% during FY23, from 21.0% 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 declined and down at 23.9% during FY23, from 27.9% 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 11.5% during FY23, from 14.9% 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	22	25
Interest coverage	x	51.3	16.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.9	11.5
Return on equity	%	21.0	17.0
Return on capital employed	%	27.9	23.9

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

ASTRAL Share Price Performance

Over the last one year, ASTRAL share price has moved up from Rs 1,339.6 to Rs 1,838.0, registering a gain of Rs 498.3 or around 37.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 41,426.7 (up 0.2%). Over the last one year it has moved up from 27,634.8 to 41,426.7, a gain of 13,792 points (up 49.9%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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