ATUL AUTO 2022-23 Annual Report Analysis

Tue, 26 Sep

ATUL AUTO 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.

ATUL AUTO Income Statement Analysis

• Operating income during the year rose 62.7% 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 7.1% in FY23 as against 5.2% in FY22.
• Depreciation charges increased by 61.1% and finance costs increased by 98.8% YoY, respectively.
• Other income grew by 11.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 8.1% in FY22 to 0.6% in FY23.

ATUL AUTO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,154	5,131	62.7%
Other income	Rs m	14	15	11.1%
Total Revenues	Rs m	3,168	5,146	62.5%
Gross profit	Rs m	-163	363	NA
Depreciation	Rs m	96	155	61.1%
Interest	Rs m	83	165	98.8%
Profit before tax	Rs m	-329	58	NA
Tax	Rs m	-74	27	NA
Profit after tax	Rs m	-255	31	NA
Gross profit margin	%	-5.2	7.1
Effective tax rate	%	22.6	45.8
Net profit margin	%	-8.1	0.6

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ATUL AUTO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 25.4%.
• Long-term debt down at Rs 706 million as compared to Rs 1 billion during FY22, a fall of 40.7%.
• Current assets rose 32% and stood at Rs 2 billion, while fixed assets rose 4% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 12%.

ATUL AUTO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,766	3,477	25.7
Current Liabilities	Rs m	1,400	1,756	25.4
Long-term Debt	Rs m	1,190	706	-40.7
Total Liabilities	Rs m	5,318	5,966	12.2
Current assets	Rs m	1,599	2,116	32.3
Fixed Assets	Rs m	3,719	3,850	3.5
Total Assets	Rs m	5,318	5,966	12.2

ATUL AUTO Cash Flow Statement Analysis

• ATUL AUTO's cash flow from operating activities (CFO) during FY23 stood at Rs -177 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -235 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 389 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -23 million from the Rs -11 million net cash flows seen during FY22.

ATUL AUTO 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	-1,692	-177	-
Cash Flow from Investing Activities	Rs m	42	-235	-
Cash Flow from Financing Activities	Rs m	1,639	389	-76.3%
Net Cash Flow	Rs m	-11	-23	-

Current Valuations for ATUL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs -11.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 580.0, stands at -612.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 34.8 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	143.8	214.9
TTM Earnings per share	Rs	-11.6	1.3
Diluted earnings per share	Rs	-9.2	1.1
Price to Cash Flow	x	-28.3	34.8
TTM P/E ratio	x	-17.6	-612.0
Price / Book Value ratio	x	1.7	1.9
Market Cap	Rs m	4,677	6,481
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ATUL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x 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 1.4x during FY23, from -3.0x 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 0.9% during FY23, from -9.2% 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 5.3% during FY23, from -6.2% 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 3.3% during FY23, from -3.2% 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	1.1	1.2
Debtors’ Days	Days	231	190
Interest coverage	x	-3.0	1.4
Debt to equity ratio	x	0.4	0.2
Return on assets	%	-3.2	3.3
Return on equity	%	-9.2	0.9
Return on capital employed	%	-6.2	5.3

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

ATUL AUTO Share Price Performance

Over the last one year, ATUL AUTO share price has moved up from Rs 186.4 to Rs 580.0, registering a gain of Rs 393.6 or around 211.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 36,888.9 (up 0.3%). Over the last one year it has moved up from 28,867.7 to 36,888.9, a gain of 8,021 points (up 27.8%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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