AETHER INDUSTRIES 2022-23 Annual Report Analysis

Tue, 30 May

AETHER INDUSTRIES 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.

AETHER INDUSTRIES Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.6% in FY23 as against 28.5% in FY22.
• Depreciation charges increased by 50.1% and finance costs decreased by 61.2% YoY, respectively.
• Other income grew by 137.6% YoY.
• Net profit for the year grew by 19.7% YoY.
• Net profit margins during the year grew from 18.5% in FY22 to 20.0% in FY23.

AETHER INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,900	6,511	10.3%
Other income	Rs m	70	166	137.6%
Total Revenues	Rs m	5,970	6,676	11.8%
Gross profit	Rs m	1,681	1,863	10.8%
Depreciation	Rs m	155	232	50.1%
Interest	Rs m	131	51	-61.2%
Profit before tax	Rs m	1,465	1,745	19.1%
Tax	Rs m	375	441	17.4%
Profit after tax	Rs m	1,089	1,304	19.7%
Gross profit margin	%	28.5	28.6
Effective tax rate	%	25.6	25.3
Net profit margin	%	18.5	20.0

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AETHER INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 940 million as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -61.2%.
• Current assets rose 65% and stood at Rs 7 billion, while fixed assets rose 96% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 79%.

AETHER INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,863	12,431	221.8
Current Liabilities	Rs m	2,422	940	-61.2
Long-term Debt	Rs m	1,218	0	-100.0
Total Liabilities	Rs m	7,698	13,799	79.3
Current assets	Rs m	4,098	6,752	64.8
Fixed Assets	Rs m	3,600	7,047	95.7
Total Assets	Rs m	7,698	13,799	79.3

AETHER INDUSTRIES Cash Flow Statement Analysis

• AETHER INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -66 million, an improvement of 20.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 130.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 160% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 843 million from the Rs 125 million net cash flows seen during FY22.

AETHER INDUSTRIES 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	-54	-66	-
Cash Flow from Investing Activities	Rs m	-1,509	-3,484	-
Cash Flow from Financing Activities	Rs m	1,688	4,392	160.1%
Net Cash Flow	Rs m	125	843	576.7%

Current Valuations for AETHER INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 907.5, stands at 86.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 17.4 times.
• The company's price to cash flow (P/CF) ratio stood at 70.9 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	52.4	52.3
TTM Earnings per share	Rs	9.7	10.5
Diluted earnings per share	Rs	8.7	10.5
Price to Cash Flow	x	0.0	70.9
TTM P/E ratio	x	0.0	86.6
Price / Book Value ratio	x	0.0	8.8
Market Cap	Rs m	0	108,938
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AETHER INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.2x during FY23, from 1.7x 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 35.3x during FY23, from 12.2x 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 10.5% during FY23, from 28.2% 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 declined and down at 14.4% during FY23, from 31.4% 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 9.8% during FY23, from 15.9% 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	1.7	7.2
Debtors’ Days	Days	101	145
Interest coverage	x	12.2	35.3
Debt to equity ratio	x	0.3	0.0
Return on assets	%	15.9	9.8
Return on equity	%	28.2	10.5
Return on capital employed	%	31.4	14.4

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

AETHER INDUSTRIES Share Price Performance

Over the last one year, AETHER INDUSTRIES share price has moved up from Rs 0.0 to Rs 907.5, registering a gain of Rs 907.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 16.0% over the year.

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