ATLANTA 2022-23 Annual Report Analysis

Wed, 25 Oct

ATLANTA 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.

ATLANTA Income Statement Analysis

• Operating income during the year fell 78.0% 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 38.1% in FY23 as against 174.0% in FY22.
• Depreciation charges increased by 22.9% and finance costs decreased by 90.4% YoY, respectively.
• Other income declined by 92.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 171.6% in FY22 to 62.7% in FY23.

ATLANTA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,345	517	-78.0%
Other income	Rs m	1,062	81	-92.3%
Total Revenues	Rs m	3,407	598	-82.5%
Gross profit	Rs m	-4,080	197	NA
Depreciation	Rs m	251	309	22.9%
Interest	Rs m	637	61	-90.4%
Profit before tax	Rs m	-3,907	-92	NA
Tax	Rs m	118	232	96.4%
Profit after tax	Rs m	-4,025	-324	NA
Gross profit margin	%	-174.0	38.1
Effective tax rate	%	-3.0	-251.9
Net profit margin	%	-171.6	-62.7

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ATLANTA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 2.0%.
• Long-term debt down at Rs 190 million as compared to Rs 420 million during FY22, a fall of 54.7%.
• Current assets fell 2% and stood at Rs 2 billion, while fixed assets fell 15% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 9%.

ATLANTA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-3,209	-3,846	NA
Current Liabilities	Rs m	7,974	8,135	2.0
Long-term Debt	Rs m	420	190	-54.7
Total Liabilities	Rs m	5,432	4,924	-9.4
Current assets	Rs m	2,300	2,257	-1.9
Fixed Assets	Rs m	3,132	2,667	-14.8
Total Assets	Rs m	5,432	4,924	-9.4

ATLANTA Cash Flow Statement Analysis

• ATLANTA's cash flow from operating activities (CFO) during FY23 stood at Rs 457 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 455 million from the Rs 79 million net cash flows seen during FY22.

ATLANTA 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	1,092	457	-58.1%
Cash Flow from Investing Activities	Rs m	2,433	7	-99.7%
Cash Flow from Financing Activities	Rs m	-3,446	-10	-
Net Cash Flow	Rs m	79	455	477.1%

Current Valuations for ATLANTA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.0, an improvement from the EPS of Rs -49.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14.8, stands at -4.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.3 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at -118.7 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	28.8	6.3
TTM Earnings per share	Rs	-49.4	-4.0
Diluted earnings per share	Rs	-49.4	-4.0
Price to Cash Flow	x	-0.4	-118.7
TTM P/E ratio	x	-0.6	-4.2
Price / Book Value ratio	x	-0.5	-0.5
Market Cap	Rs m	1,469	1,795
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ATLANTA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY23, from 0.3x 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 -0.5x during FY23, from -5.1x 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 declined and down at 8.4% during FY23, from 125.4% 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 0.8% during FY23, from 117.2% 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 -5.3% during FY23, from -62.4% 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	0.3	0.3
Debtors’ Days	Days	1,726	3,592
Interest coverage	x	-5.1	-0.5
Debt to equity ratio	x	-0.1	0.0
Return on assets	%	-62.4	-5.3
Return on equity	%	125.4	8.4
Return on capital employed	%	117.2	0.8

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

ATLANTA Share Price Performance

Over the last one year, ATLANTA share price has moved down from Rs 23.8 to Rs 14.8, registering a loss of Rs 9.0 or around 37.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,604.3 (down 0.8%). Over the last one year it has moved up from 3,387.7 to 4,604.3, a gain of 1,217 points (up 35.9%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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