ATUL 2022-23 Annual Report Analysis

Sun, 9 Jul

ATUL 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 Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in FY23 as against 18.1% in FY22.
• Depreciation charges increased by 12.0% and finance costs decreased by 13.8% YoY, respectively.
• Other income grew by 47.5% YoY.
• Net profit for the year declined by 16.2% YoY.
• Net profit margins during the year declined from 11.9% in FY22 to 9.3% in FY23.

ATUL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	50,809	54,275	6.8%
Other income	Rs m	779	1,149	47.5%
Total Revenues	Rs m	51,588	55,424	7.4%
Gross profit	Rs m	9,177	7,787	-15.2%
Depreciation	Rs m	1,767	1,978	12.0%
Interest	Rs m	92	79	-13.8%
Profit before tax	Rs m	8,097	6,878	-15.1%
Tax	Rs m	2,050	1,812	-11.6%
Profit after tax	Rs m	6,047	5,066	-16.2%
Gross profit margin	%	18.1	14.3
Effective tax rate	%	25.3	26.3
Net profit margin	%	11.9	9.3

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ATUL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 10 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -14.8%.
• Long-term debt down at Rs 287 million as compared to Rs 611 million during FY22, a fall of 53.0%.
• Current assets fell 21% and stood at Rs 23 billion, while fixed assets rose 22% and stood at Rs 37 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 59 billion as against Rs 59 billion during FY22, thereby witnessing a growth of 1%.

ATUL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	44,290	46,714	5.5
Current Liabilities	Rs m	12,069	10,282	-14.8
Long-term Debt	Rs m	611	287	-53.0
Total Liabilities	Rs m	59,032	59,395	0.6
Current assets	Rs m	28,973	22,789	-21.3
Fixed Assets	Rs m	30,059	36,606	21.8
Total Assets	Rs m	59,032	59,395	0.6

ATUL Cash Flow Statement Analysis

• ATUL's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 205.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 180.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -196 million from the Rs 108 million net cash flows seen during FY22.

ATUL 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	2,315	7,067	205.3%
Cash Flow from Investing Activities	Rs m	-1,677	-4,694	-
Cash Flow from Financing Activities	Rs m	-574	-2,575	-
Net Cash Flow	Rs m	108	-196	-

Current Valuations for ATUL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 171.7, an decline from the EPS of Rs 204.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,781.8, stands at 39.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 35.7 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	1,717.1	1,839.2
TTM Earnings per share	Rs	204.4	171.7
Diluted earnings per share	Rs	204.9	171.7
Price to Cash Flow	x	38.9	35.7
TTM P/E ratio	x	50.9	39.8
Price / Book Value ratio	x	6.0	5.4
Market Cap	Rs m	266,837	251,534
Dividends per share (Unadj.)	Rs	25.0	32.5

Ratio Analysis for ATUL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.4x 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 88.1x during FY23, from 89.3x 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 10.8% during FY23, from 13.7% 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 14.8% during FY23, from 18.2% 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 declined and down at 8.7% during FY23, from 10.4% 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	2.4	2.2
Debtors’ Days	Days	7	6
Interest coverage	x	89.3	88.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	8.7
Return on equity	%	13.7	10.8
Return on capital employed	%	18.2	14.8

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

ATUL Share Price Performance

Over the last one year, ATUL share price has moved down from Rs 8,183.3 to Rs 6,781.8, registering a loss of Rs 1,401.5 or around 17.1%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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