AVADH SUGAR & ENERGY 2022-23 Annual Report Analysis

Mon, 10 Jul

AVADH SUGAR & ENERGY 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.

AVADH SUGAR & ENERGY Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY23 as against 11.0% in FY22.
• Depreciation charges decreased by 0.3% and finance costs decreased by 21.6% YoY, respectively.
• Other income grew by 97.3% YoY.
• Net profit for the year declined by 19.4% YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 3.6% in FY23.

AVADH SUGAR & ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,437	27,980	2.0%
Other income	Rs m	47	93	97.3%
Total Revenues	Rs m	27,484	28,073	2.1%
Gross profit	Rs m	3,022	2,548	-15.7%
Depreciation	Rs m	513	511	-0.3%
Interest	Rs m	884	693	-21.6%
Profit before tax	Rs m	1,672	1,436	-14.1%
Tax	Rs m	428	434	1.3%
Profit after tax	Rs m	1,244	1,002	-19.4%
Gross profit margin	%	11.0	9.1
Effective tax rate	%	25.6	30.2
Net profit margin	%	4.5	3.6

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AVADH SUGAR & ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -1.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY22, a fall of 24.0%.
• Current assets fell 8% and stood at Rs 12 billion, while fixed assets rose 9% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 25 billion during FY22, thereby witnessing a growth of 1%.

AVADH SUGAR & ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,104	8,912	10.0
Current Liabilities	Rs m	11,892	11,773	-1.0
Long-term Debt	Rs m	4,030	3,063	-24.0
Total Liabilities	Rs m	24,771	24,899	0.5
Current assets	Rs m	12,742	11,770	-7.6
Fixed Assets	Rs m	12,029	13,129	9.1
Total Assets	Rs m	24,771	24,899	0.5

AVADH SUGAR & ENERGY Cash Flow Statement Analysis

• AVADH SUGAR & ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 15.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 131.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 10% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs -41 million net cash flows seen during FY22.

AVADH SUGAR & ENERGY 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	3,137	3,636	15.9%
Cash Flow from Investing Activities	Rs m	-536	-1,238	-
Cash Flow from Financing Activities	Rs m	-2,643	-2,389	-
Net Cash Flow	Rs m	-41	8	-

Current Valuations for AVADH SUGAR & ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.1, an decline from the EPS of Rs 62.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 533.6, stands at 10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	1,370.5	1,397.6
TTM Earnings per share	Rs	62.1	50.1
Diluted earnings per share	Rs	62.1	50.1
Price to Cash Flow	x	8.3	8.4
TTM P/E ratio	x	11.7	10.7
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	9,999	12,741
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for AVADH SUGAR & ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 3.1x during FY23, from 2.9x 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 11.2% during FY23, from 15.4% 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 17.8% during FY23, from 21.1% 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 6.8% during FY23, from 8.6% 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	1.0
Debtors’ Days	Days	114	95
Interest coverage	x	2.9	3.1
Debt to equity ratio	x	0.5	0.3
Return on assets	%	8.6	6.8
Return on equity	%	15.4	11.2
Return on capital employed	%	21.1	17.8

To see how AVADH SUGAR & ENERGY has performed over the last 5 years, please visit here.

AVADH SUGAR & ENERGY Share Price Performance

Over the last one year, AVADH SUGAR & ENERGY share price has moved down from Rs 564.0 to Rs 533.6, registering a loss of Rs 30.4 or around 5.4%.

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

(To know more, check out historical annual results for AVADH SUGAR & ENERGY and quarterly results for AVADH SUGAR & ENERGY)