AXTEL INDUSTRIES 2022-23 Annual Report Analysis

Fri, 16 Jun

AXTEL 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.

AXTEL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY23 as against 13.2% in FY22.
• Depreciation charges decreased by 15.2% and finance costs increased by 128.5% YoY, respectively.
• Other income grew by 17.1% YoY.
• Net profit for the year grew by 25.1% YoY.
• Net profit margins during the year declined from 9.6% in FY22 to 9.6% in FY23.

AXTEL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,440	1,801	25.1%
Other income	Rs m	31	37	17.1%
Total Revenues	Rs m	1,471	1,838	24.9%
Gross profit	Rs m	190	228	19.9%
Depreciation	Rs m	28	24	-15.2%
Interest	Rs m	5	11	128.5%
Profit before tax	Rs m	188	230	22.0%
Tax	Rs m	50	57	13.3%
Profit after tax	Rs m	138	173	25.1%
Gross profit margin	%	13.2	12.6
Effective tax rate	%	26.5	24.6
Net profit margin	%	9.6	9.6

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AXTEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 857 million as compared to Rs 506 million in FY22, thereby witnessing an increase of 69.5%.
• Current assets rose 40% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 218 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 36%.

AXTEL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	808	962	19.0
Current Liabilities	Rs m	506	857	69.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,353	1,842	36.1
Current assets	Rs m	1,163	1,624	39.7
Fixed Assets	Rs m	190	218	14.4
Total Assets	Rs m	1,353	1,842	36.1

AXTEL INDUSTRIES Cash Flow Statement Analysis

• AXTEL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 301 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -200 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -48 million, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 54 million from the Rs -21 million net cash flows seen during FY22.

AXTEL 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	-111	301	-
Cash Flow from Investing Activities	Rs m	145	-200	-
Cash Flow from Financing Activities	Rs m	-55	-48	-
Net Cash Flow	Rs m	-21	54	-

Current Valuations for AXTEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 297.5, stands at 27.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.8 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	89.2	111.5
TTM Earnings per share	Rs	8.6	10.7
Diluted earnings per share	Rs	8.6	10.7
Price to Cash Flow	x	25.9	20.8
TTM P/E ratio	x	31.3	27.8
Price / Book Value ratio	x	6.6	4.3
Market Cap	Rs m	5,371	4,099
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for AXTEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.3x 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 deteriorated and stood at 22.0x during FY23, from 40.4x 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 18.0% during FY23, from 17.1% 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 25.0% during FY23, from 23.9% 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 10.0% during FY23, from 10.6% 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	2.3	1.9
Debtors’ Days	Days	1,163	1,247
Interest coverage	x	40.4	22.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.6	10.0
Return on equity	%	17.1	18.0
Return on capital employed	%	23.9	25.0

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

AXTEL INDUSTRIES Share Price Performance

Over the last one year, AXTEL INDUSTRIES share price has moved up from Rs 236.2 to Rs 297.5, registering a gain of Rs 61.3 or around 26.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 39,527.5 (up 0.1%). Over the last one year it has moved up from 25,525.1 to 39,527.5, a gain of 14,002 points (up 54.9%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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