ALANKIT 2022-23 Annual Report Analysis

Mon, 6 Nov

ALANKIT 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.

ALANKIT Income Statement Analysis

• Operating income during the year rose 143.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 12.0% in FY23 as against 8.7% in FY22.
• Depreciation charges decreased by 2.6% and finance costs decreased by 5.3% YoY, respectively.
• Other income grew by 18.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2.2% in FY22 to 11.3% in FY23.

ALANKIT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,281	3,117	143.2%
Other income	Rs m	85	101	18.3%
Total Revenues	Rs m	1,367	3,218	135.4%
Gross profit	Rs m	111	-376	NA
Depreciation	Rs m	87	85	-2.6%
Interest	Rs m	26	24	-5.3%
Profit before tax	Rs m	84	-384	NA
Tax	Rs m	55	-32	NA
Profit after tax	Rs m	29	-351	NA
Gross profit margin	%	8.7	-12.0
Effective tax rate	%	65.8	8.4
Net profit margin	%	2.2	-11.3

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ALANKIT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 911 million in FY22, thereby witnessing an increase of 11.9%.
• Long-term debt down at Rs 74 million as compared to Rs 74 million during FY22, a fall of 0.1%.
• Current assets rose 70% and stood at Rs 2 billion, while fixed assets fell 34% and stood at Rs 896 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 16%.

ALANKIT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,332	1,610	20.8
Current Liabilities	Rs m	911	1,019	11.9
Long-term Debt	Rs m	74	74	-0.1
Total Liabilities	Rs m	2,613	3,022	15.7
Current assets	Rs m	1,251	2,127	69.9
Fixed Assets	Rs m	1,361	896	-34.2
Total Assets	Rs m	2,613	3,022	15.7

ALANKIT Cash Flow Statement Analysis

• ALANKIT's cash flow from operating activities (CFO) during FY23 stood at Rs -494 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -190 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 628 million, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -56 million from the Rs 150 million net cash flows seen during FY22.

ALANKIT 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	16	-494	-
Cash Flow from Investing Activities	Rs m	-273	-190	-
Cash Flow from Financing Activities	Rs m	407	628	54.3%
Net Cash Flow	Rs m	150	-56	-

Current Valuations for ALANKIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11.0, stands at -7.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at -9.8 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	9.0	13.9
TTM Earnings per share	Rs	0.2	-1.6
Diluted earnings per share	Rs	0.1	-1.6
Price to Cash Flow	x	25.6	-9.8
TTM P/E ratio	x	103.4	-7.1
Price / Book Value ratio	x	2.1	1.6
Market Cap	Rs m	2,763	2,616
Dividends per share (Unadj.)	Rs	0.2	0.0

Ratio Analysis for ALANKIT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.4x 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 -14.9x during FY23, from 4.3x 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 -21.8% during FY23, from 2.2% 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 -21.3% during FY23, from 7.8% 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 -10.8% during FY23, from 2.1% 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	1.4	2.1
Debtors’ Days	Days	1,314	801
Interest coverage	x	4.3	-14.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.1	-10.8
Return on equity	%	2.2	-21.8
Return on capital employed	%	7.8	-21.3

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

ALANKIT Share Price Performance

Over the last one year, ALANKIT share price has moved down from Rs 11.2 to Rs 11.0, registering a loss of Rs 0.2 or around 2.1%.

Overall, the S&P BSE SENSEX is up 6.3% over the year.

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