EMAMI REALTY 2022-23 Annual Report Analysis

Fri, 31 Mar

EMAMI REALTY 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.

EMAMI REALTY Income Statement Analysis

• Operating income during the year fell 51.1% 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 31.4% in FY23 as against 21.0% in FY22.
• Depreciation charges increased by 12.0% and finance costs decreased by 14.0% YoY, respectively.
• Other income declined by 22.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 7.6% in FY22 to 42.8% in FY23.

EMAMI REALTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,965	962	-51.1%
Other income	Rs m	452	351	-22.2%
Total Revenues	Rs m	2,417	1,313	-45.7%
Gross profit	Rs m	412	-302	NA
Depreciation	Rs m	11	12	12.0%
Interest	Rs m	679	585	-14.0%
Profit before tax	Rs m	173	-547	NA
Tax	Rs m	23	-136	NA
Profit after tax	Rs m	150	-411	NA
Gross profit margin	%	21.0	-31.4
Effective tax rate	%	13.5	24.8
Net profit margin	%	7.6	-42.8

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EMAMI REALTY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 10 billion as compared to Rs 15 billion in FY22, thereby witnessing an decrease of -33.8%.
• Long-term debt stood at Rs 9 billion as compared to Rs 2 billion during FY22, a growth of 297.2%.
• Current assets rose 5% and stood at Rs 18 billion, while fixed assets rose 5% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 5%.

EMAMI REALTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,275	872	-31.6
Current Liabilities	Rs m	14,819	9,809	-33.8
Long-term Debt	Rs m	2,182	8,668	297.2
Total Liabilities	Rs m	18,471	19,402	5.0
Current assets	Rs m	16,976	17,839	5.1
Fixed Assets	Rs m	1,495	1,563	4.6
Total Assets	Rs m	18,471	19,402	5.0

EMAMI REALTY Cash Flow Statement Analysis

• EMAMI REALTY's cash flow from operating activities (CFO) during FY23 stood at Rs 729 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -666 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 59 million from the Rs -31 million net cash flows seen during FY22.

EMAMI REALTY 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	1,178	729	-38.1%
Cash Flow from Investing Activities	Rs m	926	-666	-
Cash Flow from Financing Activities	Rs m	-2,135	-5	-
Net Cash Flow	Rs m	-31	59	-

Current Valuations for EMAMI REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -10.9, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.1, stands at -5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at -6.8 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	51.9	25.4
TTM Earnings per share	Rs	4.0	-10.9
Diluted earnings per share	Rs	4.0	-10.9
Price to Cash Flow	x	14.1	-6.8
TTM P/E ratio	x	15.1	-5.7
Price / Book Value ratio	x	2.1	3.1
Market Cap	Rs m	2,739	2,725
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EMAMI REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 deteriorated and stood at 0.1x during FY23, from 1.3x 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 -47.2% during FY23, from 11.8% 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 0.4% during FY23, from 24.7% 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 0.9% during FY23, from 4.5% 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	1.8
Debtors’ Days	Days	256	479
Interest coverage	x	1.3	0.1
Debt to equity ratio	x	1.7	9.9
Return on assets	%	4.5	0.9
Return on equity	%	11.8	-47.2
Return on capital employed	%	24.7	0.4

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

EMAMI REALTY Share Price Performance

Over the last one year, EMAMI REALTY share price has moved up from Rs 59.9 to Rs 62.1, registering a gain of Rs 2.2 or around 3.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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