ALGOQUANT FINTECH 2021-22 Annual Report Analysis

Tue, 2 Aug

ALGOQUANT FINTECH has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ALGOQUANT FINTECH Income Statement Analysis

• Operating income during the year rose 405.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY22 as against 69.1% in FY21.
• Depreciation charges increased by 0.0% and finance costs increased by 491.6% YoY, respectively.
• Other income declined by 69.0% YoY.
• Net profit for the year declined by 13.5% YoY.
• Net profit margins during the year grew from 0.0% in FY21 to 19.8% in FY22.

ALGOQUANT FINTECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	32	164	405.9%
Other income	Rs m	23	7	-69.0%
Total Revenues	Rs m	55	171	208.8%
Gross profit	Rs m	22	32	42.9%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	1	7	491.6%
Profit before tax	Rs m	44	32	-28.4%
Tax	Rs m	7	-1	-111.0%
Profit after tax	Rs m	37	32	-13.5%
Gross profit margin	%	69.1	19.5
Effective tax rate	%	15.3	-2.3
Net profit margin	%	0.0	19.8

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ALGOQUANT FINTECH Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 84 million as compared to Rs 53 million in FY21, thereby witnessing an increase of 58.2%.
• Current assets fell 58% and stood at Rs 106 million, while fixed assets rose 16,656% and stood at Rs 320 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 427 million as against Rs 254 million during FY21, thereby witnessing a growth of 68%.

ALGOQUANT FINTECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	201	335	66.8
Current Liabilities	Rs m	53	84	58.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	254	427	67.7
Current assets	Rs m	252	106	-57.8
Fixed Assets	Rs m	2	320	16,656.0
Total Assets	Rs m	254	427	67.7

ALGOQUANT FINTECH Cash Flow Statement Analysis

• ALGOQUANT FINTECH's cash flow from operating activities (CFO) during FY22 stood at Rs 202 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -181 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -6 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 15 million from the Rs -9 million net cash flows seen during FY21.

ALGOQUANT FINTECH Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-179	202	-
Cash Flow from Investing Activities	Rs m	171	-181	-
Cash Flow from Financing Activities	Rs m	-1	-6	-
Net Cash Flow	Rs m	-9	15	-

Current Valuations for ALGOQUANT FINTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 23.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 306.2, stands at 76.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 15.0 times.
• The company's price to cash flow (P/CF) ratio stood at 286.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	20.1	20.4
TTM Earnings per share	Rs	23.3	4.0
Diluted earnings per share	Rs	4.7	4.0
Price to Cash Flow	x	31.1	286.2
TTM P/E ratio	x	31.1	76.0
Price / Book Value ratio	x	1.0	28.0
Market Cap	Rs m	211	9,390
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALGOQUANT FINTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 4.7x during FY21. 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 5.5x during FY22, from 38.1x during FY21. 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 9.7% during FY22, from 18.6% during FY22. 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 11.5% during FY22, from 22.6% during FY21. 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 9.2% during FY22, from 15.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	4.7	1.3
Debtors’ Days	Days	936	0
Interest coverage	x	38.1	5.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.2	9.2
Return on equity	%	18.6	9.7
Return on capital employed	%	22.6	11.5

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

ALGOQUANT FINTECH Share Price Performance

Over the last one year, ALGOQUANT FINTECH share price has moved down from Rs 460.5 to Rs 306.2, registering a loss of Rs 154.3 or around 33.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 30,053.1 (down 0.4%). Over the last one year it has moved up from 23,787.5 to 30,053.1, a gain of 6,266 points (up 26.3%).

Overall, the S&P BSE SENSEX is up 10.4% over the year.

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