INDO AMINES 2022-23 Annual Report Analysis

Wed, 22 Nov

INDO AMINES 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.

INDO AMINES Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY23 as against 6.6% in FY22.
• Depreciation charges increased by 22.9% and finance costs increased by 23.4% YoY, respectively.
• Other income declined by 59.1% YoY.
• Net profit for the year grew by 77.4% YoY.
• Net profit margins during the year grew from 2.9% in FY22 to 4.3% in FY23.

INDO AMINES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,860	9,450	20.2%
Other income	Rs m	104	42	-59.1%
Total Revenues	Rs m	7,964	9,492	19.2%
Gross profit	Rs m	522	871	66.8%
Depreciation	Rs m	141	173	22.9%
Interest	Rs m	140	172	23.4%
Profit before tax	Rs m	345	568	64.5%
Tax	Rs m	115	159	38.8%
Profit after tax	Rs m	230	409	77.4%
Gross profit margin	%	6.6	9.2
Effective tax rate	%	33.2	28.0
Net profit margin	%	2.9	4.3

5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

INDO AMINES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -1.7%.
• Long-term debt stood at Rs 581 million as compared to Rs 506 million during FY22, a growth of 14.8%.
• Current assets rose 9% and stood at Rs 4 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 6 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 8%.

INDO AMINES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,875	2,254	20.2
Current Liabilities	Rs m	3,144	3,092	-1.7
Long-term Debt	Rs m	506	581	14.8
Total Liabilities	Rs m	5,544	5,973	7.7
Current assets	Rs m	3,403	3,726	9.5
Fixed Assets	Rs m	2,141	2,247	4.9
Total Assets	Rs m	5,544	5,973	7.7

INDO AMINES Cash Flow Statement Analysis

• INDO AMINES's cash flow from operating activities (CFO) during FY23 stood at Rs 204 million, an improvement of 31.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -298 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 40 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -54 million from the Rs 85 million net cash flows seen during FY22.

INDO AMINES 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	155	204	31.7%
Cash Flow from Investing Activities	Rs m	-388	-298	-
Cash Flow from Financing Activities	Rs m	319	40	-87.4%
Net Cash Flow	Rs m	85	-54	-

Current Valuations for INDO AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 114.0, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	111.2	133.7
TTM Earnings per share	Rs	3.3	5.8
Diluted earnings per share	Rs	3.3	5.8
Price to Cash Flow	x	17.6	14.9
TTM P/E ratio	x	28.4	15.6
Price / Book Value ratio	x	8.6	3.8
Market Cap	Rs m	16,124	8,664
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for INDO AMINES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x 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 4.3x during FY23, from 3.5x 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 18.1% during FY23, from 12.3% 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 26.1% during FY23, from 20.4% 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 improved and stood at 9.7% during FY23, from 6.7% 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	1.2
Debtors’ Days	Days	777	724
Interest coverage	x	3.5	4.3
Debt to equity ratio	x	0.3	0.3
Return on assets	%	6.7	9.7
Return on equity	%	12.3	18.1
Return on capital employed	%	20.4	26.1

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

INDO AMINES Share Price Performance

Over the last one year, INDO AMINES share price has moved up from Rs 108.9 to Rs 114.0, registering a gain of Rs 5.1 or around 4.7%.

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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