OMAXE 2022-23 Annual Report Analysis

Tue, 20 Feb

OMAXE 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.

OMAXE Income Statement Analysis

• Operating income during the year rose 25.2% 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 39.2% in FY23 as against 7.6% in FY22.
• Depreciation charges increased by 40.3% and finance costs decreased by 6.8% YoY, respectively.
• Other income grew by 22.5% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 26.2% in FY22 to 45.4% in FY23.

OMAXE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,178	7,733	25.2%
Other income	Rs m	201	247	22.5%
Total Revenues	Rs m	6,379	7,980	25.1%
Gross profit	Rs m	-469	-3,033	NA
Depreciation	Rs m	466	654	40.3%
Interest	Rs m	1,211	1,128	-6.8%
Profit before tax	Rs m	-1,944	-4,568	NA
Tax	Rs m	-327	-1,057	NA
Profit after tax	Rs m	-1,617	-3,511	NA
Gross profit margin	%	-7.6	-39.2
Effective tax rate	%	16.8	23.1
Net profit margin	%	-26.2	-45.4

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OMAXE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 115 billion as compared to Rs 97 billion in FY22, thereby witnessing an increase of 18.1%.
• Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY22, a growth of 47.5%.
• Current assets rose 15% and stood at Rs 123 billion, while fixed assets fell 3% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 131 billion as against Rs 116 billion during FY22, thereby witnessing a growth of 13%.

OMAXE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,450	8,982	-27.9
Current Liabilities	Rs m	97,160	114,730	18.1
Long-term Debt	Rs m	5,167	7,623	47.5
Total Liabilities	Rs m	116,121	131,463	13.2
Current assets	Rs m	107,348	122,975	14.6
Fixed Assets	Rs m	8,773	8,488	-3.2
Total Assets	Rs m	116,121	131,463	13.2

OMAXE Cash Flow Statement Analysis

• OMAXE's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 540.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion, an improvement of 65% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 652 million from the Rs 209 million net cash flows seen during FY22.

OMAXE 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	7,831	4,690	-40.1%
Cash Flow from Investing Activities	Rs m	-222	-1,419	-
Cash Flow from Financing Activities	Rs m	-7,401	-2,619	-
Net Cash Flow	Rs m	209	652	212.2%

Current Valuations for OMAXE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -19.2, an decline from the EPS of Rs -8.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 49.9, stands at -2.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -5.3 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	33.8	42.3
TTM Earnings per share	Rs	-8.8	-19.2
Diluted earnings per share	Rs	-8.8	-19.2
Price to Cash Flow	x	-12.7	-5.3
TTM P/E ratio	x	-9.1	-2.6
Price / Book Value ratio	x	1.2	1.7
Market Cap	Rs m	15,089	15,031
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OMAXE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 -3.0x during FY23, from -0.6x 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 -39.1% during FY23, from -13.0% 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 -20.7% during FY23, from -4.2% 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 -1.8% during FY23, from -0.3% 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	1.1
Debtors’ Days	Days	23	18
Interest coverage	x	-0.6	-3.0
Debt to equity ratio	x	0.4	0.8
Return on assets	%	-0.3	-1.8
Return on equity	%	-13.0	-39.1
Return on capital employed	%	-4.2	-20.7

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

OMAXE Share Price Performance

Over the last one year, OMAXE share price has moved down from Rs 80.2 to Rs 49.9, registering a loss of Rs 30.3 or around 37.8%.

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 OMAXE and quarterly results for OMAXE)