ALICON CASTALLOY 2022-23 Annual Report Analysis

Thu, 8 Feb

ALICON CASTALLOY 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.

ALICON CASTALLOY Income Statement Analysis

• Operating income during the year rose 30.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY23 as against 10.4% in FY22.
• Depreciation charges increased by 19.7% and finance costs increased by 3.7% YoY, respectively.
• Other income grew by 5.5% YoY.
• Net profit for the year grew by 112.7% YoY.
• Net profit margins during the year grew from 2.2% in FY22 to 3.7% in FY23.

ALICON CASTALLOY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,781	14,012	30.0%
Other income	Rs m	33	35	5.5%
Total Revenues	Rs m	10,814	14,047	29.9%
Gross profit	Rs m	1,125	1,534	36.4%
Depreciation	Rs m	531	636	19.7%
Interest	Rs m	301	312	3.7%
Profit before tax	Rs m	326	621	90.6%
Tax	Rs m	84	107	27.2%
Profit after tax	Rs m	242	514	112.7%
Gross profit margin	%	10.4	10.9
Effective tax rate	%	25.8	17.2
Net profit margin	%	2.2	3.7

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ALICON CASTALLOY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 14.4%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY22, a fall of 5.5%.
• Current assets rose 12% and stood at Rs 6 billion, while fixed assets rose 3% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 8%.

ALICON CASTALLOY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,490	4,879	8.7
Current Liabilities	Rs m	4,069	4,655	14.4
Long-term Debt	Rs m	1,149	1,086	-5.5
Total Liabilities	Rs m	10,082	10,876	7.9
Current assets	Rs m	5,620	6,284	11.8
Fixed Assets	Rs m	4,462	4,591	2.9
Total Assets	Rs m	10,082	10,876	7.9

ALICON CASTALLOY Cash Flow Statement Analysis

• ALICON CASTALLOY's cash flow from operating activities (CFO) during FY23 stood at Rs 869 million, an improvement of 12.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -817 million, an improvement of 13.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -42 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 10 million from the Rs -35 million net cash flows seen during FY22.

ALICON CASTALLOY 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	772	869	12.5%
Cash Flow from Investing Activities	Rs m	-717	-817	-
Cash Flow from Financing Activities	Rs m	-90	-42	-
Net Cash Flow	Rs m	-35	10	-

Current Valuations for ALICON CASTALLOY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.9, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 670.3, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	669.2	869.7
TTM Earnings per share	Rs	15.0	31.9
Diluted earnings per share	Rs	15.0	31.9
Price to Cash Flow	x	13.8	11.8
TTM P/E ratio	x	43.9	21.0
Price / Book Value ratio	x	2.5	2.8
Market Cap	Rs m	11,310	13,613
Dividends per share (Unadj.)	Rs	2.3	6.3

Ratio Analysis for ALICON CASTALLOY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 improved and stood at 3.0x during FY23, from 2.1x 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 10.5% during FY23, from 5.4% 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 15.7% during FY23, from 11.1% 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 7.6% during FY23, from 5.4% 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	1.3
Debtors’ Days	Days	1,363	1,149
Interest coverage	x	2.1	3.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	5.4	7.6
Return on equity	%	5.4	10.5
Return on capital employed	%	11.1	15.7

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

ALICON CASTALLOY Share Price Performance

Over the last one year, ALICON CASTALLOY share price has moved up from Rs 659.6 to Rs 670.3, registering a gain of Rs 10.7 or around 1.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

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

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