AJMERA REALTY 2021-22 Annual Report Analysis

Tue, 2 Aug

AJMERA REALTY 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.

AJMERA REALTY Income Statement Analysis

• Operating income during the year rose 39.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.1% in FY22 as against 27.5% in FY21.
• Depreciation charges decreased by 5.3% and finance costs increased by 2.5% YoY, respectively.
• Other income grew by 26.8% YoY.
• Net profit for the year grew by 47.2% YoY.
• Net profit margins during the year grew from 9.1% in FY21 to 9.6% in FY22.

AJMERA REALTY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,467	4,827	39.2%
Other income	Rs m	51	64	26.8%
Total Revenues	Rs m	3,518	4,891	39.0%
Gross profit	Rs m	954	1,162	21.7%
Depreciation	Rs m	18	17	-5.3%
Interest	Rs m	577	592	2.5%
Profit before tax	Rs m	410	617	50.6%
Tax	Rs m	95	154	61.8%
Profit after tax	Rs m	315	463	47.2%
Gross profit margin	%	27.5	24.1
Effective tax rate	%	23.2	24.9
Net profit margin	%	9.1	9.6

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AJMERA REALTY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 9.4%.
• Long-term debt stood at Rs 8 billion as compared to Rs 7 billion during FY21, a growth of 17.5%.
• Current assets rose 10% and stood at Rs 14 billion, while fixed assets fell 2% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 6%.

AJMERA REALTY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,647	7,099	6.8
Current Liabilities	Rs m	2,395	2,621	9.4
Long-term Debt	Rs m	6,937	8,154	17.5
Total Liabilities	Rs m	18,970	20,185	6.4
Current assets	Rs m	12,980	14,310	10.2
Fixed Assets	Rs m	5,990	5,875	-1.9
Total Assets	Rs m	18,970	20,185	6.4

AJMERA REALTY Cash Flow Statement Analysis

• AJMERA REALTY's cash flow from operating activities (CFO) during FY22 stood at Rs -636 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 285 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 333 million, an improvement of 119% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -18 million from the Rs 167 million net cash flows seen during FY21.

AJMERA REALTY 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	2,007	-636	-
Cash Flow from Investing Activities	Rs m	-95	285	-
Cash Flow from Financing Activities	Rs m	-1,745	333	-
Net Cash Flow	Rs m	167	-18	-

Current Valuations for AJMERA REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an improvement from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 289.1, stands at 22.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 22.0 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	97.7	136.0
TTM Earnings per share	Rs	8.9	13.1
Diluted earnings per share	Rs	8.9	13.1
Price to Cash Flow	x	12.5	22.0
TTM P/E ratio	x	13.2	22.1
Price / Book Value ratio	x	0.6	1.5
Market Cap	Rs m	3,793	10,584
Dividends per share (Unadj.)	Rs	1.4	2.3

Ratio Analysis for AJMERA REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.5x during FY22, from 5.4x 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 improved and stood at 2.0x during FY22, from 1.7x 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 improved and stood at 6.5% during FY22, from 4.7% 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 improved and stood at 7.9% during FY22, from 7.3% 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 improved and stood at 5.2% during FY22, from 4.7% 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	5.4	5.5
Debtors’ Days	Days	1,888	1,998
Interest coverage	x	1.7	2.0
Debt to equity ratio	x	1.0	1.1
Return on assets	%	4.7	5.2
Return on equity	%	4.7	6.5
Return on capital employed	%	7.3	7.9

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

AJMERA REALTY Share Price Performance

Over the last one year, AJMERA REALTY share price has moved down from Rs 320.5 to Rs 289.1, registering a loss of Rs 31.5 or around 9.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,542.5 (down 1.7%). Over the last one year it has moved up from 3,338.0 to 3,542.5, a gain of 205 points (up 6.1%).

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

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

Read: Latest Annual Report Analysis of AJMERA REALTY