AJMERA REALTY 2022-23 Annual Report Analysis

Wed, 11 Oct

AJMERA REALTY 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.

AJMERA REALTY Income Statement Analysis

• Operating income during the year fell 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.9% in FY23 as against 24.1% in FY22.
• Depreciation charges decreased by 10.6% and finance costs decreased by 38.7% YoY, respectively.
• Other income grew by 48.1% YoY.
• Net profit for the year grew by 54.5% YoY.
• Net profit margins during the year grew from 9.6% in FY22 to 16.6% in FY23.

AJMERA REALTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,827	4,311	-10.7%
Other income	Rs m	64	95	48.1%
Total Revenues	Rs m	4,891	4,406	-9.9%
Gross profit	Rs m	1,162	1,244	7.1%
Depreciation	Rs m	17	15	-10.6%
Interest	Rs m	592	363	-38.7%
Profit before tax	Rs m	617	962	55.8%
Tax	Rs m	154	246	59.8%
Profit after tax	Rs m	463	716	54.5%
Gross profit margin	%	24.1	28.9
Effective tax rate	%	24.9	25.6
Net profit margin	%	9.6	16.6

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AJMERA REALTY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -58.0%.
• Long-term debt down at Rs 8 billion as compared to Rs 8 billion during FY22, a fall of 1.2%.
• Current assets rose 3% and stood at Rs 15 billion, while fixed assets fell 24% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 20 billion during FY22, thereby witnessing a fall of 5%.

AJMERA REALTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,099	7,737	9.0
Current Liabilities	Rs m	2,621	1,100	-58.0
Long-term Debt	Rs m	8,154	8,059	-1.2
Total Liabilities	Rs m	20,185	19,216	-4.8
Current assets	Rs m	14,310	14,744	3.0
Fixed Assets	Rs m	5,875	4,473	-23.9
Total Assets	Rs m	20,185	19,216	-4.8

AJMERA REALTY Cash Flow Statement Analysis

• AJMERA REALTY's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -470 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -862 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 39 million from the Rs -18 million net cash flows seen during FY22.

AJMERA REALTY 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	-636	1,370	-
Cash Flow from Investing Activities	Rs m	285	-470	-
Cash Flow from Financing Activities	Rs m	333	-862	-
Net Cash Flow	Rs m	-18	39	-

Current Valuations for AJMERA REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.2, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 420.3, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 3.5 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	136.0	121.5
TTM Earnings per share	Rs	13.1	20.2
Diluted earnings per share	Rs	13.1	20.2
Price to Cash Flow	x	24.2	14.9
TTM P/E ratio	x	25.0	18.3
Price / Book Value ratio	x	1.5	1.4
Market Cap	Rs m	10,584	10,922
Dividends per share (Unadj.)	Rs	2.3	3.0

Ratio Analysis for AJMERA REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 13.4x during FY23, from 5.5x 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 3.7x during FY23, from 2.0x 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 9.3% during FY23, from 6.5% 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 8.4% during FY23, from 7.9% 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 5.6% during FY23, from 5.2% 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	5.5	13.4
Debtors’ Days	Days	1,998	1,158
Interest coverage	x	2.0	3.7
Debt to equity ratio	x	1.1	1.0
Return on assets	%	5.2	5.6
Return on equity	%	6.5	9.3
Return on capital employed	%	7.9	8.4

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 up from Rs 262.8 to Rs 420.3, registering a gain of Rs 157.5 or around 59.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,876.6 (up 0.7%). Over the last one year it has moved up from 3,352.3 to 4,876.6, a gain of 1,524 points (up 45.5%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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