AYM SYNTEX 2022-23 Annual Report Analysis

Tue, 26 Sep

AYM SYNTEX 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.

AYM SYNTEX Income Statement Analysis

• Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY23 as against 10.8% in FY22.
• Depreciation charges increased by 11.8% and finance costs increased by 0.2% YoY, respectively.
• Other income grew by 80.5% YoY.
• Net profit for the year declined by 85.9% YoY.
• Net profit margins during the year declined from 3.4% in FY22 to 0.5% in FY23.

AYM SYNTEX Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,915	14,578	-2.3%
Other income	Rs m	44	79	80.5%
Total Revenues	Rs m	14,958	14,657	-2.0%
Gross profit	Rs m	1,617	953	-41.1%
Depreciation	Rs m	506	565	11.8%
Interest	Rs m	359	360	0.2%
Profit before tax	Rs m	796	106	-86.6%
Tax	Rs m	288	35	-87.9%
Profit after tax	Rs m	508	72	-85.9%
Gross profit margin	%	10.8	6.5
Effective tax rate	%	36.1	32.6
Net profit margin	%	3.4	0.5

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AYM SYNTEX Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -3.8%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 3.4%.
• Current assets fell 3% and stood at Rs 4 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 9 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 0%.

AYM SYNTEX Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,081	4,172	2.2
Current Liabilities	Rs m	3,563	3,427	-3.8
Long-term Debt	Rs m	1,467	1,516	3.4
Total Liabilities	Rs m	9,380	9,393	0.1
Current assets	Rs m	4,293	4,162	-3.1
Fixed Assets	Rs m	5,087	5,231	2.8
Total Assets	Rs m	9,380	9,393	0.1

AYM SYNTEX Cash Flow Statement Analysis

• AYM SYNTEX 's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 135.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -739 million, an improvement of 29.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -390 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 52 million from the Rs -32 million net cash flows seen during FY22.

AYM SYNTEX 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	501	1,181	135.9%
Cash Flow from Investing Activities	Rs m	-570	-739	-
Cash Flow from Financing Activities	Rs m	37	-390	-
Net Cash Flow	Rs m	-32	52	-

Current Valuations for AYM SYNTEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.5, stands at -34.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.7 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	297.4	289.5
TTM Earnings per share	Rs	10.1	1.4
Diluted earnings per share	Rs	10.0	1.4
Price to Cash Flow	x	5.6	7.7
TTM P/E ratio	x	15.1	-34.4
Price / Book Value ratio	x	1.2	1.2
Market Cap	Rs m	5,003	4,920
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AYM SYNTEX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 1.3x during FY23, from 3.2x 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 1.7% during FY23, from 12.5% 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 declined and down at 8.2% during FY23, from 20.8% 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 4.6% during FY23, from 9.2% 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	1.2	1.2
Debtors’ Days	Days	274	261
Interest coverage	x	3.2	1.3
Debt to equity ratio	x	0.4	0.4
Return on assets	%	9.2	4.6
Return on equity	%	12.5	1.7
Return on capital employed	%	20.8	8.2

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

AYM SYNTEX Share Price Performance

Over the last one year, AYM SYNTEX share price has moved down from Rs 76.2 to Rs 66.5, registering a loss of Rs 9.7 or around 12.7%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for AYM SYNTEX and quarterly results for AYM SYNTEX )