ASIAN GRANITO 2022-23 Annual Report Analysis

Thu, 21 Sep

ASIAN GRANITO 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.

ASIAN GRANITO Income Statement Analysis

• Operating income during the year fell 0.1% 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 4.7% in FY23 as against 7.7% in FY22.
• Depreciation charges increased by 13.5% and finance costs increased by 5.4% YoY, respectively.
• Other income declined by 56.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 5.9% in FY22 to 5.6% in FY23.

ASIAN GRANITO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,638	15,627	-0.1%
Other income	Rs m	493	214	-56.6%
Total Revenues	Rs m	16,131	15,841	-1.8%
Gross profit	Rs m	1,202	-727	NA
Depreciation	Rs m	301	341	13.5%
Interest	Rs m	256	270	5.4%
Profit before tax	Rs m	1,139	-1,124	NA
Tax	Rs m	218	-255	NA
Profit after tax	Rs m	921	-869	NA
Gross profit margin	%	7.7	-4.7
Effective tax rate	%	19.1	22.7
Net profit margin	%	5.9	-5.6

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ASIAN GRANITO 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 23.7%.
• Long-term debt down at Rs 815 million as compared to Rs 899 million during FY22, a fall of 9.3%.
• Current assets rose 16% and stood at Rs 11 billion, while fixed assets rose 44% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 26%.

ASIAN GRANITO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,182	12,561	36.8
Current Liabilities	Rs m	4,424	5,473	23.7
Long-term Debt	Rs m	899	815	-9.3
Total Liabilities	Rs m	15,287	19,217	25.7
Current assets	Rs m	9,756	11,277	15.6
Fixed Assets	Rs m	5,531	7,940	43.6
Total Assets	Rs m	15,287	19,217	25.7

ASIAN GRANITO Cash Flow Statement Analysis

• ASIAN GRANITO 's cash flow from operating activities (CFO) during FY23 stood at Rs -493 million, an improvement of 560.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 1,715.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 317% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -643 million from the Rs 670 million net cash flows seen during FY22.

ASIAN GRANITO 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	-75	-493	-
Cash Flow from Investing Activities	Rs m	-233	-4,227	-
Cash Flow from Financing Activities	Rs m	977	4,077	317.3%
Net Cash Flow	Rs m	670	-643	-

Current Valuations for ASIAN GRANITO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.9, an decline from the EPS of Rs 16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 63.5, stands at -9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -16.6 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	275.6	123.3
TTM Earnings per share	Rs	16.2	-6.9
Diluted earnings per share	Rs	7.3	-6.9
Price to Cash Flow	x	7.7	-16.6
TTM P/E ratio	x	10.2	-9.3
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	8,635	8,766
Dividends per share (Unadj.)	Rs	0.7	0.0

Ratio Analysis for ASIAN GRANITO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 2.2x 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 -3.2x during FY23, from 5.5x 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 -6.9% during FY23, from 10.0% 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 -6.4% during FY23, from 13.8% 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 -3.1% during FY23, from 7.7% 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	2.2	2.1
Debtors’ Days	Days	1,095	975
Interest coverage	x	5.5	-3.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.7	-3.1
Return on equity	%	10.0	-6.9
Return on capital employed	%	13.8	-6.4

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

ASIAN GRANITO Share Price Performance

Over the last one year, ASIAN GRANITO share price has moved up from Rs 60.4 to Rs 63.5, registering a gain of Rs 3.1 or around 5.0%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for ASIAN GRANITO and quarterly results for ASIAN GRANITO )