ADOR FONTECH 2022-23 Annual Report Analysis

Thu, 17 Aug

ADOR FONTECH 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.

ADOR FONTECH Income Statement Analysis

• Operating income during the year rose 2.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY23 as against 13.6% in FY22.
• Depreciation charges increased by 13.3% and finance costs decreased by 20.0% YoY, respectively.
• Other income declined by 15.5% YoY.
• Net profit for the year declined by 17.7% YoY.
• Net profit margins during the year declined from 10.2% in FY22 to 8.2% in FY23.

ADOR FONTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,096	2,142	2.2%
Other income	Rs m	45	38	-15.5%
Total Revenues	Rs m	2,141	2,181	1.8%
Gross profit	Rs m	286	269	-5.8%
Depreciation	Rs m	32	36	13.3%
Interest	Rs m	4	3	-20.0%
Profit before tax	Rs m	296	269	-9.2%
Tax	Rs m	83	93	12.8%
Profit after tax	Rs m	213	176	-17.7%
Gross profit margin	%	13.6	12.6
Effective tax rate	%	27.9	34.7
Net profit margin	%	10.2	8.2

Don't Miss: Key Information for Long-term Investors

ADOR FONTECH Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 288 million as compared to Rs 340 million in FY22, thereby witnessing an decrease of -15.3%.
• Current assets fell 0% and stood at Rs 1 billion, while fixed assets fell 1% and stood at Rs 295 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 0%.

ADOR FONTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,228	1,266	3.1
Current Liabilities	Rs m	340	288	-15.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,516	1,514	-0.1
Current assets	Rs m	1,219	1,219	0.0
Fixed Assets	Rs m	297	295	-0.6
Total Assets	Rs m	1,516	1,514	-0.1

ADOR FONTECH Cash Flow Statement Analysis

• ADOR FONTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 182 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -21 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -141 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 2 million net cash flows seen during FY22.

ADOR FONTECH 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	195	182	-6.7%
Cash Flow from Investing Activities	Rs m	-111	-21	-
Cash Flow from Financing Activities	Rs m	-83	-141	-
Net Cash Flow	Rs m	2	20	1,220.0%

Current Valuations for ADOR FONTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an decline from the EPS of Rs 6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.3, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	59.9	61.2
TTM Earnings per share	Rs	6.1	5.0
Diluted earnings per share	Rs	6.1	5.0
Price to Cash Flow	x	10.0	12.9
TTM P/E ratio	x	11.4	19.6
Price / Book Value ratio	x	1.7	2.2
Market Cap	Rs m	2,138	2,725
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for ADOR FONTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY23, from 3.6x 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 97.0x during FY23, from 85.6x 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 13.9% during FY23, from 17.4% 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 declined and down at 21.5% during FY23, from 24.4% 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 11.8% during FY23, from 14.3% 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	3.6	4.2
Debtors’ Days	Days	491	536
Interest coverage	x	85.6	97.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.3	11.8
Return on equity	%	17.4	13.9
Return on capital employed	%	24.4	21.5

To see how ADOR FONTECH has performed over the last 5 years, please visit here.

ADOR FONTECH Share Price Performance

Over the last one year, ADOR FONTECH share price has moved up from Rs 74.4 to Rs 109.3, registering a gain of Rs 34.9 or around 46.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,278.2 (down 0.8%). Over the last one year it has moved up from 31,115.4 to 43,278.2, a gain of 12,163 points (up 39.1%).

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for ADOR FONTECH and quarterly results for ADOR FONTECH)