ALPHAGEO (INDIA) 2022-23 Annual Report Analysis

Wed, 25 Oct

ALPHAGEO (INDIA) 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.

ALPHAGEO (INDIA) Income Statement Analysis

• Operating income during the year fell 57.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 79.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.4% in FY23 as against 21.5% in FY22.
• Depreciation charges decreased by 36.8% and finance costs decreased by 50.9% YoY, respectively.
• Other income grew by 356.0% YoY.
• Net profit for the year grew by 6.6% YoY.
• Net profit margins during the year grew from 7.9% in FY22 to 19.7% in FY23.

ALPHAGEO (INDIA) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,549	660	-57.4%
Other income	Rs m	53	241	356.0%
Total Revenues	Rs m	1,602	901	-43.8%
Gross profit	Rs m	332	68	-79.4%
Depreciation	Rs m	198	125	-36.8%
Interest	Rs m	11	5	-50.9%
Profit before tax	Rs m	176	179	1.6%
Tax	Rs m	54	49	-9.8%
Profit after tax	Rs m	122	130	6.6%
Gross profit margin	%	21.5	10.4
Effective tax rate	%	30.7	27.3
Net profit margin	%	7.9	19.7

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ALPHAGEO (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 64 million as compared to Rs 411 million in FY22, thereby witnessing an decrease of -84.4%.
• Current assets fell 9% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 723 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 6%.

ALPHAGEO (INDIA) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,717	2,832	4.2
Current Liabilities	Rs m	411	64	-84.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,016	2,831	-6.1
Current assets	Rs m	2,311	2,108	-8.8
Fixed Assets	Rs m	705	723	2.5
Total Assets	Rs m	3,016	2,831	-6.1

ALPHAGEO (INDIA) Cash Flow Statement Analysis

• ALPHAGEO (INDIA)'s cash flow from operating activities (CFO) during FY23 stood at Rs 126 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -677 million, an improvement of 187.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -56 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -581 million from the Rs 506 million net cash flows seen during FY22.

ALPHAGEO (INDIA) 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	794	126	-84.1%
Cash Flow from Investing Activities	Rs m	-236	-677	-
Cash Flow from Financing Activities	Rs m	-62	-56	-
Net Cash Flow	Rs m	506	-581	-

Current Valuations for ALPHAGEO (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.4, an improvement from the EPS of Rs 19.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 284.0, stands at 61.4 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 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	243.5	103.7
TTM Earnings per share	Rs	19.2	20.4
Diluted earnings per share	Rs	19.2	20.4
Price to Cash Flow	x	6.1	7.1
TTM P/E ratio	x	16.1	61.4
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	2,182	1,811
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for ALPHAGEO (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 33.0x during FY23, from 5.6x 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 33.8x during FY23, from 16.8x 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 4.6% during FY23, from 4.5% 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 6.5% during FY23, from 6.9% 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 4.8% during FY23, from 4.4% 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	5.6	33.0
Debtors’ Days	Days	1,943	1,800
Interest coverage	x	16.8	33.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.4	4.8
Return on equity	%	4.5	4.6
Return on capital employed	%	6.9	6.5

To see how ALPHAGEO (INDIA) has performed over the last 5 years, please visit here.

ALPHAGEO (INDIA) Share Price Performance

Over the last one year, ALPHAGEO (INDIA) share price has moved down from Rs 287.0 to Rs 284.0, registering a loss of Rs 3.1 or around 1.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 45,605.4 (down 1.1%). Over the last one year it has moved up from 32,580.4 to 45,605.4, a gain of 13,025 points (up 40.0%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for ALPHAGEO (INDIA) and quarterly results for ALPHAGEO (INDIA))