AJANTA SOYA 2022-23 Annual Report Analysis

Tue, 31 Oct

AJANTA SOYA 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.

AJANTA SOYA Income Statement Analysis

• Operating income during the year fell 8.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 87.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.5% in FY23 as against 3.5% in FY22.
• Depreciation charges increased by 30.3% and finance costs increased by 175.4% YoY, respectively.
• Other income declined by 41.4% YoY.
• Net profit for the year declined by 94.7% YoY.
• Net profit margins during the year declined from 3.1% in FY22 to 0.2% in FY23.

AJANTA SOYA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,451	12,362	-8.1%
Other income	Rs m	52	30	-41.4%
Total Revenues	Rs m	13,503	12,392	-8.2%
Gross profit	Rs m	477	62	-87.0%
Depreciation	Rs m	19	25	30.3%
Interest	Rs m	11	29	175.4%
Profit before tax	Rs m	499	38	-92.3%
Tax	Rs m	77	16	-79.3%
Profit after tax	Rs m	422	22	-94.7%
Gross profit margin	%	3.5	0.5
Effective tax rate	%	15.4	41.5
Net profit margin	%	3.1	0.2

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AJANTA SOYA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 993 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -26.6%.
• Current assets fell 14% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 496 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 12%.

AJANTA SOYA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,232	1,258	2.1
Current Liabilities	Rs m	1,353	993	-26.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,645	2,319	-12.3
Current assets	Rs m	2,131	1,823	-14.5
Fixed Assets	Rs m	514	496	-3.5
Total Assets	Rs m	2,645	2,319	-12.3

AJANTA SOYA Cash Flow Statement Analysis

• AJANTA SOYA's cash flow from operating activities (CFO) during FY23 stood at Rs -234 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 202 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 million, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -49 million from the Rs -2 million net cash flows seen during FY22.

AJANTA SOYA 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	282	-234	-
Cash Flow from Investing Activities	Rs m	-246	202	-
Cash Flow from Financing Activities	Rs m	-37	-17	-
Net Cash Flow	Rs m	-2	-49	-

Current Valuations for AJANTA SOYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 26.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 33.0, stands at -24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 78.3 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	835.5	153.6
TTM Earnings per share	Rs	26.2	0.3
Diluted earnings per share	Rs	5.2	0.3
Price to Cash Flow	x	7.1	78.3
TTM P/E ratio	x	7.4	-24.9
Price / Book Value ratio	x	0.5	2.9
Market Cap	Rs m	628	3,677
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AJANTA SOYA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x 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 deteriorated and stood at 2.3x during FY23, from 48.2x 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 1.8% during FY23, from 34.3% 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 5.4% during FY23, from 41.3% 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 2.2% during FY23, from 16.4% 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	1.6	1.8
Debtors’ Days	Days	60	108
Interest coverage	x	48.2	2.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	2.2
Return on equity	%	34.3	1.8
Return on capital employed	%	41.3	5.4

To see how AJANTA SOYA has performed over the last 5 years, please visit here.

AJANTA SOYA Share Price Performance

Over the last one year, AJANTA SOYA share price has moved down from Rs 42.2 to Rs 33.0, registering a loss of Rs 9.3 or around 21.9%.

Overall, the S&P BSE SENSEX is up 7.0% over the year.

(To know more, check out historical annual results for AJANTA SOYA and quarterly results for AJANTA SOYA)