ALPS INDS. 2022-23 Annual Report Analysis

Thu, 1 Jun

ALPS INDS. 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.

ALPS INDS. Income Statement Analysis

• Operating income during the year fell 94.1% 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 40.0% in FY23 as against 6.9% in FY22.
• Depreciation charges decreased by 100.0% and finance costs decreased by 9.7% YoY, respectively.
• Other income declined by 41.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 27.4% in FY22 to 333.5% in FY23.

ALPS INDS. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,024	179	-94.1%
Other income	Rs m	39	23	-41.3%
Total Revenues	Rs m	3,063	202	-93.4%
Gross profit	Rs m	-209	-72	NA
Depreciation	Rs m	50	0	-100.0%
Interest	Rs m	608	549	-9.7%
Profit before tax	Rs m	-829	-598	NA
Tax	Rs m	0	0	-100.0%
Profit after tax	Rs m	-829	-598	NA
Gross profit margin	%	-6.9	-40.0
Effective tax rate	%	0.0	0.0
Net profit margin	%	-27.4	-333.5

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ALPS INDS. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 1.8%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY22, a growth of 3.5%.
• Current assets fell 92% and stood at Rs 34 million, while fixed assets fell 20% and stood at Rs 36 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 70 million as against Rs 455 million during FY22, thereby witnessing a fall of 85%.

ALPS INDS. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-7,133	-7,732	NA
Current Liabilities	Rs m	3,177	3,235	1.8
Long-term Debt	Rs m	4,414	4,569	3.5
Total Liabilities	Rs m	455	70	-84.7
Current assets	Rs m	410	34	-91.7
Fixed Assets	Rs m	44	36	-19.7
Total Assets	Rs m	455	70	-84.7

ALPS INDS. Cash Flow Statement Analysis

• ALPS INDS.'s cash flow from operating activities (CFO) during FY23 stood at Rs 381 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -386 million, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs -5 million net cash flows seen during FY22.

ALPS INDS. 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	-586	381	-
Cash Flow from Investing Activities	Rs m	1,021	3	-99.7%
Cash Flow from Financing Activities	Rs m	-440	-386	-
Net Cash Flow	Rs m	-5	-2	-

Current Valuations for ALPS INDS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.3, an improvement from the EPS of Rs -21.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2.4, stands at -0.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -0.2 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	77.3	4.6
TTM Earnings per share	Rs	-21.2	-15.3
Diluted earnings per share	Rs	-21.2	-15.3
Price to Cash Flow	x	-0.2	-0.2
TTM P/E ratio	x	-0.2	-0.2
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	142	138
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALPS INDS.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY23, from 0.1x 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 -0.1x during FY23, from -0.4x 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 7.7% during FY23, from 11.6% 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 1.5% during FY23, from 8.1% 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 -70.3% during FY23, from -48.5% 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	0.1	0.0
Debtors’ Days	Days	380	75
Interest coverage	x	-0.4	-0.1
Debt to equity ratio	x	-0.6	-0.6
Return on assets	%	-48.5	-70.3
Return on equity	%	11.6	7.7
Return on capital employed	%	8.1	1.5

To see how ALPS INDS. has performed over the last 5 years, please visit here.

ALPS INDS. Share Price Performance

Over the last one year, ALPS INDS. share price has moved down from Rs 4.4 to Rs 2.4, registering a loss of Rs 2.0 or around 46.0%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for ALPS INDS. and quarterly results for ALPS INDS.)