ALKALI METALS 2022-23 Annual Report Analysis

Sun, 6 Aug

ALKALI METALS 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.

ALKALI METALS Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.9% in FY23 as against 12.3% in FY22.
• Depreciation charges increased by 11.2% and finance costs increased by 1.3% YoY, respectively.
• Other income grew by 291.4% YoY.
• Net profit for the year declined by 16.3% YoY.
• Net profit margins during the year declined from 3.8% in FY22 to 3.3% in FY23.

ALKALI METALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	910	882	-3.1%
Other income	Rs m	3	11	291.4%
Total Revenues	Rs m	913	894	-2.1%
Gross profit	Rs m	112	96	-14.7%
Depreciation	Rs m	39	43	11.2%
Interest	Rs m	26	27	1.3%
Profit before tax	Rs m	50	38	-25.2%
Tax	Rs m	16	9	-45.0%
Profit after tax	Rs m	35	29	-16.3%
Gross profit margin	%	12.3	10.9
Effective tax rate	%	30.9	22.7
Net profit margin	%	3.8	3.3

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ALKALI METALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 422 million as compared to Rs 380 million in FY22, thereby witnessing an increase of 11.1%.
• Long-term debt down at Rs 10 million as compared to Rs 20 million during FY22, a fall of 51.2%.
• Current assets rose 3% and stood at Rs 482 million, while fixed assets rose 8% and stood at Rs 521 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 949 million during FY22, thereby witnessing a growth of 6%.

ALKALI METALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	521	529	1.5
Current Liabilities	Rs m	380	422	11.1
Long-term Debt	Rs m	20	10	-51.2
Total Liabilities	Rs m	949	1,003	5.6
Current assets	Rs m	468	482	3.1
Fixed Assets	Rs m	482	521	8.1
Total Assets	Rs m	949	1,003	5.6

ALKALI METALS Cash Flow Statement Analysis

• ALKALI METALS's cash flow from operating activities (CFO) during FY23 stood at Rs 112 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -31 million, an improvement of 10.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -90 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs 15 million net cash flows seen during FY22.

ALKALI METALS 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	112	112	0.0%
Cash Flow from Investing Activities	Rs m	-28	-31	-
Cash Flow from Financing Activities	Rs m	-68	-90	-
Net Cash Flow	Rs m	15	-9	-

Current Valuations for ALKALI METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 107.9, stands at 60.5 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 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	89.4	86.7
TTM Earnings per share	Rs	3.4	2.9
Diluted earnings per share	Rs	3.4	2.9
Price to Cash Flow	x	10.8	17.5
TTM P/E ratio	x	22.9	60.5
Price / Book Value ratio	x	1.9	2.4
Market Cap	Rs m	1,010	1,259
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for ALKALI METALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 2.4x during FY23, from 2.9x 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 5.5% during FY23, from 6.7% 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 11.9% during FY23, from 14.2% 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 5.6% during FY23, from 6.4% 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	1.2	1.1
Debtors’ Days	Days	537	566
Interest coverage	x	2.9	2.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	5.6
Return on equity	%	6.7	5.5
Return on capital employed	%	14.2	11.9

To see how ALKALI METALS has performed over the last 5 years, please visit here.

ALKALI METALS Share Price Performance

Over the last one year, ALKALI METALS share price has moved up from Rs 86.9 to Rs 107.9, registering a gain of Rs 21.1 or around 24.2%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for ALKALI METALS and quarterly results for ALKALI METALS)