ANAND RAYONS 2022-23 Annual Report Analysis

Wed, 1 Nov

ANAND RAYONS 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.

ANAND RAYONS Income Statement Analysis

• Operating income during the year rose 0.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.1% in FY23 as against 2.4% in FY22.
• Depreciation charges increased by 0.0% and finance costs decreased by 25.2% YoY, respectively.
• Other income grew by 38.7% YoY.
• Net profit for the year grew by 7.4% YoY.
• Net profit margins during the year grew from 0.9% in FY22 to 0.9% in FY23.

ANAND RAYONS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,341	3,365	0.7%
Other income	Rs m	1	1	38.7%
Total Revenues	Rs m	3,341	3,366	0.7%
Gross profit	Rs m	80	71	-11.5%
Depreciation	Rs m	1	1	0.0%
Interest	Rs m	39	29	-25.2%
Profit before tax	Rs m	41	42	2.1%
Tax	Rs m	12	11	-11.0%
Profit after tax	Rs m	29	32	7.4%
Gross profit margin	%	2.4	2.1
Effective tax rate	%	28.9	25.2
Net profit margin	%	0.9	0.9

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ANAND RAYONS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 330 million as compared to Rs 412 million in FY22, thereby witnessing an decrease of -20.0%.
• Long-term debt down at Rs 76 million as compared to Rs 77 million during FY22, a fall of 1.4%.
• Current assets fell 7% and stood at Rs 724 million, while fixed assets rose 10% and stood at Rs 13 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 737 million as against Rs 789 million during FY22, thereby witnessing a fall of 7%.

ANAND RAYONS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	300	331	10.6
Current Liabilities	Rs m	412	330	-20.0
Long-term Debt	Rs m	77	76	-1.4
Total Liabilities	Rs m	789	737	-6.6
Current assets	Rs m	777	724	-6.8
Fixed Assets	Rs m	12	13	9.8
Total Assets	Rs m	789	737	-6.6

ANAND RAYONS Cash Flow Statement Analysis

• ANAND RAYONS's cash flow from operating activities (CFO) during FY23 stood at Rs 50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 million, an improvement of 25.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -23 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 25 million from the Rs 0 million net cash flows seen during FY22.

ANAND RAYONS 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	87	50	-42.9%
Cash Flow from Investing Activities	Rs m	-2	-2	-
Cash Flow from Financing Activities	Rs m	-86	-23	-
Net Cash Flow	Rs m	0	25	-

Current Valuations for ANAND RAYONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an improvement from the EPS of Rs 2.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.1, stands at 14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 27.4 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	223.0	224.6
TTM Earnings per share	Rs	2.0	2.1
Diluted earnings per share	Rs	2.0	2.1
Price to Cash Flow	x	24.6	27.4
TTM P/E ratio	x	25.5	14.5
Price / Book Value ratio	x	8.4	2.7
Market Cap	Rs m	2,524	891
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ANAND RAYONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.9x 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 2.5x during FY23, from 2.1x 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 9.5% during FY23, from 9.8% 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 17.5% during FY23, from 21.2% 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 8.2% during FY23, from 8.6% 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	1.9	2.2
Debtors’ Days	Days	66,683,148	57,612,452
Interest coverage	x	2.1	2.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	8.6	8.2
Return on equity	%	9.8	9.5
Return on capital employed	%	21.2	17.5

To see how ANAND RAYONS has performed over the last 5 years, please visit here.

ANAND RAYONS Share Price Performance

Over the last one year, ANAND RAYONS share price has moved down from Rs 55.5 to Rs 39.1, registering a loss of Rs 16.4 or around 29.5%.

Overall, the S&P BSE SENSEX is up 4.7% over the year.

(To know more, check out historical annual results for ANAND RAYONS and quarterly results for ANAND RAYONS)