ARCHIES 2022-23 Annual Report Analysis

Wed, 25 Oct

ARCHIES 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.

ARCHIES Income Statement Analysis

• Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.2% in FY23 as against 7.0% in FY22.
• Depreciation charges decreased by 19.1% and finance costs decreased by 9.2% YoY, respectively.
• Other income grew by 35.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.4% in FY22 to 2.8% in FY23.

ARCHIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	772	860	11.5%
Other income	Rs m	89	121	35.7%
Total Revenues	Rs m	861	981	14.0%
Gross profit	Rs m	54	45	-17.6%
Depreciation	Rs m	127	103	-19.1%
Interest	Rs m	57	52	-9.2%
Profit before tax	Rs m	-41	11	NA
Tax	Rs m	-14	-13	NA
Profit after tax	Rs m	-26	24	NA
Gross profit margin	%	7.0	5.2
Effective tax rate	%	35.2	-116.0
Net profit margin	%	-3.4	2.8

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ARCHIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 415 million as compared to Rs 502 million in FY22, thereby witnessing an decrease of -17.3%.
• Long-term debt down at Rs 7 million as compared to Rs 18 million during FY22, a fall of 58.5%.
• Current assets fell 1% and stood at Rs 777 million, while fixed assets fell 10% and stood at Rs 928 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 6%.

ARCHIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,048	1,073	2.4
Current Liabilities	Rs m	502	415	-17.3
Long-term Debt	Rs m	18	7	-58.5
Total Liabilities	Rs m	1,815	1,704	-6.1
Current assets	Rs m	781	777	-0.5
Fixed Assets	Rs m	1,034	928	-10.3
Total Assets	Rs m	1,815	1,704	-6.1

ARCHIES Cash Flow Statement Analysis

• ARCHIES's cash flow from operating activities (CFO) during FY23 stood at Rs 68 million, an improvement of 120.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 98 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -166 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -1 million net cash flows seen during FY22.

ARCHIES 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	31	68	120.4%
Cash Flow from Investing Activities	Rs m	-8	98	-
Cash Flow from Financing Activities	Rs m	-24	-166	-
Net Cash Flow	Rs m	-1	-1	-

Current Valuations for ARCHIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an improvement from the EPS of Rs -0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.1, stands at 36.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 5.8 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	22.8	25.5
TTM Earnings per share	Rs	-0.8	0.7
Diluted earnings per share	Rs	-0.8	0.7
Price to Cash Flow	x	6.0	5.8
TTM P/E ratio	x	-22.8	36.8
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	665	732
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARCHIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 improved and stood at 1.2x during FY23, from 0.3x 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 2.2% during FY23, from -2.5% 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 improved and stood at 5.8% during FY23, from 1.6% 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 4.5% during FY23, from 1.7% 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	1.9
Debtors’ Days	Days	435	375
Interest coverage	x	0.3	1.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.7	4.5
Return on equity	%	-2.5	2.2
Return on capital employed	%	1.6	5.8

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

ARCHIES Share Price Performance

Over the last one year, ARCHIES share price has moved up from Rs 20.2 to Rs 23.1, registering a gain of Rs 2.9 or around 14.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,451.8 (down 0.5%). Over the last one year it has moved up from 15,979.3 to 18,451.8, a gain of 2,472 points (up 15.5%).

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

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