ARCHIDPLY DECOR 2022-23 Annual Report Analysis

Tue, 31 Oct

ARCHIDPLY DECOR 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.

ARCHIDPLY DECOR Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.7% in FY23 as against 5.5% in FY22.
• Depreciation charges increased by 5.3% and finance costs decreased by 11.8% YoY, respectively.
• Other income grew by 8.2% YoY.
• Net profit for the year grew by 196.7% YoY.
• Net profit margins during the year grew from 0.6% in FY22 to 1.4% in FY23.

ARCHIDPLY DECOR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	420	505	20.2%
Other income	Rs m	11	12	8.2%
Total Revenues	Rs m	431	516	19.9%
Gross profit	Rs m	23	29	24.2%
Depreciation	Rs m	12	13	5.3%
Interest	Rs m	19	16	-11.8%
Profit before tax	Rs m	3	11	265.4%
Tax	Rs m	1	4	572.7%
Profit after tax	Rs m	2	7	196.7%
Gross profit margin	%	5.5	5.7
Effective tax rate	%	18.3	33.6
Net profit margin	%	0.6	1.4

Don't Miss: Key Information for Long-term Investors

ARCHIDPLY DECOR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 209 million as compared to Rs 201 million in FY22, thereby witnessing an increase of 3.6%.
• Current assets fell 1% and stood at Rs 444 million, while fixed assets rose 8% and stood at Rs 277 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 721 million as against Rs 705 million during FY22, thereby witnessing a growth of 2%.

ARCHIDPLY DECOR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	499	507	1.5
Current Liabilities	Rs m	201	209	3.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	705	721	2.2
Current assets	Rs m	450	444	-1.3
Fixed Assets	Rs m	256	277	8.3
Total Assets	Rs m	705	721	2.2

ARCHIDPLY DECOR Cash Flow Statement Analysis

• ARCHIDPLY DECOR's cash flow from operating activities (CFO) during FY23 stood at Rs 49 million, an improvement of 204.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -26 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -4 million net cash flows seen during FY22.

ARCHIDPLY DECOR 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	16	49	204.2%
Cash Flow from Investing Activities	Rs m	15	-24	-
Cash Flow from Financing Activities	Rs m	-35	-26	-
Net Cash Flow	Rs m	-4	-1	-

Current Valuations for ARCHIDPLY DECOR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.0, stands at 1,769.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	75.4	90.7
TTM Earnings per share	Rs	0.4	1.3
Diluted earnings per share	Rs	0.4	1.3
Price to Cash Flow	x	16.7	18.2
TTM P/E ratio	x	125.2	1,769.3
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	243	369
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARCHIDPLY DECOR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 2.2x 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 improved and stood at 1.7x during FY23, from 1.2x 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 improved and stood at 1.4% during FY23, from 0.5% 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 5.4% during FY23, from 4.3% 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 improved and stood at 3.3% during FY23, from 3.0% 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	2.2	2.1
Debtors’ Days	Days	1,556	1,514
Interest coverage	x	1.2	1.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.0	3.3
Return on equity	%	0.5	1.4
Return on capital employed	%	4.3	5.4

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

ARCHIDPLY DECOR Share Price Performance

Over the last one year, ARCHIDPLY DECOR share price has moved down from Rs 63.9 to Rs 0.0, registering a loss of Rs 63.9 or around 100.0%.

Overall, the NIFTY 50 is down 0.4% over the year.

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