ARIES AGRO 2022-23 Annual Report Analysis

Mon, 25 Sep

ARIES AGRO 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.

ARIES AGRO Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY23 as against 10.8% in FY22.
• Depreciation charges increased by 35.6% and finance costs decreased by 4.4% YoY, respectively.
• Other income grew by 126.0% YoY.
• Net profit for the year grew by 23.1% YoY.
• Net profit margins during the year grew from 3.0% in FY22 to 3.4% in FY23.

ARIES AGRO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,324	4,722	9.2%
Other income	Rs m	39	88	126.0%
Total Revenues	Rs m	4,363	4,811	10.3%
Gross profit	Rs m	467	478	2.4%
Depreciation	Rs m	58	78	35.6%
Interest	Rs m	245	234	-4.4%
Profit before tax	Rs m	203	254	25.1%
Tax	Rs m	73	94	28.6%
Profit after tax	Rs m	129	159	23.1%
Gross profit margin	%	10.8	10.1
Effective tax rate	%	36.2	37.2
Net profit margin	%	3.0	3.4

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ARIES AGRO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -5.3%.
• Long-term debt stood at Rs 217 million as compared to Rs 180 million during FY22, a growth of 21.0%.
• Current assets fell 0% and stood at Rs 4 billion, while fixed assets rose 10% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 2%.

ARIES AGRO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,242	2,429	8.3
Current Liabilities	Rs m	2,510	2,377	-5.3
Long-term Debt	Rs m	180	217	21.0
Total Liabilities	Rs m	5,090	5,198	2.1
Current assets	Rs m	3,838	3,825	-0.4
Fixed Assets	Rs m	1,252	1,374	9.7
Total Assets	Rs m	5,090	5,198	2.1

ARIES AGRO Cash Flow Statement Analysis

• ARIES AGRO's cash flow from operating activities (CFO) during FY23 stood at Rs 545 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -164 million, an improvement of 29.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -370 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 11 million from the Rs 0 million net cash flows seen during FY22.

ARIES AGRO 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	687	545	-20.7%
Cash Flow from Investing Activities	Rs m	-127	-164	-
Cash Flow from Financing Activities	Rs m	-560	-370	-
Net Cash Flow	Rs m	0	11	4,125.9%

Current Valuations for ARIES AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.3, an improvement from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 178.1, stands at 18.0 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	332.6	363.3
TTM Earnings per share	Rs	10.0	12.3
Diluted earnings per share	Rs	10.0	12.2
Price to Cash Flow	x	9.5	9.5
TTM P/E ratio	x	13.7	18.0
Price / Book Value ratio	x	0.8	0.9
Market Cap	Rs m	1,767	2,264
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for ARIES AGRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.5x 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 2.1x during FY23, from 1.8x 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 6.6% during FY23, from 5.8% 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 18.4% during FY23, from 18.5% 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 7.6% during FY23, from 7.4% 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	1.5	1.6
Debtors’ Days	Days	1,000	914
Interest coverage	x	1.8	2.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.4	7.6
Return on equity	%	5.8	6.6
Return on capital employed	%	18.5	18.4

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

ARIES AGRO Share Price Performance

Over the last one year, ARIES AGRO share price has moved up from Rs 137.1 to Rs 178.1, registering a gain of Rs 41.0 or around 29.9%.

Overall, the S&P BSE SENSEX is up 11.1% over the year.

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