AURO LAB. 2022-23 Annual Report Analysis

Wed, 11 Oct

AURO LAB. 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.

AURO LAB. Income Statement Analysis

• Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 9.1% in FY22.
• Depreciation charges increased by 5.6% and finance costs decreased by 1.5% YoY, respectively.
• Other income declined by 13.9% YoY.
• Net profit for the year declined by 14.2% YoY.
• Net profit margins during the year declined from 5.6% in FY22 to 4.6% in FY23.

AURO LAB. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	509	529	4.0%
Other income	Rs m	11	9	-13.9%
Total Revenues	Rs m	520	538	3.6%
Gross profit	Rs m	46	44	-5.0%
Depreciation	Rs m	10	11	5.6%
Interest	Rs m	8	8	-1.5%
Profit before tax	Rs m	39	34	-11.0%
Tax	Rs m	10	10	-2.4%
Profit after tax	Rs m	28	24	-14.2%
Gross profit margin	%	9.1	8.3
Effective tax rate	%	26.6	29.1
Net profit margin	%	5.6	4.6

Dear Reader: If You Invest in Midcap Stocks, this is for You

AURO LAB. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 181 million as compared to Rs 201 million in FY22, thereby witnessing an decrease of -9.9%.
• Long-term debt stood at Rs 20 million as compared to Rs 17 million during FY22, a growth of 21.1%.
• Current assets fell 5% and stood at Rs 354 million, while fixed assets rose 17% and stood at Rs 206 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 560 million as against Rs 550 million during FY22, thereby witnessing a growth of 2%.

AURO LAB. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	315	342	8.5
Current Liabilities	Rs m	201	181	-9.9
Long-term Debt	Rs m	17	20	21.1
Total Liabilities	Rs m	550	560	1.9
Current assets	Rs m	373	354	-5.3
Fixed Assets	Rs m	176	206	17.1
Total Assets	Rs m	550	560	1.9

AURO LAB. Cash Flow Statement Analysis

• AURO LAB.'s cash flow from operating activities (CFO) during FY23 stood at Rs 33 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -51 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -82 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -100 million from the Rs -21 million net cash flows seen during FY22.

AURO LAB. 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	-66	33	-
Cash Flow from Investing Activities	Rs m	-53	-51	-
Cash Flow from Financing Activities	Rs m	98	-82	-
Net Cash Flow	Rs m	-21	-100	-

Current Valuations for AURO LAB.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an decline from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.8, stands at 24.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	81.6	84.9
TTM Earnings per share	Rs	4.6	3.9
Diluted earnings per share	Rs	4.6	3.9
Price to Cash Flow	x	16.2	14.9
TTM P/E ratio	x	22.0	24.1
Price / Book Value ratio	x	2.7	1.5
Market Cap	Rs m	852	525
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AURO LAB.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 deteriorated and stood at 5.2x during FY23, from 5.7x 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 7.1% during FY23, from 9.0% 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 11.8% 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 5.8% during FY23, from 6.7% 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	1.9	2.0
Debtors’ Days	Days	97,685	85,599
Interest coverage	x	5.7	5.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.7	5.8
Return on equity	%	9.0	7.1
Return on capital employed	%	14.2	11.8

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

AURO LAB. Share Price Performance

Over the last one year, AURO LAB. share price has moved up from Rs 78.0 to Rs 118.8, registering a gain of Rs 40.8 or around 52.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,152.0 (up 0.5%). Over the last one year it has moved up from 23,118.4 to 28,152.0, a gain of 5,034 points (up 21.8%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

(To know more, check out historical annual results for AURO LAB. and quarterly results for AURO LAB.)