ARO GRANITE 2022-23 Annual Report Analysis

Mon, 14 Aug

ARO GRANITE 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.

ARO GRANITE Income Statement Analysis

• Operating income during the year fell 27.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY23 as against 13.4% in FY22.
• Depreciation charges decreased by 0.1% and finance costs increased by 61.1% YoY, respectively.
• Other income declined by 59.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.0% in FY22 to 3.5% in FY23.

ARO GRANITE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,247	1,639	-27.1%
Other income	Rs m	14	5	-59.9%
Total Revenues	Rs m	2,261	1,644	-27.3%
Gross profit	Rs m	301	191	-36.7%
Depreciation	Rs m	127	127	-0.1%
Interest	Rs m	79	128	61.1%
Profit before tax	Rs m	108	-59	NA
Tax	Rs m	19	-1	NA
Profit after tax	Rs m	89	-58	NA
Gross profit margin	%	13.4	11.6
Effective tax rate	%	17.4	2.0
Net profit margin	%	4.0	-3.5

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ARO GRANITE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 5.9%.
• Long-term debt down at Rs 602 million as compared to Rs 653 million during FY22, a fall of 7.8%.
• Current assets rose 3% and stood at Rs 3 billion, while fixed assets fell 5% and stood at Rs 2 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 fall of 0%.

ARO GRANITE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,964	1,906	-3.0
Current Liabilities	Rs m	1,755	1,860	5.9
Long-term Debt	Rs m	653	602	-7.8
Total Liabilities	Rs m	4,514	4,504	-0.2
Current assets	Rs m	2,782	2,862	2.9
Fixed Assets	Rs m	1,732	1,642	-5.2
Total Assets	Rs m	4,514	4,504	-0.2

ARO GRANITE Cash Flow Statement Analysis

• ARO GRANITE's cash flow from operating activities (CFO) during FY23 stood at Rs 140 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -145 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -36 million from the Rs -4 million net cash flows seen during FY22.

ARO GRANITE 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	-181	140	-
Cash Flow from Investing Activities	Rs m	-62	-30	-
Cash Flow from Financing Activities	Rs m	239	-145	-
Net Cash Flow	Rs m	-4	-36	-

Current Valuations for ARO GRANITE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.8, an decline from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 46.5, stands at -15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	146.9	107.1
TTM Earnings per share	Rs	5.8	-3.8
Diluted earnings per share	Rs	5.8	-3.8
Price to Cash Flow	x	3.9	11.0
TTM P/E ratio	x	9.4	-15.3
Price / Book Value ratio	x	0.5	0.4
Market Cap	Rs m	946	765
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARO GRANITE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 deteriorated and stood at 0.5x during FY23, from 2.4x 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 -3.0% during FY23, from 4.5% 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 declined and down at 2.7% during FY23, from 7.1% 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 1.6% during FY23, from 3.7% 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	1.5
Debtors’ Days	Days	1,187	1,370
Interest coverage	x	2.4	0.5
Debt to equity ratio	x	0.3	0.3
Return on assets	%	3.7	1.6
Return on equity	%	4.5	-3.0
Return on capital employed	%	7.1	2.7

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

ARO GRANITE Share Price Performance

Over the last one year, ARO GRANITE share price has moved up from Rs 44.8 to Rs 46.5, registering a gain of Rs 1.7 or around 3.8%.

Overall, the S&P BSE SENSEX is up 10.6% over the year.

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