AVRO INDIA 2022-23 Annual Report Analysis

Tue, 10 Oct

AVRO INDIA 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.

AVRO INDIA Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY23 as against 8.0% in FY22.
• Depreciation charges increased by 41.8% and finance costs increased by 128.8% YoY, respectively.
• Other income grew by 394.5% YoY.
• Net profit for the year grew by 39.5% YoY.
• Net profit margins during the year grew from 4.6% in FY22 to 5.2% in FY23.

AVRO INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	647	800	23.6%
Other income	Rs m	5	23	394.5%
Total Revenues	Rs m	652	824	26.3%
Gross profit	Rs m	52	63	21.7%
Depreciation	Rs m	13	18	41.8%
Interest	Rs m	4	10	128.8%
Profit before tax	Rs m	39	58	48.5%
Tax	Rs m	9	17	76.7%
Profit after tax	Rs m	30	42	39.5%
Gross profit margin	%	8.0	7.8
Effective tax rate	%	24.2	28.8
Net profit margin	%	4.6	5.2

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

AVRO INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 146 million as compared to Rs 160 million in FY22, thereby witnessing an decrease of -8.4%.
• Long-term debt stood at Rs 28 million as compared to Rs 12 million during FY22, a growth of 141.1%.
• Current assets rose 6% and stood at Rs 271 million, while fixed assets rose 23% and stood at Rs 153 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 424 million as against Rs 379 million during FY22, thereby witnessing a growth of 12%.

AVRO INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	207	248	20.1
Current Liabilities	Rs m	160	146	-8.4
Long-term Debt	Rs m	12	28	141.1
Total Liabilities	Rs m	379	424	11.9
Current assets	Rs m	255	271	6.3
Fixed Assets	Rs m	124	153	23.4
Total Assets	Rs m	379	424	11.9

AVRO INDIA Cash Flow Statement Analysis

• AVRO INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 29 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -57 million, an improvement of 131.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 29 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.

AVRO INDIA 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	-6	29	-
Cash Flow from Investing Activities	Rs m	-25	-57	-
Cash Flow from Financing Activities	Rs m	31	29	-6.0%
Net Cash Flow	Rs m	1	1	66.1%

Current Valuations for AVRO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an improvement from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.0, stands at 26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 20.6 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	64.2	79.3
TTM Earnings per share	Rs	2.9	4.1
Diluted earnings per share	Rs	3.0	4.1
Price to Cash Flow	x	0.0	20.6
TTM P/E ratio	x	0.0	26.7
Price / Book Value ratio	x	3.7	5.0
Market Cap	Rs m	766	1,233
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AVRO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 7.0x during FY23, from 10.3x 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 16.7% during FY23, from 14.4% 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 24.6% during FY23, from 19.9% 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 12.1% during FY23, from 9.0% 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	1.6	1.8
Debtors’ Days	Days	1,051	759
Interest coverage	x	10.3	7.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.0	12.1
Return on equity	%	14.4	16.7
Return on capital employed	%	19.9	24.6

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

AVRO INDIA Share Price Performance

Over the last one year, AVRO INDIA share price has moved down from Rs 126.3 to Rs 109.0, registering a loss of Rs 17.3 or around 13.7%.

Overall, the S&P BSE SENSEX is up 13.5% over the year.

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