BAJAJ HIND. SUGAR 2022-23 Annual Report Analysis

Tue, 13 Jun

BAJAJ HIND. SUGAR 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.

BAJAJ HIND. SUGAR Income Statement Analysis

• Operating income during the year rose 13.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 59.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.1% in FY23 as against 3.0% in FY22.
• Depreciation charges decreased by 0.7% and finance costs decreased by 17.3% YoY, respectively.
• Other income declined by 29.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.8% in FY22 to 2.1% in FY23.

BAJAJ HIND. SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	55,757	63,380	13.7%
Other income	Rs m	319	225	-29.4%
Total Revenues	Rs m	56,076	63,606	13.4%
Gross profit	Rs m	1,652	2,626	59.0%
Depreciation	Rs m	2,147	2,132	-0.7%
Interest	Rs m	2,540	2,101	-17.3%
Profit before tax	Rs m	-2,715	-1,382	NA
Tax	Rs m	-40	-34	NA
Profit after tax	Rs m	-2,675	-1,347	NA
Gross profit margin	%	3.0	4.1
Effective tax rate	%	1.5	2.5
Net profit margin	%	-4.8	-2.1

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BAJAJ HIND. SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 62 billion as compared to Rs 59 billion in FY22, thereby witnessing an increase of 5.1%.
• Long-term debt down at Rs 39 billion as compared to Rs 42 billion during FY22, a fall of 9.3%.
• Current assets fell 16% and stood at Rs 35 billion, while fixed assets rose 40% and stood at Rs 125 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 159 billion as against Rs 131 billion during FY22, thereby witnessing a growth of 22%.

BAJAJ HIND. SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	22,591	44,244	95.8
Current Liabilities	Rs m	59,342	62,365	5.1
Long-term Debt	Rs m	42,438	38,512	-9.3
Total Liabilities	Rs m	130,568	159,460	22.1
Current assets	Rs m	41,730	34,891	-16.4
Fixed Assets	Rs m	88,838	124,569	40.2
Total Assets	Rs m	130,568	159,460	22.1

BAJAJ HIND. SUGAR Cash Flow Statement Analysis

• BAJAJ HIND. SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 28.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 123 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -286 million from the Rs -221 million net cash flows seen during FY22.

BAJAJ HIND. SUGAR 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	6,191	7,923	28.0%
Cash Flow from Investing Activities	Rs m	132	123	-6.2%
Cash Flow from Financing Activities	Rs m	-6,543	-8,332	-
Net Cash Flow	Rs m	-221	-286	-

Current Valuations for BAJAJ HIND. SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.1, an improvement from the EPS of Rs -2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.9, stands at -15.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 24.5 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	44.8	50.9
TTM Earnings per share	Rs	-2.1	-1.1
Diluted earnings per share	Rs	-2.1	-1.1
Price to Cash Flow	x	-34.3	24.5
TTM P/E ratio	x	-6.8	-15.0
Price / Book Value ratio	x	0.9	0.4
Market Cap	Rs m	19,209	19,258
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ HIND. SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.7x 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 0.3x during FY23, from -0.1x 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 -3.0% during FY23, from -11.8% 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 improved and stood at 0.9% during FY23, from -0.3% 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 0.5% during FY23, from -0.1% 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	0.7	0.6
Debtors’ Days	Days	1	1
Interest coverage	x	-0.1	0.3
Debt to equity ratio	x	1.9	0.9
Return on assets	%	-0.1	0.5
Return on equity	%	-11.8	-3.0
Return on capital employed	%	-0.3	0.9

To see how BAJAJ HIND. SUGAR has performed over the last 5 years, please visit here.

BAJAJ HIND. SUGAR Share Price Performance

Over the last one year, BAJAJ HIND. SUGAR share price has moved up from Rs 13.3 to Rs 15.9, registering a gain of Rs 2.5 or around 18.8%.

Overall, the S&P BSE SENSEX is up 14.0% over the year.

(To know more, check out historical annual results for BAJAJ HIND. SUGAR and quarterly results for BAJAJ HIND. SUGAR)