E.I.D. PARRY 2022-23 Annual Report Analysis

Mon, 17 Jul

E.I.D. PARRY 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.

E.I.D. PARRY Income Statement Analysis

• Operating income during the year rose 49.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY23 as against 10.0% in FY22.
• Depreciation charges increased by 12.7% and finance costs increased by 96.3% YoY, respectively.
• Other income declined by 15.6% YoY.
• Net profit for the year grew by 16.1% YoY.
• Net profit margins during the year declined from 6.7% in FY22 to 5.2% in FY23.

E.I.D. PARRY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	235,211	352,438	49.8%
Other income	Rs m	2,531	2,137	-15.6%
Total Revenues	Rs m	237,742	354,575	49.1%
Gross profit	Rs m	23,619	30,252	28.1%
Depreciation	Rs m	3,340	3,765	12.7%
Interest	Rs m	1,519	2,982	96.3%
Profit before tax	Rs m	21,291	25,643	20.4%
Tax	Rs m	5,554	7,365	32.6%
Profit after tax	Rs m	15,737	18,277	16.1%
Gross profit margin	%	10.0	8.6
Effective tax rate	%	26.1	28.7
Net profit margin	%	6.7	5.2

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

E.I.D. PARRY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 85 billion as compared to Rs 71 billion in FY22, thereby witnessing an increase of 19.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 794 million during FY22, a growth of 39.6%.
• Current assets rose 17% and stood at Rs 126 billion, while fixed assets rose 21% and stood at Rs 62 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 188 billion as against Rs 159 billion during FY22, thereby witnessing a growth of 18%.

E.I.D. PARRY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	53,167	60,727	14.2
Current Liabilities	Rs m	71,076	84,710	19.2
Long-term Debt	Rs m	794	1,109	39.6
Total Liabilities	Rs m	159,426	187,785	17.8
Current assets	Rs m	107,953	125,931	16.7
Fixed Assets	Rs m	51,032	61,853	21.2
Total Assets	Rs m	159,426	187,785	17.8

E.I.D. PARRY Cash Flow Statement Analysis

• E.I.D. PARRY's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 billion from the Rs 472 million net cash flows seen during FY22.

E.I.D. PARRY 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	22,784	3,586	-84.3%
Cash Flow from Investing Activities	Rs m	-17,331	4,855	-
Cash Flow from Financing Activities	Rs m	-4,990	-1,843	-
Net Cash Flow	Rs m	472	6,614	1,301.9%

Current Valuations for E.I.D. PARRY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 103.0, an improvement from the EPS of Rs 88.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 463.2, stands at 4.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	1,326.0	1,985.3
TTM Earnings per share	Rs	88.7	103.0
Diluted earnings per share	Rs	88.7	103.0
Price to Cash Flow	x	4.2	4.5
TTM P/E ratio	x	5.1	4.4
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	77,784	98,220
Dividends per share (Unadj.)	Rs	11.0	9.5

Ratio Analysis for E.I.D. PARRY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 deteriorated and stood at 9.6x during FY23, from 15.0x 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 30.1% during FY23, from 29.6% 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 46.3% during FY23, from 42.3% 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 11.3% during FY23, from 10.8% 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	1.5
Debtors’ Days	Days	89	84
Interest coverage	x	15.0	9.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	11.3
Return on equity	%	29.6	30.1
Return on capital employed	%	42.3	46.3

To see how E.I.D. PARRY has performed over the last 5 years, please visit here.

E.I.D. PARRY Share Price Performance

Over the last one year, E.I.D. PARRY share price has moved down from Rs 552.3 to Rs 463.2, registering a loss of Rs 89.1 or around 16.1%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for E.I.D. PARRY and quarterly results for E.I.D. PARRY)