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ADANI WILMAR 2022-23 Annual Report Analysis

Wed, 28 Jun

ADANI WILMAR 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.

ADANI WILMAR Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.9% in FY23 as against 3.2% in FY22.
• Depreciation charges increased by 3.3% and finance costs increased by 34.8% YoY, respectively.
• Other income grew by 48.9% YoY.
• Net profit for the year declined by 21.6% YoY.
• Net profit margins during the year declined from 1.4% in FY22 to 1.1% in FY23.

ADANI WILMAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	542,136	552,625	1.9%
Other income	Rs m	1,723	2,567	48.9%
Total Revenues	Rs m	543,859	555,192	2.1%
Gross profit	Rs m	17,363	16,162	-6.9%
Depreciation	Rs m	3,091	3,193	3.3%
Interest	Rs m	5,408	7,289	34.8%
Profit before tax	Rs m	10,588	8,247	-22.1%
Tax	Rs m	2,844	2,174	-23.6%
Profit after tax	Rs m	7,744	6,072	-21.6%
Gross profit margin	%	3.2	2.9
Effective tax rate	%	26.9	26.4
Net profit margin	%	1.4	1.1

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ADANI WILMAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 106 billion as compared to Rs 128 billion in FY22, thereby witnessing an decrease of -17.5%.
• Current assets fell 14% and stood at Rs 137 billion, while fixed assets rose 10% and stood at Rs 59 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 196 billion as against Rs 213 billion during FY22, thereby witnessing a fall of 8%.

ADANI WILMAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	76,064	79,883	5.0
Current Liabilities	Rs m	128,130	105,769	-17.5
Long-term Debt	Rs m	450	0	-100.0
Total Liabilities	Rs m	213,173	196,188	-8.0
Current assets	Rs m	159,261	137,022	-14.0
Fixed Assets	Rs m	53,912	59,115	9.7
Total Assets	Rs m	213,173	196,188	-8.0

ADANI WILMAR Cash Flow Statement Analysis

• ADANI WILMAR's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 698 million net cash flows seen during FY22.

ADANI WILMAR 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	11,600	5,139	-55.7%
Cash Flow from Investing Activities	Rs m	-38,612	5,992	-
Cash Flow from Financing Activities	Rs m	26,915	-9,195	-
Net Cash Flow	Rs m	698	1,902	172.5%

Current Valuations for ADANI WILMAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.5, stands at 95.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 84.5 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	417.1	425.2
TTM Earnings per share	Rs	6.0	4.7
Diluted earnings per share	Rs	6.0	4.7
Price to Cash Flow	x	62.1	84.5
TTM P/E ratio	x	86.9	95.4
Price / Book Value ratio	x	6.3	9.8
Market Cap	Rs m	479,906	783,284
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI WILMAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x 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 2.1x during FY23, from 3.0x 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 declined and down at 7.6% during FY23, from 10.2% 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 19.4% during FY23, from 20.9% 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 6.8% during FY23, from 6.2% 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	1.2	1.3
Debtors’ Days	Days	1	1
Interest coverage	x	3.0	2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	6.8
Return on equity	%	10.2	7.6
Return on capital employed	%	20.9	19.4

To see how ADANI WILMAR has performed over the last 5 years, please visit here.

ADANI WILMAR Share Price Performance

Over the last one year, ADANI WILMAR share price has moved down from Rs 593.3 to Rs 406.5, registering a loss of Rs 186.8 or around 31.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,493.6 (down 0.0%). Over the last one year it has moved up from 13,932.0 to 18,493.6, a gain of 4,562 points (up 32.7%).

Overall, the S&P BSE SENSEX is up 19.3% over the year.

(To know more, check out historical annual results for ADANI WILMAR and quarterly results for ADANI WILMAR)