APEX FROZEN FOODS 2021-22 Annual Report Analysis

Tue, 5 Jul

APEX FROZEN FOODS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

APEX FROZEN FOODS Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.7% in FY22 as against 11.1% in FY21.
• Depreciation charges decreased by 15.7% and finance costs increased by 9.2% YoY, respectively.
• Other income grew by 70.0% YoY.
• Net profit for the year declined by 7.2% YoY.
• Net profit margins during the year declined from 5.4% in FY21 to 4.5% in FY22.

APEX FROZEN FOODS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	8,185	9,142	11.7%
Other income	Rs m	75	128	70.0%
Total Revenues	Rs m	8,260	9,270	12.2%
Gross profit	Rs m	909	793	-12.8%
Depreciation	Rs m	219	185	-15.7%
Interest	Rs m	159	174	9.2%
Profit before tax	Rs m	606	562	-7.2%
Tax	Rs m	163	151	-7.3%
Profit after tax	Rs m	443	411	-7.2%
Gross profit margin	%	11.1	8.7
Effective tax rate	%	26.9	26.9
Net profit margin	%	5.4	4.5

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APEX FROZEN FOODS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -7.5%.
• Long-term debt stood at Rs 291 million as compared to Rs 281 million during FY21, a growth of 3.8%.
• Current assets rose 8% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 4%.

APEX FROZEN FOODS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,398	4,754	8.1
Current Liabilities	Rs m	1,889	1,748	-7.5
Long-term Debt	Rs m	281	291	3.8
Total Liabilities	Rs m	6,545	6,780	3.6
Current assets	Rs m	3,860	4,175	8.2
Fixed Assets	Rs m	2,685	2,605	-2.9
Total Assets	Rs m	6,545	6,780	3.6

APEX FROZEN FOODS Cash Flow Statement Analysis

• APEX FROZEN FOODS's cash flow from operating activities (CFO) during FY22 stood at Rs 284 million, an improvement of 120.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -104 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -205 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -24 million from the Rs 27 million net cash flows seen during FY21.

APEX FROZEN FOODS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	129	284	120.0%
Cash Flow from Investing Activities	Rs m	-140	-104	-
Cash Flow from Financing Activities	Rs m	37	-205	-
Net Cash Flow	Rs m	27	-24	-

Current Valuations for APEX FROZEN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an decline from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 268.5, stands at 20.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	261.9	292.5
TTM Earnings per share	Rs	14.2	13.1
Diluted earnings per share	Rs	14.2	13.1
Price to Cash Flow	x	9.8	16.7
TTM P/E ratio	x	14.6	20.4
Price / Book Value ratio	x	1.8	2.1
Market Cap	Rs m	7,751	9,925
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for APEX FROZEN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY22, from 2.0x during FY21. 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 4.2x during FY22, from 4.8x during FY21. 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 8.6% during FY22, from 10.1% during FY22. 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 14.6% during FY22, from 16.4% during FY21. 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 8.6% during FY22, from 9.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.0	2.4
Debtors’ Days	Days	671	527
Interest coverage	x	4.8	4.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.2	8.6
Return on equity	%	10.1	8.6
Return on capital employed	%	16.4	14.6

To see how APEX FROZEN FOODS has performed over the last 5 years, please visit here.

APEX FROZEN FOODS Share Price Performance

Over the last one year, APEX FROZEN FOODS share price has moved down from Rs 395.8 to Rs 268.5, registering a loss of Rs 127.3 or around 32.2%.

Overall, the S&P BSE SENSEX is up 1.5% over the year.

(To know more, check out historical annual results for APEX FROZEN FOODS and quarterly results for APEX FROZEN FOODS)

Read: Latest Annual Report Analysis of APEX FROZEN FOODS