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APEX FROZEN FOODS 2022-23 Annual Report Analysis

Tue, 3 Oct

APEX FROZEN FOODS 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.

APEX FROZEN FOODS Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY23 as against 9.3% in FY22.
• Depreciation charges increased by 4.9% and finance costs decreased by 15.3% YoY, respectively.
• Other income declined by 70.0% YoY.
• Net profit for the year declined by 12.7% YoY.
• Net profit margins during the year declined from 4.4% in FY22 to 3.4% in FY23.

APEX FROZEN FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,262	10,703	15.6%
Other income	Rs m	57	17	-70.0%
Total Revenues	Rs m	9,319	10,720	15.0%
Gross profit	Rs m	864	830	-3.8%
Depreciation	Rs m	185	194	4.9%
Interest	Rs m	174	147	-15.3%
Profit before tax	Rs m	562	506	-9.9%
Tax	Rs m	151	148	-2.5%
Profit after tax	Rs m	411	359	-12.7%
Gross profit margin	%	9.3	7.8
Effective tax rate	%	26.9	29.1
Net profit margin	%	4.4	3.4

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APEX FROZEN FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -34.8%.
• Long-term debt down at Rs 28 million as compared to Rs 291 million during FY22, a fall of 90.4%.
• Current assets fell 17% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 7 billion during FY22, thereby witnessing a fall of 9%.

APEX FROZEN FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,684	4,900	4.6
Current Liabilities	Rs m	1,745	1,138	-34.8
Long-term Debt	Rs m	291	28	-90.4
Total Liabilities	Rs m	6,777	6,138	-9.4
Current assets	Rs m	4,121	3,400	-17.5
Fixed Assets	Rs m	2,656	2,738	3.1
Total Assets	Rs m	6,777	6,138	-9.4

APEX FROZEN FOODS Cash Flow Statement Analysis

• APEX FROZEN FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 241.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -218 million, an improvement of 108.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -987 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs -17 million net cash flows seen during FY22.

APEX FROZEN FOODS 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	355	1,212	241.0%
Cash Flow from Investing Activities	Rs m	-105	-218	-
Cash Flow from Financing Activities	Rs m	-267	-987	-
Net Cash Flow	Rs m	-17	7	-

Current Valuations for APEX FROZEN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an decline from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 224.8, stands at 33.5 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	296.4	342.5
TTM Earnings per share	Rs	13.1	11.5
Diluted earnings per share	Rs	13.1	11.5
Price to Cash Flow	x	14.6	15.5
TTM P/E ratio	x	21.2	33.5
Price / Book Value ratio	x	2.1	1.8
Market Cap	Rs m	9,925	8,594
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for APEX FROZEN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.4x 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 4.4x during FY23, from 4.2x 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 7.3% during FY23, from 8.8% 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 declined and down at 13.3% during FY23, from 14.8% 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 declined and down at 8.2% during FY23, from 8.6% 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	2.4	3.0
Debtors’ Days	Days	520	382
Interest coverage	x	4.2	4.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.6	8.2
Return on equity	%	8.8	7.3
Return on capital employed	%	14.8	13.3

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 304.6 to Rs 224.8, registering a loss of Rs 79.8 or around 26.2%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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