AVANTI FEEDS 2022-23 Annual Report Analysis

Fri, 21 Jul

AVANTI FEEDS 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.

AVANTI FEEDS Income Statement Analysis

• Operating income during the year rose 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.5% in FY23 as against 5.7% in FY22.
• Depreciation charges increased by 4.4% and finance costs increased by 5.6% YoY, respectively.
• Other income grew by 12.7% YoY.
• Net profit for the year grew by 27.3% YoY.
• Net profit margins during the year grew from 4.9% in FY22 to 6.1% in FY23.

AVANTI FEEDS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	50,360	50,870	1.0%
Other income	Rs m	817	920	12.7%
Total Revenues	Rs m	51,176	51,790	1.2%
Gross profit	Rs m	2,867	3,813	33.0%
Depreciation	Rs m	408	426	4.4%
Interest	Rs m	37	39	5.6%
Profit before tax	Rs m	3,239	4,268	31.8%
Tax	Rs m	787	1,145	45.6%
Profit after tax	Rs m	2,452	3,123	27.3%
Gross profit margin	%	5.7	7.5
Effective tax rate	%	24.3	26.8
Net profit margin	%	4.9	6.1

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AVANTI FEEDS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -7.9%.
• Current assets rose 9% and stood at Rs 22 billion, while fixed assets rose 8% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 25 billion during FY22, thereby witnessing a growth of 9%.

AVANTI FEEDS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,954	20,955	10.6
Current Liabilities	Rs m	3,510	3,231	-7.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	25,146	27,346	8.8
Current assets	Rs m	20,289	22,107	9.0
Fixed Assets	Rs m	4,856	5,239	7.9
Total Assets	Rs m	25,146	27,346	8.8

AVANTI FEEDS Cash Flow Statement Analysis

• AVANTI FEEDS'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 -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -655 million, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -300 million from the Rs 184 million net cash flows seen during FY22.

AVANTI FEEDS 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	-2,124	4,512	-
Cash Flow from Investing Activities	Rs m	2,990	-4,158	-
Cash Flow from Financing Activities	Rs m	-683	-655	-
Net Cash Flow	Rs m	184	-300	-

Current Valuations for AVANTI FEEDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.9, an improvement from the EPS of Rs 18.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 403.2, stands at 17.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.3 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	369.6	373.4
TTM Earnings per share	Rs	18.0	22.9
Diluted earnings per share	Rs	18.0	22.9
Price to Cash Flow	x	19.7	16.3
TTM P/E ratio	x	22.1	17.6
Price / Book Value ratio	x	3.9	2.8
Market Cap	Rs m	73,934	57,843
Dividends per share (Unadj.)	Rs	6.3	6.3

Ratio Analysis for AVANTI FEEDS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.8x during FY23, from 5.8x 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 110.6x during FY23, from 88.9x 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 14.9% during FY23, from 12.9% 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 20.6% during FY23, from 17.3% 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 11.6% during FY23, from 9.9% 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	5.8	6.8
Debtors’ Days	Days	82	87
Interest coverage	x	88.9	110.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.9	11.6
Return on equity	%	12.9	14.9
Return on capital employed	%	17.3	20.6

To see how AVANTI FEEDS has performed over the last 5 years, please visit here.

AVANTI FEEDS Share Price Performance

Over the last one year, AVANTI FEEDS share price has moved down from Rs 451.2 to Rs 403.2, registering a loss of Rs 48.1 or around 10.6%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for AVANTI FEEDS and quarterly results for AVANTI FEEDS)