BEST AGROLIFE 2022-23 Annual Report Analysis

Fri, 31 Mar

BEST AGROLIFE 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.

BEST AGROLIFE Income Statement Analysis

• Operating income during the year rose 44.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 89.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY23 as against 13.7% in FY22.
• Depreciation charges increased by 107.0% and finance costs increased by 157.5% YoY, respectively.
• Other income grew by 46.4% YoY.
• Net profit for the year grew by 83.4% YoY.
• Net profit margins during the year grew from 8.7% in FY22 to 11.0% in FY23.

BEST AGROLIFE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,108	17,457	44.2%
Other income	Rs m	18	26	46.4%
Total Revenues	Rs m	12,126	17,483	44.2%
Gross profit	Rs m	1,658	3,137	89.2%
Depreciation	Rs m	118	245	107.0%
Interest	Rs m	151	389	157.5%
Profit before tax	Rs m	1,407	2,529	79.8%
Tax	Rs m	359	608	69.2%
Profit after tax	Rs m	1,048	1,921	83.4%
Gross profit margin	%	13.7	18.0
Effective tax rate	%	25.5	24.0
Net profit margin	%	8.7	11.0

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BEST AGROLIFE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 46.3%.
• Long-term debt down at Rs 340 million as compared to Rs 486 million during FY22, a fall of 29.9%.
• Current assets rose 47% and stood at Rs 12 billion, while fixed assets rose 44% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 46%.

BEST AGROLIFE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,299	5,273	59.8
Current Liabilities	Rs m	6,179	9,037	46.3
Long-term Debt	Rs m	486	340	-29.9
Total Liabilities	Rs m	10,168	14,868	46.2
Current assets	Rs m	8,297	12,175	46.7
Fixed Assets	Rs m	1,871	2,693	43.9
Total Assets	Rs m	10,168	14,868	46.2

BEST AGROLIFE Cash Flow Statement Analysis

• BEST AGROLIFE's cash flow from operating activities (CFO) during FY23 stood at Rs -2 billion, an improvement of 201.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -190 million, an improvement of 28.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 270% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 487 million from the Rs -77 million net cash flows seen during FY22.

BEST AGROLIFE 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	-598	-1,805	-
Cash Flow from Investing Activities	Rs m	-148	-190	-
Cash Flow from Financing Activities	Rs m	670	2,482	270.5%
Net Cash Flow	Rs m	-77	487	-

Current Valuations for BEST AGROLIFE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.3, an improvement from the EPS of Rs 44.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,024.0, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.9 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	512.2	738.4
TTM Earnings per share	Rs	44.3	81.3
Diluted earnings per share	Rs	44.3	81.3
Price to Cash Flow	x	18.2	13.9
TTM P/E ratio	x	20.2	12.6
Price / Book Value ratio	x	5.7	5.7
Market Cap	Rs m	18,948	30,057
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for BEST AGROLIFE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 7.5x during FY23, from 10.3x 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 36.4% during FY23, from 31.8% 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 improved and stood at 52.0% during FY23, from 41.1% 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 15.5% during FY23, from 11.8% 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	1.3	1.3
Debtors’ Days	Days	772	729
Interest coverage	x	10.3	7.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.8	15.5
Return on equity	%	31.8	36.4
Return on capital employed	%	41.1	52.0

To see how BEST AGROLIFE has performed over the last 5 years, please visit here.

BEST AGROLIFE Share Price Performance

Over the last one year, BEST AGROLIFE share price has moved up from Rs 895.5 to Rs 1,024.0, registering a gain of Rs 128.5 or around 14.3%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for BEST AGROLIFE and quarterly results for BEST AGROLIFE)