BARBEQUE NATION HOSPITALITY 2022-23 Annual Report Analysis

Thu, 14 Sep

BARBEQUE NATION HOSPITALITY 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.

BARBEQUE NATION HOSPITALITY Income Statement Analysis

• Operating income during the year rose 43.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY23 as against 15.6% in FY22.
• Depreciation charges increased by 13.9% and finance costs increased by 9.8% YoY, respectively.
• Other income declined by 69.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.9% in FY22 to 1.6% in FY23.

BARBEQUE NATION HOSPITALITY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,606	12,338	43.4%
Other income	Rs m	263	80	-69.5%
Total Revenues	Rs m	8,868	12,418	40.0%
Gross profit	Rs m	1,342	2,344	74.6%
Depreciation	Rs m	1,273	1,450	13.9%
Interest	Rs m	653	717	9.8%
Profit before tax	Rs m	-321	257	NA
Tax	Rs m	-69	66	NA
Profit after tax	Rs m	-252	191	NA
Gross profit margin	%	15.6	19.0
Effective tax rate	%	21.4	25.6
Net profit margin	%	-2.9	1.6

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BARBEQUE NATION HOSPITALITY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 20.3%.
• Long-term debt down at Rs 76 million as compared to Rs 144 million during FY22, a fall of 47.0%.
• Current assets fell 19% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 11%.

BARBEQUE NATION HOSPITALITY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,799	3,883	2.2
Current Liabilities	Rs m	1,917	2,306	20.3
Long-term Debt	Rs m	144	76	-47.0
Total Liabilities	Rs m	10,872	12,080	11.1
Current assets	Rs m	1,494	1,216	-18.6
Fixed Assets	Rs m	9,377	10,864	15.9
Total Assets	Rs m	10,872	12,080	11.1

BARBEQUE NATION HOSPITALITY Cash Flow Statement Analysis

• BARBEQUE NATION HOSPITALITY's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 280.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 68.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -428 million from the Rs -2 billion net cash flows seen during FY22.

BARBEQUE NATION HOSPITALITY 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	2,276	280.5%
Cash Flow from Investing Activities	Rs m	-902	-1,518	-
Cash Flow from Financing Activities	Rs m	-1,298	-1,186	-
Net Cash Flow	Rs m	-1,602	-428	-

Current Valuations for BARBEQUE NATION HOSPITALITY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs -6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 682.4, stands at -2,861.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 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	221.2	316.5
TTM Earnings per share	Rs	-6.5	4.9
Diluted earnings per share	Rs	-6.5	4.9
Price to Cash Flow	x	48.0	23.2
TTM P/E ratio	x	-194.5	-2,861.4
Price / Book Value ratio	x	12.4	9.8
Market Cap	Rs m	47,295	38,017
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BARBEQUE NATION HOSPITALITY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY23, from 0.8x 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 1.4x during FY23, from 0.5x 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 4.9% during FY23, from -6.6% 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 24.6% during FY23, from 8.4% 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 7.5% during FY23, from 3.7% 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	0.8	0.5
Debtors’ Days	Days	2	2
Interest coverage	x	0.5	1.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	7.5
Return on equity	%	-6.6	4.9
Return on capital employed	%	8.4	24.6

To see how BARBEQUE NATION HOSPITALITY has performed over the last 5 years, please visit here.

BARBEQUE NATION HOSPITALITY Share Price Performance

Over the last one year, BARBEQUE NATION HOSPITALITY share price has moved down from Rs 1,112.9 to Rs 682.4, registering a loss of Rs 430.5 or around 38.7%.

Overall, the S&P BSE SENSEX is up 12.2% over the year.

(To know more, check out historical annual results for BARBEQUE NATION HOSPITALITY and quarterly results for BARBEQUE NATION HOSPITALITY)