MRS BECTORS FOOD 2022-23 Annual Report Analysis

Sun, 24 Sep

MRS BECTORS FOOD 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.

MRS BECTORS FOOD Income Statement Analysis

• Operating income during the year rose 37.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.9% in FY23 as against 12.4% in FY22.
• Depreciation charges increased by 15.8% and finance costs increased by 79.7% YoY, respectively.
• Other income grew by 91.6% YoY.
• Net profit for the year grew by 57.6% YoY.
• Net profit margins during the year grew from 5.8% in FY22 to 6.6% in FY23.

MRS BECTORS FOOD Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,882	13,621	37.8%
Other income	Rs m	63	120	91.6%
Total Revenues	Rs m	9,944	13,742	38.2%
Gross profit	Rs m	1,228	1,752	42.7%
Depreciation	Rs m	460	533	15.8%
Interest	Rs m	74	133	79.7%
Profit before tax	Rs m	757	1,207	59.4%
Tax	Rs m	186	306	64.8%
Profit after tax	Rs m	571	901	57.6%
Gross profit margin	%	12.4	12.9
Effective tax rate	%	24.5	25.4
Net profit margin	%	5.8	6.6

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MRS BECTORS FOOD Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 22.6%.
• Long-term debt stood at Rs 940 million as compared to Rs 880 million during FY22, a growth of 6.8%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 20% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 15%.

MRS BECTORS FOOD Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,689	5,443	16.1
Current Liabilities	Rs m	1,343	1,647	22.6
Long-term Debt	Rs m	880	940	6.8
Total Liabilities	Rs m	7,222	8,314	15.1
Current assets	Rs m	2,759	2,941	6.6
Fixed Assets	Rs m	4,463	5,373	20.4
Total Assets	Rs m	7,222	8,314	15.1

MRS BECTORS FOOD Cash Flow Statement Analysis

• MRS BECTORS FOOD's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 94.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 167.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -366 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -235 million from the Rs -23 million net cash flows seen during FY22.

MRS BECTORS FOOD 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	843	1,641	94.7%
Cash Flow from Investing Activities	Rs m	-565	-1,510	-
Cash Flow from Financing Activities	Rs m	-300	-366	-
Net Cash Flow	Rs m	-23	-235	-

Current Valuations for MRS BECTORS FOOD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.3, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 987.8, stands at 51.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.7 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 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	168.0	231.6
TTM Earnings per share	Rs	9.7	15.3
Diluted earnings per share	Rs	9.7	15.3
Price to Cash Flow	x	16.0	16.8
TTM P/E ratio	x	28.9	51.7
Price / Book Value ratio	x	4.7	4.4
Market Cap	Rs m	21,854	24,092
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for MRS BECTORS FOOD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 2.1x 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 10.1x during FY23, from 11.3x 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 16.5% during FY23, from 12.2% 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 21.0% during FY23, from 14.9% 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 12.4% during FY23, from 8.9% 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	2.1	1.8
Debtors’ Days	Days	28	24
Interest coverage	x	11.3	10.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	8.9	12.4
Return on equity	%	12.2	16.5
Return on capital employed	%	14.9	21.0

To see how MRS BECTORS FOOD has performed over the last 5 years, please visit here.

MRS BECTORS FOOD Share Price Performance

Over the last one year, MRS BECTORS FOOD share price has moved up from Rs 356.2 to Rs 987.8, registering a gain of Rs 631.6 or around 177.3%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for MRS BECTORS FOOD and quarterly results for MRS BECTORS FOOD)