TATA COFFEE 2022-23 Annual Report Analysis

Wed, 10 May

TATA COFFEE 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.

TATA COFFEE Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.7% in FY23 as against 17.5% in FY22.
• Depreciation charges increased by 6.0% and finance costs increased by 46.9% YoY, respectively.
• Other income grew by 14.3% YoY.
• Net profit for the year grew by 37.6% YoY.
• Net profit margins during the year grew from 9.9% in FY22 to 11.3% in FY23.

TATA COFFEE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	23,635	28,502	20.6%
Other income	Rs m	257	294	14.3%
Total Revenues	Rs m	23,892	28,796	20.5%
Gross profit	Rs m	4,128	5,322	28.9%
Depreciation	Rs m	810	858	6.0%
Interest	Rs m	465	683	46.9%
Profit before tax	Rs m	3,111	4,076	31.0%
Tax	Rs m	777	864	11.2%
Profit after tax	Rs m	2,334	3,212	37.6%
Gross profit margin	%	17.5	18.7
Effective tax rate	%	25.0	21.2
Net profit margin	%	9.9	11.3

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TATA COFFEE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 11.7%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY22, a fall of 11.4%.
• Current assets rose 17% and stood at Rs 14 billion, while fixed assets rose 7% and stood at Rs 27 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 41 billion as against Rs 37 billion during FY22, thereby witnessing a growth of 10%.

TATA COFFEE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,183	17,933	18.1
Current Liabilities	Rs m	8,893	9,932	11.7
Long-term Debt	Rs m	5,052	4,476	-11.4
Total Liabilities	Rs m	36,887	40,595	10.1
Current assets	Rs m	11,990	14,031	17.0
Fixed Assets	Rs m	24,892	26,552	6.7
Total Assets	Rs m	36,887	40,595	10.1

TATA COFFEE Cash Flow Statement Analysis

• TATA COFFEE's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 104.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -168 million, an improvement of 108.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 21% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 497 million from the Rs -2 billion net cash flows seen during FY22.

TATA COFFEE 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	1,433	2,928	104.3%
Cash Flow from Investing Activities	Rs m	-81	-168	-
Cash Flow from Financing Activities	Rs m	-2,965	-2,329	-
Net Cash Flow	Rs m	-1,575	497	-

Current Valuations for TATA COFFEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 229.5, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 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	126.5	152.6
TTM Earnings per share	Rs	12.5	17.2
Diluted earnings per share	Rs	12.5	17.2
Price to Cash Flow	x	12.9	10.1
TTM P/E ratio	x	17.3	13.3
Price / Book Value ratio	x	2.3	2.3
Market Cap	Rs m	34,347	41,099
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for TATA COFFEE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 7.0x during FY23, from 7.7x 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 17.9% during FY23, from 15.4% 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 21.2% during FY23, from 17.7% 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 9.6% during FY23, from 7.6% 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	1.3	1.4
Debtors’ Days	Days	453	272
Interest coverage	x	7.7	7.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.6	9.6
Return on equity	%	15.4	17.9
Return on capital employed	%	17.7	21.2

To see how TATA COFFEE has performed over the last 5 years, please visit here.

TATA COFFEE Share Price Performance

Over the last one year, TATA COFFEE share price has moved up from Rs 200.5 to Rs 229.5, registering a gain of Rs 29.1 or around 14.5%.

Overall, the S&P BSE SENSEX is up 13.6% over the year.

(To know more, check out historical annual results for TATA COFFEE and quarterly results for TATA COFFEE)