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LT FOODS 2022-23 Annual Report Analysis

Thu, 21 Sep

LT FOODS 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.

LT FOODS Income Statement Analysis

• Operating income during the year rose 27.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY23 as against 10.9% in FY22.
• Depreciation charges increased by 3.5% and finance costs increased by 19.5% YoY, respectively.
• Other income grew by 85.4% YoY.
• Net profit for the year grew by 36.7% YoY.
• Net profit margins during the year grew from 5.7% in FY22 to 6.1% in FY23.

LT FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	54,274	69,358	27.8%
Other income	Rs m	232	430	85.4%
Total Revenues	Rs m	54,506	69,788	28.0%
Gross profit	Rs m	5,917	7,286	23.1%
Depreciation	Rs m	1,226	1,269	3.5%
Interest	Rs m	687	821	19.5%
Profit before tax	Rs m	4,236	5,626	32.8%
Tax	Rs m	1,144	1,398	22.2%
Profit after tax	Rs m	3,092	4,228	36.7%
Gross profit margin	%	10.9	10.5
Effective tax rate	%	27.0	24.9
Net profit margin	%	5.7	6.1

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LT FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 20 billion as compared to Rs 18 billion in FY22, thereby witnessing an increase of 13.0%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY22, a growth of 31.1%.
• Current assets rose 25% and stood at Rs 39 billion, while fixed assets rose 15% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 53 billion as against Rs 43 billion during FY22, thereby witnessing a growth of 22%.

LT FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,976	27,571	38.0
Current Liabilities	Rs m	17,805	20,111	13.0
Long-term Debt	Rs m	1,990	2,609	31.1
Total Liabilities	Rs m	43,409	53,003	22.1
Current assets	Rs m	31,671	39,481	24.7
Fixed Assets	Rs m	11,737	13,521	15.2
Total Assets	Rs m	43,409	53,003	22.1

LT FOODS Cash Flow Statement Analysis

• LT FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 172.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 138% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs 152 million net cash flows seen during FY22.

LT FOODS 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	5,175	2,584	-50.1%
Cash Flow from Investing Activities	Rs m	-1,447	-3,946	-
Cash Flow from Financing Activities	Rs m	-3,576	1,363	-
Net Cash Flow	Rs m	152	1	-99.5%

Current Valuations for LT FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, 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 162.5, stands at 13.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	169.7	199.7
TTM Earnings per share	Rs	9.7	12.2
Diluted earnings per share	Rs	8.9	12.2
Price to Cash Flow	x	6.3	6.4
TTM P/E ratio	x	8.6	13.4
Price / Book Value ratio	x	1.2	1.3
Market Cap	Rs m	23,780	35,133
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for LT FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.8x 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 7.9x during FY23, from 7.2x 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 declined and down at 15.3% during FY23, from 15.5% 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 declined and down at 21.4% during FY23, from 22.4% 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 9.5% during FY23, from 8.7% 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	1.8	2.0
Debtors’ Days	Days	411	355
Interest coverage	x	7.2	7.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.7	9.5
Return on equity	%	15.5	15.3
Return on capital employed	%	22.4	21.4

To see how LT FOODS has performed over the last 5 years, please visit here.

LT FOODS Share Price Performance

Over the last one year, LT FOODS share price has moved up from Rs 108.4 to Rs 162.5, registering a gain of Rs 54.2 or around 50.0%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for LT FOODS and quarterly results for LT FOODS)