WESTLIFE FOODWORLD 2022-23 Annual Report Analysis

Thu, 17 Aug

WESTLIFE FOODWORLD 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.

WESTLIFE FOODWORLD Income Statement Analysis

• Operating income during the year rose 44.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 97.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY23 as against 12.0% in FY22.
• Depreciation charges increased by 11.6% and finance costs increased by 12.2% YoY, respectively.
• Other income declined by 26.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.1% in FY22 to 4.9% in FY23.

WESTLIFE FOODWORLD Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,765	22,782	44.5%
Other income	Rs m	277	203	-26.7%
Total Revenues	Rs m	16,042	22,985	43.3%
Gross profit	Rs m	1,892	3,740	97.7%
Depreciation	Rs m	1,364	1,522	11.6%
Interest	Rs m	826	927	12.2%
Profit before tax	Rs m	-21	1,495	NA
Tax	Rs m	-4	379	NA
Profit after tax	Rs m	-17	1,116	NA
Gross profit margin	%	12.0	16.4
Effective tax rate	%	19.4	25.3
Net profit margin	%	-0.1	4.9

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WESTLIFE FOODWORLD Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 11.4%.
• Current assets rose 10% and stood at Rs 2 billion, while fixed assets rose 17% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 17%.

WESTLIFE FOODWORLD Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,596	5,659	23.1
Current Liabilities	Rs m	4,819	5,370	11.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,563	20,493	16.7
Current assets	Rs m	1,869	2,058	10.1
Fixed Assets	Rs m	15,694	18,435	17.5
Total Assets	Rs m	17,563	20,493	16.7

WESTLIFE FOODWORLD Cash Flow Statement Analysis

• WESTLIFE FOODWORLD'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 -3 billion, an improvement of 369.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -981 million, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -149 million from the Rs 123 million net cash flows seen during FY22.

WESTLIFE FOODWORLD 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	1,706	3,485	104.3%
Cash Flow from Investing Activities	Rs m	-565	-2,653	-
Cash Flow from Financing Activities	Rs m	-1,019	-981	-
Net Cash Flow	Rs m	123	-149	-

Current Valuations for WESTLIFE FOODWORLD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an improvement from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 924.6, stands at 123.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 25.5 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 36.0 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	101.2	146.1
TTM Earnings per share	Rs	-0.1	7.2
Diluted earnings per share	Rs	-0.1	7.2
Price to Cash Flow	x	55.4	36.0
TTM P/E ratio	x	-4,480.0	123.4
Price / Book Value ratio	x	18.3	16.8
Market Cap	Rs m	83,880	94,911
Dividends per share (Unadj.)	Rs	0.0	3.5

Ratio Analysis for WESTLIFE FOODWORLD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.4x 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 2.6x during FY23, from 1.0x 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 19.7% during FY23, from -0.4% 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 42.8% during FY23, from 17.5% 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 10.0% during FY23, from 4.6% 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	0.4	0.4
Debtors’ Days	Days	3	2
Interest coverage	x	1.0	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	10.0
Return on equity	%	-0.4	19.7
Return on capital employed	%	17.5	42.8

To see how WESTLIFE FOODWORLD has performed over the last 5 years, please visit here.

WESTLIFE FOODWORLD Share Price Performance

Over the last one year, WESTLIFE FOODWORLD share price has moved up from Rs 621.8 to Rs 924.6, registering a gain of Rs 302.8 or around 48.7%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for WESTLIFE FOODWORLD and quarterly results for WESTLIFE FOODWORLD)