EVEREST INDUSTRIES 2022-23 Annual Report Analysis

Wed, 16 Aug

EVEREST INDUSTRIES 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.

EVEREST INDUSTRIES Income Statement Analysis

• Operating income during the year rose 20.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY23 as against 5.1% in FY22.
• Depreciation charges increased by 18.0% and finance costs increased by 900.6% YoY, respectively.
• Other income grew by 38.3% YoY.
• Net profit for the year declined by 3.9% YoY.
• Net profit margins during the year declined from 3.2% in FY22 to 2.6% in FY23.

EVEREST INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,647	16,476	20.7%
Other income	Rs m	294	406	38.3%
Total Revenues	Rs m	13,941	16,882	21.1%
Gross profit	Rs m	690	675	-2.1%
Depreciation	Rs m	286	338	18.0%
Interest	Rs m	31	315	900.6%
Profit before tax	Rs m	665	428	-35.6%
Tax	Rs m	224	5	-97.9%
Profit after tax	Rs m	441	424	-3.9%
Gross profit margin	%	5.1	4.1
Effective tax rate	%	33.7	1.1
Net profit margin	%	3.2	2.6

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EVEREST INDUSTRIES 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 0.3%.
• Current assets rose 5% and stood at Rs 7 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 6%.

EVEREST INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,396	5,777	7.1
Current Liabilities	Rs m	5,115	5,131	0.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,905	12,591	5.8
Current assets	Rs m	6,820	7,178	5.2
Fixed Assets	Rs m	5,084	5,411	6.4
Total Assets	Rs m	11,905	12,591	5.8

EVEREST INDUSTRIES Cash Flow Statement Analysis

• EVEREST INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 403 million, an improvement of 13.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 425 million, an improvement of 342% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -854 million from the Rs 502 million net cash flows seen during FY22.

EVEREST INDUSTRIES 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	322	-1,682	-
Cash Flow from Investing Activities	Rs m	356	403	13.1%
Cash Flow from Financing Activities	Rs m	-175	425	-
Net Cash Flow	Rs m	502	-854	-

Current Valuations for EVEREST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.9, an decline from the EPS of Rs 28.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,028.7, stands at 41.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 15.3 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	870.3	1,046.8
TTM Earnings per share	Rs	28.1	26.9
Diluted earnings per share	Rs	28.0	26.9
Price to Cash Flow	x	15.4	15.3
TTM P/E ratio	x	25.4	41.8
Price / Book Value ratio	x	1.5	2.0
Market Cap	Rs m	8,295	11,648
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for EVEREST INDUSTRIES

• 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 2.4x during FY23, from 22.1x 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 7.3% during FY23, from 8.2% 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 declined and down at 12.9% during FY23, from 12.9% 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 5.9% during FY23, from 4.0% 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	143	233
Interest coverage	x	22.1	2.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.0	5.9
Return on equity	%	8.2	7.3
Return on capital employed	%	12.9	12.9

To see how EVEREST INDUSTRIES has performed over the last 5 years, please visit here.

EVEREST INDUSTRIES Share Price Performance

Over the last one year, EVEREST INDUSTRIES share price has moved up from Rs 581.5 to Rs 1,028.7, registering a gain of Rs 447.2 or around 76.9%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for EVEREST INDUSTRIES and quarterly results for EVEREST INDUSTRIES)