EVEREADY INDUSTRIES 2022-23 Annual Report Analysis

Mon, 10 Jul

EVEREADY 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.

EVEREADY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 9.9% in FY22.
• Depreciation charges decreased by 0.3% and finance costs increased by 17.9% YoY, respectively.
• Other income grew by 82.9% YoY.
• Net profit for the year declined by 40.6% YoY.
• Net profit margins during the year declined from 3.9% in FY22 to 2.1% in FY23.

EVEREADY INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,068	13,277	10.0%
Other income	Rs m	47	86	82.9%
Total Revenues	Rs m	12,115	13,363	10.3%
Gross profit	Rs m	1,192	1,101	-7.7%
Depreciation	Rs m	275	274	-0.3%
Interest	Rs m	480	566	17.9%
Profit before tax	Rs m	484	347	-28.4%
Tax	Rs m	20	70	258.4%
Profit after tax	Rs m	465	276	-40.6%
Gross profit margin	%	9.9	8.3
Effective tax rate	%	4.1	20.3
Net profit margin	%	3.9	2.1

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EVEREADY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -2.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 13.3%.
• Current assets rose 12% and stood at Rs 5 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 7%.

EVEREADY INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,901	3,194	10.1
Current Liabilities	Rs m	4,378	4,293	-2.0
Long-term Debt	Rs m	1,835	2,080	13.3
Total Liabilities	Rs m	8,236	8,816	7.1
Current assets	Rs m	4,127	4,631	12.2
Fixed Assets	Rs m	4,109	4,185	1.9
Total Assets	Rs m	8,236	8,816	7.1

EVEREADY INDUSTRIES Cash Flow Statement Analysis

• EVEREADY INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 366 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -194 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -591 million, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -415 million from the Rs -292 million net cash flows seen during FY22.

EVEREADY 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	1,340	366	-72.7%
Cash Flow from Investing Activities	Rs m	-553	-194	-
Cash Flow from Financing Activities	Rs m	-1,080	-591	-
Net Cash Flow	Rs m	-292	-415	-

Current Valuations for EVEREADY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 335.9, stands at 88.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 43.7 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	166.0	182.7
TTM Earnings per share	Rs	6.4	3.8
Diluted earnings per share	Rs	6.4	3.8
Price to Cash Flow	x	32.9	43.7
TTM P/E ratio	x	50.9	88.4
Price / Book Value ratio	x	8.4	7.5
Market Cap	Rs m	24,305	24,023
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EVEREADY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.9x 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 1.6x during FY23, from 2.0x 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 declined and down at 8.6% during FY23, from 16.0% 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 17.3% during FY23, from 20.4% 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 declined and down at 9.6% during FY23, from 11.5% 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	0.9	1.1
Debtors’ Days	Days	108	281
Interest coverage	x	2.0	1.6
Debt to equity ratio	x	0.6	0.7
Return on assets	%	11.5	9.6
Return on equity	%	16.0	8.6
Return on capital employed	%	20.4	17.3

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

EVEREADY INDUSTRIES Share Price Performance

Over the last one year, EVEREADY INDUSTRIES share price has moved up from Rs 321.9 to Rs 335.9, registering a gain of Rs 14.0 or around 4.3%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 43,408.5 (up 0.2%). Over the last one year it has moved up from 37,136.1 to 43,408.5, a gain of 6,272 points (up 16.9%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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