EVEREST ORGANICS 2022-23 Annual Report Analysis

Tue, 10 Oct

EVEREST ORGANICS 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 ORGANICS Income Statement Analysis

• Operating income during the year fell 7.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 85.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.6% in FY23 as against 3.8% in FY22.
• Depreciation charges increased by 17.8% and finance costs increased by 6.7% YoY, respectively.
• Other income grew by 214.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.7% in FY22 to 0.1% in FY23.

EVEREST ORGANICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,699	1,574	-7.4%
Other income	Rs m	22	69	214.1%
Total Revenues	Rs m	1,721	1,643	-4.5%
Gross profit	Rs m	64	9	-85.5%
Depreciation	Rs m	38	45	17.8%
Interest	Rs m	31	33	6.7%
Profit before tax	Rs m	17	1	-94.8%
Tax	Rs m	6	3	-54.4%
Profit after tax	Rs m	11	-2	NA
Gross profit margin	%	3.8	0.6
Effective tax rate	%	34.3	302.2
Net profit margin	%	0.7	-0.1

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EVEREST ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 22.2%.
• Long-term debt stood at Rs 117 million as compared to Rs 110 million during FY22, a growth of 6.0%.
• Current assets rose 12% and stood at Rs 1 billion, while fixed assets rose 15% and stood at Rs 694 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 13%.

EVEREST ORGANICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	468	462	-1.2
Current Liabilities	Rs m	1,126	1,376	22.2
Long-term Debt	Rs m	110	117	6.0
Total Liabilities	Rs m	1,780	2,018	13.4
Current assets	Rs m	1,179	1,325	12.4
Fixed Assets	Rs m	601	694	15.4
Total Assets	Rs m	1,780	2,018	13.4

EVEREST ORGANICS Cash Flow Statement Analysis

• EVEREST ORGANICS's cash flow from operating activities (CFO) during FY23 stood at Rs 184 million, an improvement of 34.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -156 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -26 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs -10 million net cash flows seen during FY22.

EVEREST ORGANICS 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	137	184	34.1%
Cash Flow from Investing Activities	Rs m	-168	-156	-
Cash Flow from Financing Activities	Rs m	21	-26	-
Net Cash Flow	Rs m	-10	2	-

Current Valuations for EVEREST ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.5, stands at 37.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 30.8 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	212.3	196.7
TTM Earnings per share	Rs	1.4	-0.2
Diluted earnings per share	Rs	1.4	-0.2
Price to Cash Flow	x	28.1	30.8
TTM P/E ratio	x	121.6	37.6
Price / Book Value ratio	x	5.5	2.9
Market Cap	Rs m	2,564	1,322
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for EVEREST ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x 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 1.0x during FY23, from 1.6x 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 -0.4% during FY23, from 2.4% 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 declined and down at 5.9% during FY23, from 8.4% 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 1.5% during FY23, from 2.4% 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	1.0	1.0
Debtors’ Days	Days	1,473	1,771
Interest coverage	x	1.6	1.0
Debt to equity ratio	x	0.2	0.3
Return on assets	%	2.4	1.5
Return on equity	%	2.4	-0.4
Return on capital employed	%	8.4	5.9

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

EVEREST ORGANICS Share Price Performance

Over the last one year, EVEREST ORGANICS share price has moved down from Rs 131.1 to Rs 122.5, registering a loss of Rs 8.6 or around 6.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,004.5 (up 0.1%). Over the last one year it has moved up from 23,451.7 to 28,004.5, a gain of 4,553 points (up 19.4%).

Overall, the S&P BSE SENSEX is up 13.5% over the year.

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