FOODS & INNS 2022-23 Annual Report Analysis

Tue, 26 Sep

FOODS & INNS 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.

FOODS & INNS Income Statement Analysis

• Operating income during the year rose 57.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY23 as against 8.1% in FY22.
• Depreciation charges increased by 5.4% and finance costs increased by 44.8% YoY, respectively.
• Other income declined by 7.9% YoY.
• Net profit for the year grew by 210.1% YoY.
• Net profit margins during the year grew from 2.4% in FY22 to 4.8% in FY23.

FOODS & INNS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,321	9,956	57.5%
Other income	Rs m	65	59	-7.9%
Total Revenues	Rs m	6,386	10,015	56.8%
Gross profit	Rs m	513	1,029	100.6%
Depreciation	Rs m	133	140	5.4%
Interest	Rs m	209	302	44.8%
Profit before tax	Rs m	236	646	174.0%
Tax	Rs m	83	172	107.5%
Profit after tax	Rs m	153	474	210.1%
Gross profit margin	%	8.1	10.3
Effective tax rate	%	35.1	26.6
Net profit margin	%	2.4	4.8

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FOODS & INNS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 35.0%.
• Long-term debt stood at Rs 552 million as compared to Rs 433 million during FY22, a growth of 27.4%.
• Current assets rose 53% and stood at Rs 6 billion, while fixed assets rose 27% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 44%.

FOODS & INNS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,964	2,469	25.7
Current Liabilities	Rs m	3,258	4,398	35.0
Long-term Debt	Rs m	433	552	27.4
Total Liabilities	Rs m	5,643	8,112	43.8
Current assets	Rs m	3,632	5,550	52.8
Fixed Assets	Rs m	2,011	2,562	27.4
Total Assets	Rs m	5,643	8,112	43.8

FOODS & INNS Cash Flow Statement Analysis

• FOODS & INNS's cash flow from operating activities (CFO) during FY23 stood at Rs -732 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -775 million, an improvement of 49.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 368% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -166 million from the Rs -78 million net cash flows seen during FY22.

FOODS & INNS 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	155	-732	-
Cash Flow from Investing Activities	Rs m	-519	-775	-
Cash Flow from Financing Activities	Rs m	286	1,340	368.4%
Net Cash Flow	Rs m	-78	-166	-

Current Valuations for FOODS & INNS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.0, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	125.6	195.4
TTM Earnings per share	Rs	3.0	9.3
Diluted earnings per share	Rs	2.9	8.8
Price to Cash Flow	x	15.5	8.7
TTM P/E ratio	x	27.7	17.9
Price / Book Value ratio	x	2.2	2.2
Market Cap	Rs m	4,359	5,361
Dividends per share (Unadj.)	Rs	0.3	0.5

Ratio Analysis for FOODS & INNS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.1x 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 3.1x during FY23, from 2.1x 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 improved and stood at 19.2% during FY23, from 7.8% 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 31.4% during FY23, from 18.5% 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 9.6% during FY23, from 6.4% 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	1.1	1.3
Debtors’ Days	Days	546	551
Interest coverage	x	2.1	3.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	6.4	9.6
Return on equity	%	7.8	19.2
Return on capital employed	%	18.5	31.4

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

FOODS & INNS Share Price Performance

Over the last one year, FOODS & INNS share price has moved up from Rs 92.9 to Rs 184.0, registering a gain of Rs 91.2 or around 98.2%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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