FLEX FOODS 2021-22 Annual Report Analysis

Fri, 16 Sep

FLEX FOODS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

FLEX FOODS Income Statement Analysis

• Operating income during the year rose 7.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.7% in FY22 as against 19.9% in FY21.
• Depreciation charges decreased by 0.7% and finance costs increased by 15.9% YoY, respectively.
• Other income declined by 26.6% YoY.
• Net profit for the year declined by 24.0% YoY.
• Net profit margins during the year declined from 11.8% in FY21 to 8.3% in FY22.

FLEX FOODS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,016	1,093	7.6%
Other income	Rs m	25	18	-26.6%
Total Revenues	Rs m	1,040	1,111	6.8%
Gross profit	Rs m	203	182	-10.2%
Depreciation	Rs m	52	52	-0.7%
Interest	Rs m	21	24	15.9%
Profit before tax	Rs m	154	124	-19.5%
Tax	Rs m	34	33	-3.9%
Profit after tax	Rs m	120	91	-24.0%
Gross profit margin	%	19.9	16.7
Effective tax rate	%	22.2	26.5
Net profit margin	%	11.8	8.3

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FLEX FOODS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 716 million as compared to Rs 341 million in FY21, thereby witnessing an increase of 110.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 17% and stood at Rs 782 million, while fixed assets rose 170% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 102%.

FLEX FOODS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,059	1,139	7.5
Current Liabilities	Rs m	341	716	110.1
Long-term Debt	Rs m	0	1,061	0.0
Total Liabilities	Rs m	1,487	3,001	101.8
Current assets	Rs m	667	782	17.3
Fixed Assets	Rs m	821	2,219	170.4
Total Assets	Rs m	1,487	3,001	101.8

FLEX FOODS Cash Flow Statement Analysis

• FLEX FOODS's cash flow from operating activities (CFO) during FY22 stood at Rs 23 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 11,625.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 2,637% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 29 million from the Rs 66 million net cash flows seen during FY21.

FLEX FOODS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	128	23	-82.1%
Cash Flow from Investing Activities	Rs m	-11	-1,295	-
Cash Flow from Financing Activities	Rs m	-51	1,301	-
Net Cash Flow	Rs m	66	29	-55.1%

Current Valuations for FLEX FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 110.0, stands at 17.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	81.6	87.8
TTM Earnings per share	Rs	9.6	7.3
Diluted earnings per share	Rs	9.6	7.3
Price to Cash Flow	x	5.6	9.5
TTM P/E ratio	x	8.1	17.3
Price / Book Value ratio	x	0.7	1.2
Market Cap	Rs m	750	1,357
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for FLEX FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 2.0x during FY21. 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 6.1x during FY22, from 8.3x during FY21. 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 8.0% during FY22, from 11.3% during FY22. 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 6.7% during FY22, from 16.5% during FY21. 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 3.8% during FY22, from 9.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.0	1.1
Debtors’ Days	Days	922	909
Interest coverage	x	8.3	6.1
Debt to equity ratio	x	0.0	0.9
Return on assets	%	9.5	3.8
Return on equity	%	11.3	8.0
Return on capital employed	%	16.5	6.7

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

FLEX FOODS Share Price Performance

Over the last one year, FLEX FOODS share price has moved up from Rs 109.5 to Rs 110.0, registering a gain of Rs 0.6 or around 0.5%.

Overall, the S&P BSE SENSEX is up 1.2% over the year.

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