GODREJ AGROVET 2022-23 Annual Report Analysis

Wed, 12 Jul

GODREJ AGROVET 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.

GODREJ AGROVET Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY23 as against 8.4% in FY22.
• Depreciation charges increased by 7.0% and finance costs increased by 57.1% YoY, respectively.
• Other income grew by 39.5% YoY.
• Net profit for the year declined by 29.5% YoY.
• Net profit margins during the year declined from 5.0% in FY22 to 3.2% in FY23.

GODREJ AGROVET Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	83,061	93,737	12.9%
Other income	Rs m	797	1,112	39.5%
Total Revenues	Rs m	83,857	94,848	13.1%
Gross profit	Rs m	6,983	5,511	-21.1%
Depreciation	Rs m	1,733	1,855	7.0%
Interest	Rs m	631	991	57.1%
Profit before tax	Rs m	5,416	3,777	-30.3%
Tax	Rs m	1,224	823	-32.8%
Profit after tax	Rs m	4,192	2,954	-29.5%
Gross profit margin	%	8.4	5.9
Effective tax rate	%	22.6	21.8
Net profit margin	%	5.0	3.2

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GODREJ AGROVET Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 24 billion as compared to Rs 26 billion in FY22, thereby witnessing an decrease of -9.8%.
• Long-term debt stood at Rs 547 million as compared to Rs 473 million during FY22, a growth of 15.7%.
• Current assets fell 18% and stood at Rs 23 billion, while fixed assets rose 14% and stood at Rs 31 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 54 billion as against Rs 56 billion during FY22, thereby witnessing a fall of 2%.

GODREJ AGROVET Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	22,633	23,317	3.0
Current Liabilities	Rs m	26,357	23,780	-9.8
Long-term Debt	Rs m	473	547	15.7
Total Liabilities	Rs m	55,565	54,436	-2.0
Current assets	Rs m	27,965	23,055	-17.6
Fixed Assets	Rs m	27,600	31,381	13.7
Total Assets	Rs m	55,565	54,436	-2.0

GODREJ AGROVET Cash Flow Statement Analysis

• GODREJ AGROVET 's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 36.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -46 million from the Rs -173 million net cash flows seen during FY22.

GODREJ AGROVET 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	-1,201	8,740	-
Cash Flow from Investing Activities	Rs m	-2,081	-2,843	-
Cash Flow from Financing Activities	Rs m	3,108	-5,944	-
Net Cash Flow	Rs m	-173	-46	-

Current Valuations for GODREJ AGROVET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 465.4, stands at 34.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	432.4	487.8
TTM Earnings per share	Rs	21.8	15.4
Diluted earnings per share	Rs	21.8	15.4
Price to Cash Flow	x	14.3	19.7
TTM P/E ratio	x	23.0	34.0
Price / Book Value ratio	x	5.0	4.1
Market Cap	Rs m	114,096	94,543
Dividends per share (Unadj.)	Rs	9.5	9.5

Ratio Analysis for GODREJ AGROVET

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 deteriorated and stood at 4.8x during FY23, from 9.6x 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 12.7% during FY23, from 18.5% 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 20.0% during FY23, from 26.2% 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 7.2% during FY23, from 8.7% 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	1.0
Debtors’ Days	Days	4	2
Interest coverage	x	9.6	4.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	7.2
Return on equity	%	18.5	12.7
Return on capital employed	%	26.2	20.0

To see how GODREJ AGROVET has performed over the last 5 years, please visit here.

GODREJ AGROVET Share Price Performance

Over the last one year, GODREJ AGROVET share price has moved down from Rs 519.0 to Rs 465.4, registering a loss of Rs 53.6 or around 10.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,049.2 (down 0.2%). Over the last one year it has moved up from 14,778.0 to 19,049.2, a gain of 4,271 points (up 28.9%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for GODREJ AGROVET and quarterly results for GODREJ AGROVET )