HATSUN AGRO PROD. 2022-23 Annual Report Analysis

Thu, 5 Oct

HATSUN AGRO PROD. 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.

HATSUN AGRO PROD. Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.7% in FY23 as against 11.3% in FY22.
• Depreciation charges increased by 16.3% and finance costs increased by 18.1% YoY, respectively.
• Other income grew by 7.6% YoY.
• Net profit for the year declined by 33.2% YoY.
• Net profit margins during the year declined from 3.9% in FY22 to 2.3% in FY23.

HATSUN AGRO PROD. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	63,704	72,470	13.8%
Other income	Rs m	98	106	7.6%
Total Revenues	Rs m	63,802	72,575	13.8%
Gross profit	Rs m	7,213	7,014	-2.8%
Depreciation	Rs m	3,108	3,615	16.3%
Interest	Rs m	1,066	1,259	18.1%
Profit before tax	Rs m	3,137	2,246	-28.4%
Tax	Rs m	655	587	-10.3%
Profit after tax	Rs m	2,482	1,659	-33.2%
Gross profit margin	%	11.3	9.7
Effective tax rate	%	20.9	26.1
Net profit margin	%	3.9	2.3

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HATSUN AGRO PROD. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 14 billion in FY22, thereby witnessing an decrease of -15.4%.
• Long-term debt down at Rs 8 billion as compared to Rs 8 billion during FY22, a fall of 0.5%.
• Current assets fell 2% and stood at Rs 8 billion, while fixed assets rose 10% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 42 billion as against Rs 39 billion during FY22, thereby witnessing a growth of 7%.

HATSUN AGRO PROD. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,088	14,407	29.9
Current Liabilities	Rs m	14,110	11,932	-15.4
Long-term Debt	Rs m	7,845	7,804	-0.5
Total Liabilities	Rs m	39,012	41,754	7.0
Current assets	Rs m	7,758	7,600	-2.0
Fixed Assets	Rs m	31,016	34,155	10.1
Total Assets	Rs m	39,012	41,754	7.0

HATSUN AGRO PROD. Cash Flow Statement Analysis

• HATSUN AGRO PROD.'s cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 28.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 30 million net cash flows seen during FY22.

HATSUN AGRO PROD. 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	5,764	7,412	28.6%
Cash Flow from Investing Activities	Rs m	-5,651	-4,408	-
Cash Flow from Financing Activities	Rs m	-82	-3,004	-
Net Cash Flow	Rs m	30	0	-100.0%

Current Valuations for HATSUN AGRO PROD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,102.3, stands at 126.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.0 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 40.4 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	295.5	325.3
TTM Earnings per share	Rs	11.5	7.4
Diluted earnings per share	Rs	11.1	7.4
Price to Cash Flow	x	41.9	40.4
TTM P/E ratio	x	96.7	126.5
Price / Book Value ratio	x	21.9	14.8
Market Cap	Rs m	243,139	212,838
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for HATSUN AGRO PROD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY23, from 0.5x 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 2.8x during FY23, from 3.9x 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 11.5% during FY23, from 22.4% 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 15.8% during FY23, from 22.2% 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 7.0% during FY23, from 9.1% 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	0.5	0.6
Debtors’ Days	Days	4	4
Interest coverage	x	3.9	2.8
Debt to equity ratio	x	0.7	0.5
Return on assets	%	9.1	7.0
Return on equity	%	22.4	11.5
Return on capital employed	%	22.2	15.8

To see how HATSUN AGRO PROD. has performed over the last 5 years, please visit here.

HATSUN AGRO PROD. Share Price Performance

Over the last one year, HATSUN AGRO PROD. share price has moved up from Rs 1,045.2 to Rs 1,102.3, registering a gain of Rs 57.0 or around 5.5%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for HATSUN AGRO PROD. and quarterly results for HATSUN AGRO PROD.)