HINDUSTAN FOODS 2022-23 Annual Report Analysis

Fri, 31 Mar

HINDUSTAN FOODS 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.

HINDUSTAN FOODS Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY23 as against 5.5% in FY22.
• Depreciation charges increased by 52.6% and finance costs increased by 76.7% YoY, respectively.
• Other income grew by 22.2% YoY.
• Net profit for the year grew by 59.2% YoY.
• Net profit margins during the year grew from 2.2% in FY22 to 2.7% in FY23.

HINDUSTAN FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,401	25,981	27.4%
Other income	Rs m	37	45	22.2%
Total Revenues	Rs m	20,438	26,026	27.3%
Gross profit	Rs m	1,126	1,734	53.9%
Depreciation	Rs m	245	374	52.6%
Interest	Rs m	203	359	76.7%
Profit before tax	Rs m	715	1,045	46.2%
Tax	Rs m	268	334	24.5%
Profit after tax	Rs m	447	711	59.2%
Gross profit margin	%	5.5	6.7
Effective tax rate	%	37.5	32.0
Net profit margin	%	2.2	2.7

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HINDUSTAN FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 35.1%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY22, a growth of 50.2%.
• Current assets rose 36% and stood at Rs 6 billion, while fixed assets rose 35% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 36%.

HINDUSTAN FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,041	3,749	23.3
Current Liabilities	Rs m	3,739	5,049	35.1
Long-term Debt	Rs m	2,543	3,820	50.2
Total Liabilities	Rs m	9,844	13,348	35.6
Current assets	Rs m	4,402	5,977	35.8
Fixed Assets	Rs m	5,442	7,371	35.5
Total Assets	Rs m	9,844	13,348	35.6

HINDUSTAN FOODS Cash Flow Statement Analysis

• HINDUSTAN FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs 991 million, an improvement of 172.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 75.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 73 million from the Rs -119 million net cash flows seen during FY22.

HINDUSTAN FOODS 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	364	991	172.4%
Cash Flow from Investing Activities	Rs m	-1,407	-2,465	-
Cash Flow from Financing Activities	Rs m	906	1,279	41.2%
Net Cash Flow	Rs m	-119	73	-

Current Valuations for HINDUSTAN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an decline from the EPS of Rs 19.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 504.7, stands at 80.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 56.0 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	904.7	230.5
TTM Earnings per share	Rs	19.8	6.3
Diluted earnings per share	Rs	4.0	6.3
Price to Cash Flow	x	59.6	56.0
TTM P/E ratio	x	88.5	80.0
Price / Book Value ratio	x	3.1	16.2
Market Cap	Rs m	9,423	60,762
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 3.9x during FY23, from 4.5x 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 19.0% during FY23, from 14.7% 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 18.6% during FY23, from 16.4% 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 improved and stood at 8.0% during FY23, from 6.6% 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	1.2	1.2
Debtors’ Days	Days	129	147
Interest coverage	x	4.5	3.9
Debt to equity ratio	x	0.8	1.0
Return on assets	%	6.6	8.0
Return on equity	%	14.7	19.0
Return on capital employed	%	16.4	18.6

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

HINDUSTAN FOODS Share Price Performance

Over the last one year, HINDUSTAN FOODS share price has moved up from Rs 365.5 to Rs 504.7, registering a gain of Rs 139.2 or around 38.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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