IFB AGRO INDUSTRIES 2022-23 Annual Report Analysis

Thu, 13 Jul

IFB AGRO INDUSTRIES 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.

IFB AGRO INDUSTRIES Income Statement Analysis

• Operating income during the year was NA 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 down at 7.9% in FY23 as against 29.4% in FY22.
• Depreciation charges increased by 10.5% and finance costs increased by 206.1% YoY, respectively.
• Other income declined by 1.0% YoY.
• Net profit for the year declined by 16.1% YoY.
• Net profit margins during the year grew from 22.9% in FY22 to 5.3% in FY23.

IFB AGRO INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	-2,557	9,225	NA
Other income	Rs m	158	156	-1.0%
Total Revenues	Rs m	-2,400	9,381	NA
Gross profit	Rs m	751	730	-2.8%
Depreciation	Rs m	170	188	10.5%
Interest	Rs m	7	20	206.1%
Profit before tax	Rs m	732	678	-7.4%
Tax	Rs m	147	187	27.0%
Profit after tax	Rs m	585	491	-16.1%
Gross profit margin	%	-29.4	7.9
Effective tax rate	%	20.1	27.5
Net profit margin	%	-22.9	5.3

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IFB AGRO INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 536 million as compared to Rs 590 million in FY22, thereby witnessing an decrease of -9.2%.
• Long-term debt down at Rs 100 million as compared to Rs 150 million during FY22, a fall of 33.3%.
• Current assets rose 9% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 7%.

IFB AGRO INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,012	5,484	9.4
Current Liabilities	Rs m	590	536	-9.2
Long-term Debt	Rs m	150	100	-33.3
Total Liabilities	Rs m	5,901	6,320	7.1
Current assets	Rs m	3,698	4,048	9.5
Fixed Assets	Rs m	2,204	2,272	3.1
Total Assets	Rs m	5,901	6,320	7.1

IFB AGRO INDUSTRIES Cash Flow Statement Analysis

• IFB AGRO INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 325 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -168 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -70 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 86 million from the Rs 587 million net cash flows seen during FY22.

IFB AGRO INDUSTRIES 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	1,053	325	-69.1%
Cash Flow from Investing Activities	Rs m	-659	-168	-
Cash Flow from Financing Activities	Rs m	193	-70	-
Net Cash Flow	Rs m	587	86	-85.3%

Current Valuations for IFB AGRO INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.4, an decline from the EPS of Rs 62.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 559.3, stands at 10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	-272.9	984.5
TTM Earnings per share	Rs	62.5	52.4
Diluted earnings per share	Rs	62.5	52.4
Price to Cash Flow	x	8.5	8.0
TTM P/E ratio	x	11.0	10.7
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	5,856	5,433
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IFB AGRO INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.6x during FY23, from 6.3x 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 34.6x during FY23, from 112.0x 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 9.0% during FY23, from 11.7% 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 declined and down at 12.5% during FY23, from 14.3% 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 8.1% during FY23, from 10.0% 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	6.3	7.6
Debtors’ Days	Days	-974	206
Interest coverage	x	112.0	34.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	8.1
Return on equity	%	11.7	9.0
Return on capital employed	%	14.3	12.5

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

IFB AGRO INDUSTRIES Share Price Performance

Over the last one year, IFB AGRO INDUSTRIES share price has moved down from Rs 572.5 to Rs 559.3, registering a loss of Rs 13.2 or around 2.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,118.7 (up 0.2%). Over the last one year it has moved up from 14,903.9 to 19,118.7, a gain of 4,215 points (up 28.3%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for IFB AGRO INDUSTRIES and quarterly results for IFB AGRO INDUSTRIES)