AGRO TECH FOODS 2021-22 Annual Report Analysis

Wed, 8 Jun

AGRO TECH 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.

AGRO TECH FOODS Income Statement Analysis

• Operating income during the year rose 2.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY22 as against 6.5% in FY21.
• Depreciation charges increased by 12.9% and finance costs increased by 35.4% YoY, respectively.
• Other income declined by 51.4% YoY.
• Net profit for the year declined by 17.3% YoY.
• Net profit margins during the year declined from 3.5% in FY21 to 2.8% in FY22.

AGRO TECH FOODS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	8,925	9,166	2.7%
Other income	Rs m	49	24	-51.4%
Total Revenues	Rs m	8,974	9,190	2.4%
Gross profit	Rs m	584	561	-3.9%
Depreciation	Rs m	186	210	12.9%
Interest	Rs m	18	25	35.4%
Profit before tax	Rs m	428	350	-18.3%
Tax	Rs m	116	92	-20.7%
Profit after tax	Rs m	313	258	-17.3%
Gross profit margin	%	6.5	6.1
Effective tax rate	%	27.0	26.2
Net profit margin	%	3.5	2.8

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AGRO TECH FOODS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 842 million in FY21, thereby witnessing an increase of 55.3%.
• Current assets rose 27% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 13%.

AGRO TECH FOODS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,220	4,507	6.8
Current Liabilities	Rs m	842	1,308	55.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,434	6,161	13.4
Current assets	Rs m	2,153	2,735	27.1
Fixed Assets	Rs m	3,282	3,426	4.4
Total Assets	Rs m	5,434	6,161	13.4

AGRO TECH FOODS Cash Flow Statement Analysis

• AGRO TECH FOODS's cash flow from operating activities (CFO) during FY22 stood at Rs -297 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -108 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 343 million, an improvement of 362% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -62 million from the Rs 66 million net cash flows seen during FY21.

AGRO TECH 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	624	-297	-
Cash Flow from Investing Activities	Rs m	-425	-108	-
Cash Flow from Financing Activities	Rs m	-131	343	-
Net Cash Flow	Rs m	66	-62	-

Current Valuations for AGRO TECH FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an decline from the EPS of Rs 12.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 825.0, stands at 77.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 50.3 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	366.2	376.1
TTM Earnings per share	Rs	12.8	10.6
Diluted earnings per share	Rs	12.8	10.6
Price to Cash Flow	x	41.0	50.3
TTM P/E ratio	x	65.3	77.8
Price / Book Value ratio	x	3.8	5.2
Market Cap	Rs m	16,112	23,587
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for AGRO TECH FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY22, from 2.6x 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 15.0x during FY22, from 24.2x 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 5.7% during FY22, from 7.4% 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 8.3% during FY22, from 10.6% 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 4.6% during FY22, from 6.1% 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	2.6	2.1
Debtors’ Days	Days	15	32
Interest coverage	x	24.2	15.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.1	4.6
Return on equity	%	7.4	5.7
Return on capital employed	%	10.6	8.3

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

AGRO TECH FOODS Share Price Performance

Over the last one year, AGRO TECH FOODS share price has moved down from Rs 968.8 to Rs 825.0, registering a loss of Rs 143.8 or around 14.8%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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

Read: Latest Annual Report Analysis of AGRO TECH FOODS