AGRO TECH FOODS 2022-23 Annual Report Analysis

Wed, 21 Jun

AGRO TECH 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.

AGRO TECH FOODS Income Statement Analysis

• Operating income during the year fell 7.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 4.3% and finance costs increased by 29.6% YoY, respectively.
• Other income declined by 88.8% YoY.
• Net profit for the year declined by 41.7% YoY.
• Net profit margins during the year declined from 2.8% in FY22 to 1.8% in FY23.

AGRO TECH FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,166	8,497	-7.3%
Other income	Rs m	24	3	-88.8%
Total Revenues	Rs m	9,190	8,500	-7.5%
Gross profit	Rs m	561	453	-19.4%
Depreciation	Rs m	210	219	4.3%
Interest	Rs m	25	32	29.6%
Profit before tax	Rs m	350	204	-41.8%
Tax	Rs m	92	53	-42.1%
Profit after tax	Rs m	258	151	-41.7%
Gross profit margin	%	6.1	5.3
Effective tax rate	%	26.2	26.0
Net profit margin	%	2.8	1.8

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AGRO TECH FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -2.8%.
• Current assets fell 0% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 4 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 3%.

AGRO TECH FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,507	4,808	6.7
Current Liabilities	Rs m	1,308	1,271	-2.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,161	6,365	3.3
Current assets	Rs m	2,735	2,722	-0.5
Fixed Assets	Rs m	3,426	3,642	6.3
Total Assets	Rs m	6,161	6,365	3.3

AGRO TECH FOODS Cash Flow Statement Analysis

• AGRO TECH FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs 224 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -412 million, an improvement of 280.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 220 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 13 million from the Rs -62 million net cash flows seen during FY22.

AGRO TECH 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	-297	224	-
Cash Flow from Investing Activities	Rs m	-108	-412	-
Cash Flow from Financing Activities	Rs m	343	220	-35.9%
Net Cash Flow	Rs m	-62	13	-

Current Valuations for AGRO TECH FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 801.2, stands at 129.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 55.2 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	376.1	348.7
TTM Earnings per share	Rs	10.6	6.2
Diluted earnings per share	Rs	10.6	6.2
Price to Cash Flow	x	43.8	55.2
TTM P/E ratio	x	79.5	129.5
Price / Book Value ratio	x	5.2	4.2
Market Cap	Rs m	23,587	20,406
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for AGRO TECH FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 2.1x 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 7.3x during FY23, from 15.0x 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 3.1% during FY23, from 5.7% 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 4.9% during FY23, from 8.3% 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 2.9% during FY23, from 4.6% 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	2.1	2.1
Debtors’ Days	Days	32	30
Interest coverage	x	15.0	7.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	2.9
Return on equity	%	5.7	3.1
Return on capital employed	%	8.3	4.9

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 817.4 to Rs 0.0, registering a loss of Rs 817.4 or around 100.0%.

Overall, the NIFTY 50 is up 0.2% over the year.

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