JUBILANT FOODWORKS 2022-23 Annual Report Analysis

Sun, 6 Aug

JUBILANT FOODWORKS 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.

JUBILANT FOODWORKS Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.8% in FY23 as against 24.8% in FY22.
• Depreciation charges increased by 23.6% and finance costs increased by 14.3% YoY, respectively.
• Other income grew by 21.9% YoY.
• Net profit for the year declined by 15.6% YoY.
• Net profit margins during the year declined from 9.5% in FY22 to 6.8% in FY23.

JUBILANT FOODWORKS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	43,961	51,582	17.3%
Other income	Rs m	414	504	21.9%
Total Revenues	Rs m	44,375	52,087	17.4%
Gross profit	Rs m	10,910	11,254	3.2%
Depreciation	Rs m	3,931	4,859	23.6%
Interest	Rs m	1,761	2,012	14.3%
Profit before tax	Rs m	5,633	4,887	-13.2%
Tax	Rs m	1,452	1,357	-6.5%
Profit after tax	Rs m	4,181	3,530	-15.6%
Gross profit margin	%	24.8	21.8
Effective tax rate	%	25.8	27.8
Net profit margin	%	9.5	6.8

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JUBILANT FOODWORKS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 12.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 52.5%.
• Current assets fell 26% and stood at Rs 7 billion, while fixed assets rose 21% and stood at Rs 46 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 53 billion as against Rs 47 billion during FY22, thereby witnessing a growth of 12%.

JUBILANT FOODWORKS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,353	20,255	4.7
Current Liabilities	Rs m	9,191	10,290	12.0
Long-term Debt	Rs m	1,198	1,827	52.5
Total Liabilities	Rs m	47,291	53,078	12.2
Current assets	Rs m	9,224	6,858	-25.6
Fixed Assets	Rs m	38,067	46,220	21.4
Total Assets	Rs m	47,291	53,078	12.2

JUBILANT FOODWORKS Cash Flow Statement Analysis

• JUBILANT FOODWORKS's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion, an improvement of 10.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 49 million from the Rs -308 million net cash flows seen during FY22.

JUBILANT FOODWORKS 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	9,300	10,262	10.3%
Cash Flow from Investing Activities	Rs m	-6,542	-5,949	-
Cash Flow from Financing Activities	Rs m	-3,066	-4,264	-
Net Cash Flow	Rs m	-308	49	-

Current Valuations for JUBILANT FOODWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an decline from the EPS of Rs 31.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 517.4, stands at 105.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.9 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 41.9 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	333.1	78.2
TTM Earnings per share	Rs	31.7	5.4
Diluted earnings per share	Rs	6.3	5.4
Price to Cash Flow	x	42.9	41.9
TTM P/E ratio	x	81.2	105.1
Price / Book Value ratio	x	23.9	17.3
Market Cap	Rs m	463,307	351,170
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for JUBILANT FOODWORKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY23, from 1.0x 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 3.4x during FY23, from 4.2x 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 17.4% during FY23, from 21.6% 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 31.2% during FY23, from 36.0% 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 10.4% during FY23, from 12.6% 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	1.0	0.7
Debtors’ Days	Days	2	2
Interest coverage	x	4.2	3.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.6	10.4
Return on equity	%	21.6	17.4
Return on capital employed	%	36.0	31.2

To see how JUBILANT FOODWORKS has performed over the last 5 years, please visit here.

JUBILANT FOODWORKS Share Price Performance

Over the last one year, JUBILANT FOODWORKS share price has moved down from Rs 575.7 to Rs 517.4, registering a loss of Rs 58.3 or around 10.1%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for JUBILANT FOODWORKS and quarterly results for JUBILANT FOODWORKS)