KAVERI SEED 2022-23 Annual Report Analysis

Wed, 13 Sep

KAVERI SEED 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.

KAVERI SEED Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.8% in FY23 as against 20.9% in FY22.
• Depreciation charges decreased by 1.8% and finance costs increased by 48.0% YoY, respectively.
• Other income grew by 50.8% YoY.
• Net profit for the year grew by 28.1% YoY.
• Net profit margins during the year grew from 21.9% in FY22 to 25.5% in FY23.

KAVERI SEED Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,700	10,704	10.3%
Other income	Rs m	413	622	50.8%
Total Revenues	Rs m	10,113	11,326	12.0%
Gross profit	Rs m	2,025	2,444	20.7%
Depreciation	Rs m	209	205	-1.8%
Interest	Rs m	1	2	48.0%
Profit before tax	Rs m	2,228	2,859	28.3%
Tax	Rs m	100	133	33.1%
Profit after tax	Rs m	2,128	2,726	28.1%
Gross profit margin	%	20.9	22.8
Effective tax rate	%	4.5	4.6
Net profit margin	%	21.9	25.5

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KAVERI SEED Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 18.4%.
• Long-term debt down at Rs 1 million as compared to Rs 6 million during FY22, a fall of 78.5%.
• Current assets rose 8% and stood at Rs 16 billion, while fixed assets rose 22% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 9%.

KAVERI SEED Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,808	13,651	6.6
Current Liabilities	Rs m	5,514	6,531	18.4
Long-term Debt	Rs m	6	1	-78.5
Total Liabilities	Rs m	19,178	20,939	9.2
Current assets	Rs m	14,716	15,900	8.0
Fixed Assets	Rs m	4,124	5,037	22.2
Total Assets	Rs m	19,178	20,939	9.2

KAVERI SEED Cash Flow Statement Analysis

• KAVERI SEED's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 169.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 15 million from the Rs 66 million net cash flows seen during FY22.

KAVERI SEED 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	1,102	2,965	169.0%
Cash Flow from Investing Activities	Rs m	661	-1,188	-
Cash Flow from Financing Activities	Rs m	-1,698	-1,762	-
Net Cash Flow	Rs m	66	15	-77.7%

Current Valuations for KAVERI SEED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.8, an improvement from the EPS of Rs 36.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 563.3, stands at 10.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	166.3	191.4
TTM Earnings per share	Rs	36.5	48.8
Diluted earnings per share	Rs	38.1	48.8
Price to Cash Flow	x	13.1	10.0
TTM P/E ratio	x	14.4	10.4
Price / Book Value ratio	x	2.9	2.1
Market Cap	Rs m	37,438	29,247
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for KAVERI SEED

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY23, from 2.7x 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 1,521.7x during FY23, from 1,755.0x 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 improved and stood at 20.0% during FY23, from 16.6% 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 improved and stood at 21.0% during FY23, from 17.4% 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 13.0% during FY23, from 11.1% 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	2.7	2.4
Debtors’ Days	Days	417	455
Interest coverage	x	1,755.0	1,521.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.1	13.0
Return on equity	%	16.6	20.0
Return on capital employed	%	17.4	21.0

To see how KAVERI SEED has performed over the last 5 years, please visit here.

KAVERI SEED Share Price Performance

Over the last one year, KAVERI SEED share price has moved up from Rs 475.6 to Rs 563.3, registering a gain of Rs 87.7 or around 18.4%.

Overall, the S&P BSE SENSEX is up 11.9% over the year.

(To know more, check out historical annual results for KAVERI SEED and quarterly results for KAVERI SEED)