LAXMI ORGANIC INDUSTRIES 2022-23 Annual Report Analysis

Mon, 17 Jul

LAXMI ORGANIC 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.

LAXMI ORGANIC INDUSTRIES Income Statement Analysis

• Operating income during the year fell 9.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY23 as against 12.0% in FY22.
• Depreciation charges increased by 50.3% and finance costs decreased by 21.6% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year declined by 51.6% YoY.
• Net profit margins during the year declined from 8.3% in FY22 to 4.5% in FY23.

LAXMI ORGANIC INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,843	27,966	-9.3%
Other income	Rs m	148	121	-18.5%
Total Revenues	Rs m	30,991	28,087	-9.4%
Gross profit	Rs m	3,712	2,481	-33.2%
Depreciation	Rs m	482	724	50.3%
Interest	Rs m	190	149	-21.6%
Profit before tax	Rs m	3,189	1,729	-45.8%
Tax	Rs m	614	483	-21.4%
Profit after tax	Rs m	2,574	1,246	-51.6%
Gross profit margin	%	12.0	8.9
Effective tax rate	%	19.3	27.9
Net profit margin	%	8.3	4.5

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

LAXMI ORGANIC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -10.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 22 million during FY22, a growth of 5917.5%.
• Current assets fell 17% and stood at Rs 12 billion, while fixed assets rose 54% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 7%.

LAXMI ORGANIC INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,621	13,865	9.9
Current Liabilities	Rs m	9,320	8,301	-10.9
Long-term Debt	Rs m	22	1,303	5,917.5
Total Liabilities	Rs m	22,495	24,122	7.2
Current assets	Rs m	14,730	12,167	-17.4
Fixed Assets	Rs m	7,765	11,955	54.0
Total Assets	Rs m	22,495	24,122	7.2

LAXMI ORGANIC INDUSTRIES Cash Flow Statement Analysis

• LAXMI ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 206.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 288% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 474 million from the Rs 170 million net cash flows seen during FY22.

LAXMI ORGANIC 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	650	1,991	206.3%
Cash Flow from Investing Activities	Rs m	546	-3,841	-
Cash Flow from Financing Activities	Rs m	-1,239	2,325	-
Net Cash Flow	Rs m	170	474	178.9%

Current Valuations for LAXMI ORGANIC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 254.5, stands at 54.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 48.0 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	117.0	105.5
TTM Earnings per share	Rs	9.8	4.7
Diluted earnings per share	Rs	9.7	4.7
Price to Cash Flow	x	34.7	48.0
TTM P/E ratio	x	41.2	54.1
Price / Book Value ratio	x	8.4	6.8
Market Cap	Rs m	105,406	94,668
Dividends per share (Unadj.)	Rs	0.7	0.5

Ratio Analysis for LAXMI ORGANIC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.6x 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 12.6x during FY23, from 17.8x 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 20.4% 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 12.4% during FY23, from 26.7% 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 5.8% during FY23, from 12.3% 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	1.6	1.5
Debtors’ Days	Days	79	74
Interest coverage	x	17.8	12.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	12.3	5.8
Return on equity	%	20.4	9.0
Return on capital employed	%	26.7	12.4

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

LAXMI ORGANIC INDUSTRIES Share Price Performance

Over the last one year, LAXMI ORGANIC INDUSTRIES share price has moved down from Rs 277.4 to Rs 254.5, registering a loss of Rs 22.9 or around 8.2%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for LAXMI ORGANIC INDUSTRIES and quarterly results for LAXMI ORGANIC INDUSTRIES)