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MISHTANN FOODS 2022-23 Annual Report Analysis

Tue, 6 Feb

MISHTANN 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.

MISHTANN FOODS Income Statement Analysis

• Operating income during the year rose 30.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY23 as against 10.4% in FY22.
• Depreciation charges decreased by 15.8% and finance costs increased by 31.4% YoY, respectively.
• Other income grew by 51.6% YoY.
• Net profit for the year grew by 58.9% YoY.
• Net profit margins during the year grew from 6.3% in FY22 to 7.7% in FY23.

MISHTANN FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,985	6,500	30.4%
Other income	Rs m	0	0	51.6%
Total Revenues	Rs m	4,985	6,501	30.4%
Gross profit	Rs m	520	826	58.8%
Depreciation	Rs m	9	8	-15.8%
Interest	Rs m	38	50	31.4%
Profit before tax	Rs m	473	768	62.5%
Tax	Rs m	159	269	69.6%
Profit after tax	Rs m	314	499	58.9%
Gross profit margin	%	10.4	12.7
Effective tax rate	%	33.5	35.0
Net profit margin	%	6.3	7.7

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MISHTANN FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 875 million as compared to Rs 419 million in FY22, thereby witnessing an increase of 108.9%.
• Long-term debt stood at Rs 203 million as compared to Rs 177 million during FY22, a growth of 14.6%.
• Current assets rose 78% and stood at Rs 3 billion, while fixed assets fell 61% and stood at Rs 79 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 61%.

MISHTANN FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,012	1,502	48.5
Current Liabilities	Rs m	419	875	108.9
Long-term Debt	Rs m	177	203	14.6
Total Liabilities	Rs m	1,606	2,579	60.6
Current assets	Rs m	1,403	2,500	78.1
Fixed Assets	Rs m	203	79	-61.0
Total Assets	Rs m	1,606	2,579	60.6

MISHTANN FOODS Cash Flow Statement Analysis

• MISHTANN FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs -26 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 million, an improvement of 1,800.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 24 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs 2 million net cash flows seen during FY22.

MISHTANN 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	-115	-26	-
Cash Flow from Investing Activities	Rs m	0	-1	-
Cash Flow from Financing Activities	Rs m	117	24	-79.2%
Net Cash Flow	Rs m	2	-2	-

Current Valuations for MISHTANN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.7, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 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	10.0	6.5
TTM Earnings per share	Rs	0.6	0.5
Diluted earnings per share	Rs	0.3	0.5
Price to Cash Flow	x	37.3	22.3
TTM P/E ratio	x	38.7	15.7
Price / Book Value ratio	x	5.3	7.5
Market Cap	Rs m	5,384	11,313
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MISHTANN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY23, from 3.3x 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 improved and stood at 16.4x during FY23, from 13.4x 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 33.2% during FY23, from 31.1% 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 48.0% during FY23, from 43.0% 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 21.3% during FY23, from 21.9% 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	3.3	2.9
Debtors’ Days	Days	72,644,071	123,823,486
Interest coverage	x	13.4	16.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	21.9	21.3
Return on equity	%	31.1	33.2
Return on capital employed	%	43.0	48.0

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

MISHTANN FOODS Share Price Performance

Over the last one year, MISHTANN FOODS share price has moved down from Rs 11.9 to Rs 7.7, registering a loss of Rs 4.2 or around 35.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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