PRIME FRESH 2022-23 Annual Report Analysis

Tue, 20 Feb

PRIME FRESH 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.

PRIME FRESH Income Statement Analysis

• Operating income during the year rose 28.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY23 as against 6.3% in FY22.
• Depreciation charges increased by 40.5% and finance costs decreased by 32.7% YoY, respectively.
• Other income grew by 53.8% YoY.
• Net profit for the year grew by 53.4% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 5.2% in FY23.

PRIME FRESH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	772	993	28.7%
Other income	Rs m	2	3	53.8%
Total Revenues	Rs m	774	997	28.8%
Gross profit	Rs m	49	71	45.6%
Depreciation	Rs m	1	1	40.5%
Interest	Rs m	5	3	-32.7%
Profit before tax	Rs m	46	70	53.9%
Tax	Rs m	12	19	55.6%
Profit after tax	Rs m	33	51	53.4%
Gross profit margin	%	6.3	7.2
Effective tax rate	%	26.8	27.1
Net profit margin	%	4.3	5.2

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PRIME FRESH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 95 million as compared to Rs 75 million in FY22, thereby witnessing an increase of 25.6%.
• Long-term debt down at Rs 1 million as compared to Rs 4 million during FY22, a fall of 76.4%.
• Current assets rose 31% and stood at Rs 385 million, while fixed assets rose 46% and stood at Rs 18 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 402 million as against Rs 305 million during FY22, thereby witnessing a growth of 32%.

PRIME FRESH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	214	304	42.0
Current Liabilities	Rs m	75	95	25.6
Long-term Debt	Rs m	4	1	-76.4
Total Liabilities	Rs m	305	402	31.6
Current assets	Rs m	293	385	31.1
Fixed Assets	Rs m	12	18	45.9
Total Assets	Rs m	305	402	31.6

PRIME FRESH Cash Flow Statement Analysis

• PRIME FRESH's cash flow from operating activities (CFO) during FY23 stood at Rs -12 million, an improvement of 4,463.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 32 million, an improvement of 285% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 17 million from the Rs 4 million net cash flows seen during FY22.

PRIME FRESH 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	0	-12	-
Cash Flow from Investing Activities	Rs m	-4	-3	-
Cash Flow from Financing Activities	Rs m	8	32	285.2%
Net Cash Flow	Rs m	4	17	336.6%

Current Valuations for PRIME FRESH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 209.9, stands at 55.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 43.2 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	65.3	79.3
TTM Earnings per share	Rs	2.8	4.1
Diluted earnings per share	Rs	2.4	3.8
Price to Cash Flow	x	30.7	43.2
TTM P/E ratio	x	31.4	55.9
Price / Book Value ratio	x	7.2	7.5
Market Cap	Rs m	1,550	2,265
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRIME FRESH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY23, from 3.9x 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 23.9x during FY23, from 11.0x 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 16.9% during FY23, from 15.6% 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 24.1% during FY23, from 23.0% 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 improved and stood at 13.5% during FY23, from 12.4% 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	3.9	4.1
Debtors’ Days	Days	923	964
Interest coverage	x	11.0	23.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.4	13.5
Return on equity	%	15.6	16.9
Return on capital employed	%	23.0	24.1

To see how PRIME FRESH has performed over the last 5 years, please visit here.

PRIME FRESH Share Price Performance

Over the last one year, PRIME FRESH share price has moved up from Rs 77.0 to Rs 209.9, registering a gain of Rs 132.9 or around 172.6%.

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

(To know more, check out historical annual results for PRIME FRESH and quarterly results for PRIME FRESH)