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PATANJALI FOODS 2022-23 Annual Report Analysis

Mon, 2 Oct

PATANJALI 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.

PATANJALI FOODS Income Statement Analysis

• Operating income during the year rose 30.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY23 as against 6.2% in FY22.
• Depreciation charges increased by 16.8% and finance costs decreased by 31.7% YoY, respectively.
• Other income grew by 276.1% YoY.
• Net profit for the year grew by 9.9% YoY.
• Net profit margins during the year declined from 3.3% in FY22 to 2.8% in FY23.

PATANJALI FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	242,054	315,247	30.2%
Other income	Rs m	790	2,971	276.1%
Total Revenues	Rs m	242,844	318,218	31.0%
Gross profit	Rs m	14,906	12,862	-13.7%
Depreciation	Rs m	1,367	1,596	16.8%
Interest	Rs m	3,585	2,447	-31.7%
Profit before tax	Rs m	10,744	11,790	9.7%
Tax	Rs m	2,681	2,925	9.1%
Profit after tax	Rs m	8,063	8,864	9.9%
Gross profit margin	%	6.2	4.1
Effective tax rate	%	25.0	24.8
Net profit margin	%	3.3	2.8

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PATANJALI FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 32 billion as compared to Rs 23 billion in FY22, thereby witnessing an increase of 42.1%.
• Long-term debt down at Rs 781 million as compared to Rs 27 billion during FY22, a fall of 97.1%.
• Current assets rose 23% and stood at Rs 78 billion, while fixed assets rose 5% and stood at Rs 54 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 132 billion as against Rs 114 billion during FY22, thereby witnessing a growth of 15%.

PATANJALI FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	48,810	98,466	101.7
Current Liabilities	Rs m	22,536	32,019	42.1
Long-term Debt	Rs m	27,055	781	-97.1
Total Liabilities	Rs m	114,409	131,903	15.3
Current assets	Rs m	63,514	78,248	23.2
Fixed Assets	Rs m	50,855	53,619	5.4
Total Assets	Rs m	114,409	131,903	15.3

PATANJALI FOODS Cash Flow Statement Analysis

• PATANJALI FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 5 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 4 billion from the Rs 3 billion net cash flows seen during FY22.

PATANJALI 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	7,242	-3,393	-
Cash Flow from Investing Activities	Rs m	-15,624	5,261	-
Cash Flow from Financing Activities	Rs m	11,669	2,414	-79.3%
Net Cash Flow	Rs m	3,287	4,281	30.3%

Current Valuations for PATANJALI FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.5, an decline from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,240.0, stands at 61.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 38.1 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	818.4	871.0
TTM Earnings per share	Rs	27.3	24.5
Diluted earnings per share	Rs	22.3	24.5
Price to Cash Flow	x	36.7	38.1
TTM P/E ratio	x	42.9	61.2
Price / Book Value ratio	x	6.0	4.0
Market Cap	Rs m	295,173	398,291
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for PATANJALI FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY23, from 2.8x 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 5.8x during FY23, from 4.0x 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 declined and down at 9.0% during FY23, from 16.5% 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 14.3% during FY23, from 18.9% 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 8.6% during FY23, from 10.2% 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	2.8	2.4
Debtors’ Days	Days	120	185
Interest coverage	x	4.0	5.8
Debt to equity ratio	x	0.6	0.0
Return on assets	%	10.2	8.6
Return on equity	%	16.5	9.0
Return on capital employed	%	18.9	14.3

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

PATANJALI FOODS Share Price Performance

Over the last one year, PATANJALI FOODS share price has moved down from Rs 1,374.4 to Rs 1,240.0, registering a loss of Rs 134.5 or around 9.8%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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