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SOM DISTILLERIES 2022-23 Annual Report Analysis

Fri, 31 Mar

SOM DISTILLERIES 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.

SOM DISTILLERIES Income Statement Analysis

• Operating income during the year rose 55.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 429.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 88.5% in FY23 as against 26.0% in FY22.
• Depreciation charges increased by 1.4% and finance costs increased by 4.0% YoY, respectively.
• Other income grew by 351.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 13.3% in FY22 to 52.3% in FY23.

SOM DISTILLERIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	741	1,153	55.6%
Other income	Rs m	3	13	351.5%
Total Revenues	Rs m	744	1,166	56.7%
Gross profit	Rs m	193	1,021	429.2%
Depreciation	Rs m	168	170	1.4%
Interest	Rs m	154	160	4.0%
Profit before tax	Rs m	-125	705	NA
Tax	Rs m	-27	101	NA
Profit after tax	Rs m	-98	603	NA
Gross profit margin	%	26.0	88.5
Effective tax rate	%	21.5	14.4
Net profit margin	%	-13.3	52.3

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SOM DISTILLERIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 8.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 43.6%.
• Current assets rose 45% and stood at Rs 4 billion, while fixed assets rose 21% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 30%.

SOM DISTILLERIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,896	3,754	29.6
Current Liabilities	Rs m	2,926	3,175	8.5
Long-term Debt	Rs m	1,112	1,597	43.6
Total Liabilities	Rs m	6,994	9,118	30.4
Current assets	Rs m	2,684	3,895	45.1
Fixed Assets	Rs m	4,310	5,224	21.2
Total Assets	Rs m	6,994	9,118	30.4

SOM DISTILLERIES Cash Flow Statement Analysis

• SOM DISTILLERIES's cash flow from operating activities (CFO) during FY23 stood at Rs 143 million, an improvement of 54.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 1,699.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 973 million, an improvement of 1,286% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 31 million from the Rs -50 million net cash flows seen during FY22.

SOM DISTILLERIES 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	93	143	54.3%
Cash Flow from Investing Activities	Rs m	-60	-1,084	-
Cash Flow from Financing Activities	Rs m	-82	973	-
Net Cash Flow	Rs m	-50	31	-

Current Valuations for SOM DISTILLERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs -1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.7, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 9.8 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	10.6	15.6
TTM Earnings per share	Rs	-1.4	8.2
Diluted earnings per share	Rs	-1.3	7.8
Price to Cash Flow	x	69.9	10.0
TTM P/E ratio	x	-49.3	19.7
Price / Book Value ratio	x	1.2	2.1
Market Cap	Rs m	3,338	7,703
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for SOM DISTILLERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 0.9x 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 5.4x during FY23, from 0.2x 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 16.1% during FY23, from -3.4% 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 improved and stood at 16.2% during FY23, from 0.7% 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 improved and stood at 8.4% during FY23, from 0.8% 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	0.9	1.2
Debtors’ Days	Days	5,702	4,500
Interest coverage	x	0.2	5.4
Debt to equity ratio	x	0.4	0.4
Return on assets	%	0.8	8.4
Return on equity	%	-3.4	16.1
Return on capital employed	%	0.7	16.2

To see how SOM DISTILLERIES has performed over the last 5 years, please visit here.

SOM DISTILLERIES Share Price Performance

Over the last one year, SOM DISTILLERIES share price has moved up from Rs 62.6 to Rs 153.7, registering a gain of Rs 91.1 or around 145.6%.

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

(To know more, check out historical annual results for SOM DISTILLERIES and quarterly results for SOM DISTILLERIES)