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SPECIALITY RESTAURANTS 2022-23 Annual Report Analysis

Fri, 31 Mar

SPECIALITY RESTAURANTS 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.

SPECIALITY RESTAURANTS Income Statement Analysis

• Operating income during the year rose 48.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 134.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY23 as against 14.2% in FY22.
• Depreciation charges increased by 16.0% and finance costs decreased by 4.4% YoY, respectively.
• Other income grew by 74.6% YoY.
• Net profit for the year grew by 1086.0% YoY.
• Net profit margins during the year grew from 3.2% in FY22 to 25.8% in FY23.

SPECIALITY RESTAURANTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,529	3,750	48.2%
Other income	Rs m	140	245	74.6%
Total Revenues	Rs m	2,670	3,995	49.6%
Gross profit	Rs m	360	846	134.8%
Depreciation	Rs m	273	317	16.0%
Interest	Rs m	145	139	-4.4%
Profit before tax	Rs m	82	634	677.4%
Tax	Rs m	0	-333	0.0
Profit after tax	Rs m	82	968	1,086.0%
Gross profit margin	%	14.2	22.6
Effective tax rate	%	0.0	-52.6
Net profit margin	%	3.2	25.8

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SPECIALITY RESTAURANTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 804 million as compared to Rs 687 million in FY22, thereby witnessing an increase of 17.0%.
• Current assets rose 66% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 31%.

SPECIALITY RESTAURANTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,446	2,416	67.1
Current Liabilities	Rs m	687	804	17.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,365	4,401	30.8
Current assets	Rs m	1,256	2,090	66.4
Fixed Assets	Rs m	2,101	2,306	9.8
Total Assets	Rs m	3,365	4,401	30.8

SPECIALITY RESTAURANTS Cash Flow Statement Analysis

• SPECIALITY RESTAURANTS's cash flow from operating activities (CFO) during FY23 stood at Rs 803 million, an improvement of 48.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -707 million, an improvement of 110.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -50 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 46 million from the Rs -54 million net cash flows seen during FY22.

SPECIALITY RESTAURANTS 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	540	803	48.8%
Cash Flow from Investing Activities	Rs m	-336	-707	-
Cash Flow from Financing Activities	Rs m	-258	-50	-
Net Cash Flow	Rs m	-54	46	-

Current Valuations for SPECIALITY RESTAURANTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 212.2, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	53.9	79.8
TTM Earnings per share	Rs	1.7	20.6
Diluted earnings per share	Rs	1.7	20.1
Price to Cash Flow	x	21.9	7.1
TTM P/E ratio	x	55.0	10.5
Price / Book Value ratio	x	3.4	3.8
Market Cap	Rs m	4,978	9,064
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for SPECIALITY RESTAURANTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY23, from 1.8x 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 5.6x during FY23, from 1.6x 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 40.1% during FY23, from 5.6% 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 32.0% during FY23, from 15.7% 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 25.2% during FY23, from 6.7% 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	1.8	2.6
Debtors’ Days	Days	7	6
Interest coverage	x	1.6	5.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	25.2
Return on equity	%	5.6	40.1
Return on capital employed	%	15.7	32.0

To see how SPECIALITY RESTAURANTS has performed over the last 5 years, please visit here.

SPECIALITY RESTAURANTS Share Price Performance

Over the last one year, SPECIALITY RESTAURANTS share price has moved up from Rs 161.4 to Rs 212.2, registering a gain of Rs 50.8 or around 31.4%.

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

(To know more, check out historical annual results for SPECIALITY RESTAURANTS and quarterly results for SPECIALITY RESTAURANTS)