TASTY BITE 2022-23 Annual Report Analysis

Mon, 24 Jul

TASTY BITE 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.

TASTY BITE Income Statement Analysis

• Operating income during the year rose 27.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY23 as against 9.0% in FY22.
• Depreciation charges increased by 13.2% and finance costs increased by 14.5% YoY, respectively.
• Other income grew by 2.2% YoY.
• Net profit for the year grew by 192.5% YoY.
• Net profit margins during the year grew from 2.8% in FY22 to 6.4% in FY23.

TASTY BITE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,721	4,757	27.8%
Other income	Rs m	135	138	2.2%
Total Revenues	Rs m	3,856	4,894	26.9%
Gross profit	Rs m	336	640	90.5%
Depreciation	Rs m	243	275	13.2%
Interest	Rs m	83	95	14.5%
Profit before tax	Rs m	145	408	181.6%
Tax	Rs m	41	106	154.5%
Profit after tax	Rs m	103	302	192.5%
Gross profit margin	%	9.0	13.4
Effective tax rate	%	28.7	25.9
Net profit margin	%	2.8	6.4

Emerging Opportunity: Bluechip Bull Run

TASTY BITE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 18.7%.
• Long-term debt down at Rs 334 million as compared to Rs 436 million during FY22, a fall of 23.4%.
• Current assets rose 16% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 7%.

TASTY BITE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,154	2,418	12.2
Current Liabilities	Rs m	1,056	1,253	18.7
Long-term Debt	Rs m	436	334	-23.4
Total Liabilities	Rs m	4,286	4,572	6.7
Current assets	Rs m	1,590	1,851	16.4
Fixed Assets	Rs m	2,696	2,721	0.9
Total Assets	Rs m	4,286	4,572	6.7

TASTY BITE Cash Flow Statement Analysis

• TASTY BITE's cash flow from operating activities (CFO) during FY23 stood at Rs 611 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -337 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -178 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 95 million from the Rs -309 million net cash flows seen during FY22.

TASTY BITE 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	650	611	-6.0%
Cash Flow from Investing Activities	Rs m	-466	-337	-
Cash Flow from Financing Activities	Rs m	-492	-178	-
Net Cash Flow	Rs m	-309	95	-

Current Valuations for TASTY BITE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 117.5, an improvement from the EPS of Rs 40.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13,497.3, stands at 114.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.3 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 49.7 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	1,447.8	1,850.8
TTM Earnings per share	Rs	40.2	117.5
Diluted earnings per share	Rs	40.2	117.7
Price to Cash Flow	x	80.5	49.7
TTM P/E ratio	x	270.0	114.6
Price / Book Value ratio	x	19.0	11.9
Market Cap	Rs m	40,992	28,682
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for TASTY BITE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.5x 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 5.3x during FY23, from 2.7x 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 12.5% during FY23, from 4.8% 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 18.3% during FY23, from 8.8% 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 8.7% during FY23, from 4.3% 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	1.5	1.5
Debtors’ Days	Days	53	45
Interest coverage	x	2.7	5.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.3	8.7
Return on equity	%	4.8	12.5
Return on capital employed	%	8.8	18.3

To see how TASTY BITE has performed over the last 5 years, please visit here.

TASTY BITE Share Price Performance

Over the last one year, TASTY BITE share price has moved up from Rs 12,128.7 to Rs 13,497.3, registering a gain of Rs 1,368.6 or around 11.3%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for TASTY BITE and quarterly results for TASTY BITE)