UNITED NILGIRI TEA ESTATES 2022-23 Annual Report Analysis

Tue, 27 Jun

UNITED NILGIRI TEA ESTATES 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.

UNITED NILGIRI TEA ESTATES Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY23 as against 14.7% in FY22.
• Depreciation charges increased by 4.5% increased by 0.0% YoY, respectively.
• Other income declined by 8.5% YoY.
• Net profit for the year grew by 17.7% YoY.
• Net profit margins during the year grew from 13.6% in FY22 to 14.5% in FY23.

UNITED NILGIRI TEA ESTATES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	757	837	10.6%
Other income	Rs m	54	49	-8.5%
Total Revenues	Rs m	810	886	9.3%
Gross profit	Rs m	111	138	23.9%
Depreciation	Rs m	35	37	4.5%
Interest	Rs m	1	1	0.0%
Profit before tax	Rs m	129	149	15.8%
Tax	Rs m	26	28	8.2%
Profit after tax	Rs m	103	121	17.7%
Gross profit margin	%	14.7	16.4
Effective tax rate	%	20.1	18.8
Net profit margin	%	13.6	14.5

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UNITED NILGIRI TEA ESTATES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 280 million as compared to Rs 323 million in FY22, thereby witnessing an decrease of -13.2%.
• Current assets fell 3% and stood at Rs 662 million, while fixed assets rose 7% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 4%.

UNITED NILGIRI TEA ESTATES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,753	1,871	6.8
Current Liabilities	Rs m	323	280	-13.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,120	2,198	3.7
Current assets	Rs m	682	662	-2.8
Fixed Assets	Rs m	1,438	1,536	6.8
Total Assets	Rs m	2,120	2,198	3.7

UNITED NILGIRI TEA ESTATES Cash Flow Statement Analysis

• UNITED NILGIRI TEA ESTATES 's cash flow from operating activities (CFO) during FY23 stood at Rs 151 million, an improvement of 175.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -132 million, an improvement of 313.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -13 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs 9 million net cash flows seen during FY22.

UNITED NILGIRI TEA ESTATES 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	55	151	175.7%
Cash Flow from Investing Activities	Rs m	-32	-132	-
Cash Flow from Financing Activities	Rs m	-13	-13	-
Net Cash Flow	Rs m	9	5	-45.7%

Current Valuations for UNITED NILGIRI TEA ESTATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an improvement from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 271.1, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	151.3	167.3
TTM Earnings per share	Rs	20.6	24.2
Diluted earnings per share	Rs	20.6	24.2
Price to Cash Flow	x	0.0	11.0
TTM P/E ratio	x	0.0	11.2
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	1,949	1,734
Dividends per share (Unadj.)	Rs	3.7	2.7

Ratio Analysis for UNITED NILGIRI TEA ESTATES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 2.1x 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 147.3x during FY23, from 127.3x 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 6.5% during FY23, from 5.9% 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 8.0% during FY23, from 7.4% 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 5.6% during FY23, from 4.9% 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	2.1	2.4
Debtors’ Days	Days	39,800	23,587
Interest coverage	x	127.3	147.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.9	5.6
Return on equity	%	5.9	6.5
Return on capital employed	%	7.4	8.0

To see how UNITED NILGIRI TEA ESTATES has performed over the last 5 years, please visit here.

UNITED NILGIRI TEA ESTATES Share Price Performance

Over the last one year, UNITED NILGIRI TEA ESTATES share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.3% over the year.

(To know more, check out historical annual results for UNITED NILGIRI TEA ESTATES and quarterly results for UNITED NILGIRI TEA ESTATES )