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UTTAM SUGAR 2022-23 Annual Report Analysis

Fri, 25 Aug

UTTAM SUGAR 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.

UTTAM SUGAR Income Statement Analysis

• Operating income during the year rose 1.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY23 as against 13.3% in FY22.
• Depreciation charges increased by 9.2% and finance costs decreased by 30.1% YoY, respectively.
• Other income declined by 43.8% YoY.
• Net profit for the year declined by 8.4% YoY.
• Net profit margins during the year declined from 6.6% in FY22 to 6.0% in FY23.

UTTAM SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,343	20,589	1.2%
Other income	Rs m	157	88	-43.8%
Total Revenues	Rs m	20,500	20,677	0.9%
Gross profit	Rs m	2,696	2,448	-9.2%
Depreciation	Rs m	332	363	9.2%
Interest	Rs m	749	524	-30.1%
Profit before tax	Rs m	1,771	1,650	-6.9%
Tax	Rs m	422	413	-2.1%
Profit after tax	Rs m	1,349	1,236	-8.4%
Gross profit margin	%	13.3	11.9
Effective tax rate	%	23.8	25.1
Net profit margin	%	6.6	6.0

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UTTAM SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 4.4%.
• Long-term debt down at Rs 251 million as compared to Rs 869 million during FY22, a fall of 71.1%.
• Current assets rose 9% and stood at Rs 10 billion, while fixed assets rose 2% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 6%.

UTTAM SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,628	5,764	24.6
Current Liabilities	Rs m	8,932	9,323	4.4
Long-term Debt	Rs m	869	251	-71.1
Total Liabilities	Rs m	15,699	16,592	5.7
Current assets	Rs m	8,871	9,638	8.6
Fixed Assets	Rs m	6,826	6,953	1.9
Total Assets	Rs m	15,699	16,592	5.7

UTTAM SUGAR Cash Flow Statement Analysis

• UTTAM SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -500 million, an improvement of 78.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -22 million from the Rs 60 million net cash flows seen during FY22.

UTTAM SUGAR 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	3,202	1,581	-50.6%
Cash Flow from Investing Activities	Rs m	-281	-500	-
Cash Flow from Financing Activities	Rs m	-2,861	-1,103	-
Net Cash Flow	Rs m	60	-22	-

Current Valuations for UTTAM SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.4, an decline from the EPS of Rs 35.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 359.5, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.3 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	533.4	539.8
TTM Earnings per share	Rs	35.4	32.4
Diluted earnings per share	Rs	35.4	32.4
Price to Cash Flow	x	4.9	6.3
TTM P/E ratio	x	6.1	11.7
Price / Book Value ratio	x	1.6	1.8
Market Cap	Rs m	7,538	10,132
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for UTTAM SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x 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 4.1x during FY23, from 3.4x 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 21.4% during FY23, from 29.2% 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 36.1% during FY23, from 45.9% 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 10.6% during FY23, from 13.4% 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	1.0	1.0
Debtors’ Days	Days	110	85
Interest coverage	x	3.4	4.1
Debt to equity ratio	x	0.2	0.0
Return on assets	%	13.4	10.6
Return on equity	%	29.2	21.4
Return on capital employed	%	45.9	36.1

To see how UTTAM SUGAR has performed over the last 5 years, please visit here.

UTTAM SUGAR Share Price Performance

Over the last one year, UTTAM SUGAR share price has moved up from Rs 260.3 to Rs 359.5, registering a gain of Rs 99.2 or around 38.1%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for UTTAM SUGAR and quarterly results for UTTAM SUGAR)