WARDWIZARD FOODS AND BEVERAGES 2022-23 Annual Report Analysis

Wed, 28 Feb

WARDWIZARD FOODS AND BEVERAGES 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.

WARDWIZARD FOODS AND BEVERAGES Income Statement Analysis

• Operating income during the year rose 0.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 94.9% in FY23 as against 0.0% in FY22.
• Depreciation charges increased by 7038.5% and finance costs decreased by 71.9% YoY, respectively.
• Other income declined by 42.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 0.0% in FY22 to 0.0% in FY23.

WARDWIZARD FOODS AND BEVERAGES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	0	78	0.0%
Other income	Rs m	3	2	-42.9%
Total Revenues	Rs m	3	80	2,281.3%
Gross profit	Rs m	-4	-74	NA
Depreciation	Rs m	0	9	7,038.5%
Interest	Rs m	1	0	-71.9%
Profit before tax	Rs m	-2	-82	NA
Tax	Rs m	0	8	0.0
Profit after tax	Rs m	-2	-89	NA
Gross profit margin	%	0.0	-94.9
Effective tax rate	%	0.0	-9.3
Net profit margin	%	0.0	0.0

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WARDWIZARD FOODS AND BEVERAGES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 58 million as compared to Rs 4 million in FY22, thereby witnessing an increase of 1225.5%.
• Long-term debt stood at Rs 297 million as compared to Rs 28 million during FY22, a growth of 967.4%.
• Current assets rose 811% and stood at Rs 652 million, while fixed assets rose 81% and stood at Rs 903 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 571 million during FY22, thereby witnessing a growth of 172%.

WARDWIZARD FOODS AND BEVERAGES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	542	885	63.1
Current Liabilities	Rs m	4	58	1,225.5
Long-term Debt	Rs m	28	297	967.4
Total Liabilities	Rs m	571	1,555	172.2
Current assets	Rs m	72	652	810.8
Fixed Assets	Rs m	500	903	80.7
Total Assets	Rs m	571	1,555	172.2

WARDWIZARD FOODS AND BEVERAGES Cash Flow Statement Analysis

• WARDWIZARD FOODS AND BEVERAGES's cash flow from operating activities (CFO) during FY23 stood at Rs -495 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -270 million, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 253 million from the Rs 0 million net cash flows seen during FY22.

WARDWIZARD FOODS AND BEVERAGES 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	0	-495	-
Cash Flow from Investing Activities	Rs m	0	-270	-
Cash Flow from Financing Activities	Rs m	0	1,018	0.0%
Net Cash Flow	Rs m	0	253	114,845.5%

Current Valuations for WARDWIZARD FOODS AND BEVERAGES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.5, stands at -92.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.3 times, while the price to sales ratio stands at 81.3 times.
• The company's price to cash flow (P/CF) ratio stood at -137.1 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	0.0	0.4
TTM Earnings per share	Rs	0.0	-0.5
Diluted earnings per share	Rs	0.0	-0.4
Price to Cash Flow	x	-10,510.1	-137.1
TTM P/E ratio	x	-9,911.0	-92.1
Price / Book Value ratio	x	10.5	12.4
Market Cap	Rs m	5,702	10,980
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WARDWIZARD FOODS AND BEVERAGES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 11.3x during FY23, from 16.5x 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 deteriorated and stood at -326.0x during FY23, from -1.3x 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 declined and down at -10.1% during FY23, from -0.4% 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 declined and down at -6.9% during FY23, from -0.2% 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 -5.7% during FY23, from -0.2% 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	16.5	11.3
Debtors’ Days	Days	0	2,554
Interest coverage	x	-1.3	-326.0
Debt to equity ratio	x	0.1	0.3
Return on assets	%	-0.2	-5.7
Return on equity	%	-0.4	-10.1
Return on capital employed	%	-0.2	-6.9

To see how WARDWIZARD FOODS AND BEVERAGES has performed over the last 5 years, please visit here.

WARDWIZARD FOODS AND BEVERAGES Share Price Performance

Over the last one year, WARDWIZARD FOODS AND BEVERAGES share price has moved down from Rs 78.2 to Rs 32.5, registering a loss of Rs 45.7 or around 58.5%.

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

(To know more, check out historical annual results for WARDWIZARD FOODS AND BEVERAGES and quarterly results for WARDWIZARD FOODS AND BEVERAGES)