VIDHI SPECIALTY FOOD INGREDIENTS 2021-22 Annual Report Analysis

Mon, 19 Sep

VIDHI SPECIALTY FOOD INGREDIENTS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement Analysis

• Operating income during the year rose 101.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.8% in FY22 as against 20.0% in FY21.
• Depreciation charges increased by 6.5% and finance costs increased by 63.6% YoY, respectively.
• Other income declined by 13.1% YoY.
• Net profit for the year grew by 60.2% YoY.
• Net profit margins during the year declined from 13.7% in FY21 to 10.9% in FY22.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,664	5,371	101.6%
Other income	Rs m	16	14	-13.1%
Total Revenues	Rs m	2,680	5,384	100.9%
Gross profit	Rs m	533	846	58.8%
Depreciation	Rs m	29	31	6.5%
Interest	Rs m	24	40	63.6%
Profit before tax	Rs m	496	790	59.3%
Tax	Rs m	130	204	56.9%
Profit after tax	Rs m	366	586	60.2%
Gross profit margin	%	20.0	15.8
Effective tax rate	%	26.2	25.8
Net profit margin	%	13.7	10.9

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VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 718 million in FY21, thereby witnessing an increase of 115.8%.
• Long-term debt stood at Rs 160 million as compared to Rs 19 million during FY21, a growth of 763.8%.
• Current assets rose 61% and stood at Rs 3 billion, while fixed assets rose 81% and stood at Rs 839 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 65%.

VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,613	2,170	34.5
Current Liabilities	Rs m	718	1,549	115.8
Long-term Debt	Rs m	19	160	763.8
Total Liabilities	Rs m	2,374	3,911	64.8
Current assets	Rs m	1,910	3,072	60.9
Fixed Assets	Rs m	464	839	80.7
Total Assets	Rs m	2,374	3,911	64.8

VIDHI SPECIALTY FOOD INGREDIENTS Cash Flow Statement Analysis

• VIDHI SPECIALTY FOOD INGREDIENTS's cash flow from operating activities (CFO) during FY22 stood at Rs -215 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -403 million, an improvement of 1,318.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 526 million, an improvement of 768% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -91 million from the Rs 5 million net cash flows seen during FY21.

VIDHI SPECIALTY FOOD INGREDIENTS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	112	-215	-
Cash Flow from Investing Activities	Rs m	-28	-403	-
Cash Flow from Financing Activities	Rs m	-79	526	-
Net Cash Flow	Rs m	5	-91	-

Current Valuations for VIDHI SPECIALTY FOOD INGREDIENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an improvement from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 415.9, stands at 37.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	53.3	107.5
TTM Earnings per share	Rs	7.3	11.7
Diluted earnings per share	Rs	7.3	11.7
Price to Cash Flow	x	26.9	25.0
TTM P/E ratio	x	29.1	37.0
Price / Book Value ratio	x	4.0	7.1
Market Cap	Rs m	6,530	15,442
Dividends per share (Unadj.)	Rs	0.8	0.4

Ratio Analysis for VIDHI SPECIALTY FOOD INGREDIENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.7x during FY21. 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 21.0x during FY22, from 21.5x during FY21. 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 27.0% during FY22, from 22.7% during FY22. 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 35.6% during FY22, from 31.8% during FY21. 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 16.0% during FY22, from 16.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.7	2.0
Debtors’ Days	Days	1,296	1,020
Interest coverage	x	21.5	21.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	16.4	16.0
Return on equity	%	22.7	27.0
Return on capital employed	%	31.8	35.6

To see how VIDHI SPECIALTY FOOD INGREDIENTS has performed over the last 5 years, please visit here.

VIDHI SPECIALTY FOOD INGREDIENTS Share Price Performance

Over the last one year, VIDHI SPECIALTY FOOD INGREDIENTS share price has moved up from Rs 367.5 to Rs 415.9, registering a gain of Rs 48.4 or around 13.2%.

Overall, the S&P BSE SENSEX is up 0.6% over the year.

(To know more, check out historical annual results for VIDHI SPECIALTY FOOD INGREDIENTS and quarterly results for VIDHI SPECIALTY FOOD INGREDIENTS)

Read: Latest Annual Report Analysis of VIDHI SPECIALTY FOOD INGREDIENTS