VISHWARAJ SUGAR INDUSTRIES 2022-23 Annual Report Analysis

Wed, 30 Aug

VISHWARAJ SUGAR INDUSTRIES 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.

VISHWARAJ SUGAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 31.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY23 as against 18.8% in FY22.
• Depreciation charges increased by 3.0% and finance costs decreased by 14.7% YoY, respectively.
• Other income declined by 57.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 12.8% in FY22 to 3.8% in FY23.

VISHWARAJ SUGAR INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,688	6,165	31.5%
Other income	Rs m	68	29	-57.8%
Total Revenues	Rs m	4,755	6,194	30.2%
Gross profit	Rs m	882	662	-24.9%
Depreciation	Rs m	155	160	3.0%
Interest	Rs m	323	275	-14.7%
Profit before tax	Rs m	472	255	-45.9%
Tax	Rs m	-130	490	NA
Profit after tax	Rs m	602	-234	NA
Gross profit margin	%	18.8	10.7
Effective tax rate	%	-27.5	191.8
Net profit margin	%	12.8	-3.8

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VISHWARAJ SUGAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -11.2%.
• Long-term debt down at Rs 824 million as compared to Rs 897 million during FY22, a fall of 8.2%.
• Current assets fell 7% and stood at Rs 4 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 7 billion as against Rs 8 billion during FY22, thereby witnessing a fall of 4%.

VISHWARAJ SUGAR INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,826	2,556	-9.6
Current Liabilities	Rs m	3,944	3,500	-11.2
Long-term Debt	Rs m	897	824	-8.2
Total Liabilities	Rs m	7,560	7,262	-3.9
Current assets	Rs m	4,500	4,183	-7.0
Fixed Assets	Rs m	3,060	3,079	0.6
Total Assets	Rs m	7,560	7,262	-3.9

VISHWARAJ SUGAR INDUSTRIES Cash Flow Statement Analysis

• VISHWARAJ SUGAR INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 521 million, an improvement of 47.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -184 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -443 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -106 million from the Rs -357 million net cash flows seen during FY22.

VISHWARAJ SUGAR INDUSTRIES 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	352	521	47.9%
Cash Flow from Investing Activities	Rs m	-328	-184	-
Cash Flow from Financing Activities	Rs m	-381	-443	-
Net Cash Flow	Rs m	-357	-106	-

Current Valuations for VISHWARAJ SUGAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.2, an decline from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.4, stands at -14.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -45.7 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	25.0	32.8
TTM Earnings per share	Rs	3.2	-1.2
Diluted earnings per share	Rs	3.2	-1.2
Price to Cash Flow	x	5.0	-45.7
TTM P/E ratio	x	6.7	-14.1
Price / Book Value ratio	x	7.8	1.3
Market Cap	Rs m	21,923	3,411
Dividends per share (Unadj.)	Rs	0.2	0.1

Ratio Analysis for VISHWARAJ SUGAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x 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 deteriorated and stood at 1.9x during FY23, from 2.5x 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 -9.2% during FY23, from 21.3% 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 15.7% during FY23, from 21.3% 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 0.6% during FY23, from 12.2% 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	1.1	1.2
Debtors’ Days	Days	251	256
Interest coverage	x	2.5	1.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	12.2	0.6
Return on equity	%	21.3	-9.2
Return on capital employed	%	21.3	15.7

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

VISHWARAJ SUGAR INDUSTRIES Share Price Performance

Over the last one year, VISHWARAJ SUGAR INDUSTRIES share price has moved up from Rs 17.1 to Rs 18.4, registering a gain of Rs 1.4 or around 7.9%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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