ZUARI AGRO 2022-23 Annual Report Analysis

Tue, 17 Oct

ZUARI AGRO 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.

ZUARI AGRO Income Statement Analysis

• Operating income during the year rose 26.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 122.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.2% in FY23 as against 11.0% in FY22.
• Depreciation charges increased by 16.3% and finance costs increased by 19.7% YoY, respectively.
• Other income grew by 56.4% YoY.
• Net profit for the year grew by 232.7% YoY.
• Net profit margins during the year grew from 4.6% in FY22 to 12.2% in FY23.

ZUARI AGRO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	35,898	45,526	26.8%
Other income	Rs m	605	946	56.4%
Total Revenues	Rs m	36,503	46,473	27.3%
Gross profit	Rs m	3,935	8,738	122.1%
Depreciation	Rs m	675	785	16.3%
Interest	Rs m	1,726	2,066	19.7%
Profit before tax	Rs m	2,138	6,834	219.6%
Tax	Rs m	473	1,291	173.2%
Profit after tax	Rs m	1,666	5,543	232.7%
Gross profit margin	%	11.0	19.2
Effective tax rate	%	22.1	18.9
Net profit margin	%	4.6	12.2

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ZUARI AGRO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 22 billion as compared to Rs 29 billion in FY22, thereby witnessing an decrease of -24.4%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY22, a growth of 9.9%.
• Current assets fell 9% and stood at Rs 18 billion, while fixed assets rose 12% and stood at Rs 33 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 50 billion as against Rs 62 billion during FY22, thereby witnessing a fall of 18%.

ZUARI AGRO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,670	15,812	330.8
Current Liabilities	Rs m	29,200	22,071	-24.4
Long-term Debt	Rs m	5,067	5,569	9.9
Total Liabilities	Rs m	61,925	50,498	-18.5
Current assets	Rs m	19,571	17,881	-8.6
Fixed Assets	Rs m	29,166	32,555	11.6
Total Assets	Rs m	61,925	50,498	-18.5

ZUARI AGRO Cash Flow Statement Analysis

• ZUARI AGRO's cash flow from operating activities (CFO) during FY23 stood at Rs 948 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY22.

ZUARI AGRO 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	5,714	948	-83.4%
Cash Flow from Investing Activities	Rs m	-1,372	4,259	-
Cash Flow from Financing Activities	Rs m	-2,960	-6,971	-
Net Cash Flow	Rs m	1,382	-1,763	-

Current Valuations for ZUARI AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 131.8, an improvement from the EPS of Rs 39.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 158.8, stands at 0.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 1.1 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	853.5	1,082.4
TTM Earnings per share	Rs	39.6	131.8
Diluted earnings per share	Rs	39.6	131.8
Price to Cash Flow	x	2.4	1.1
TTM P/E ratio	x	89.3	0.7
Price / Book Value ratio	x	1.4	0.4
Market Cap	Rs m	5,093	7,035
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZUARI AGRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.7x 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 4.3x during FY23, from 2.2x 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 35.1% during FY23, from 45.4% 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 41.6% during FY23, from 44.2% 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 improved and stood at 15.1% during FY23, from 5.5% 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	0.7	0.8
Debtors’ Days	Days	644	626
Interest coverage	x	2.2	4.3
Debt to equity ratio	x	1.4	0.4
Return on assets	%	5.5	15.1
Return on equity	%	45.4	35.1
Return on capital employed	%	44.2	41.6

To see how ZUARI AGRO has performed over the last 5 years, please visit here.

ZUARI AGRO Share Price Performance

Over the last one year, ZUARI AGRO share price has moved down from Rs 185.1 to Rs 158.8, registering a loss of Rs 26.3 or around 14.2%.

Overall, the S&P BSE SENSEX is up 16.1% over the year.

(To know more, check out historical annual results for ZUARI AGRO and quarterly results for ZUARI AGRO)