ZUARI GLOBAL 2022-23 Annual Report Analysis

Mon, 26 Feb

ZUARI GLOBAL 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 GLOBAL Income Statement Analysis

• Operating income during the year rose 32.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 850.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 45.2% in FY23 as against 6.3% in FY22.
• Depreciation charges increased by 20.7% and finance costs decreased by 6.7% YoY, respectively.
• Other income declined by 19.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.8% in FY22 to 31.9% in FY23.

ZUARI GLOBAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,218	9,551	32.3%
Other income	Rs m	2,254	1,823	-19.1%
Total Revenues	Rs m	9,472	11,374	20.1%
Gross profit	Rs m	454	4,320	850.9%
Depreciation	Rs m	227	274	20.7%
Interest	Rs m	2,927	2,732	-6.7%
Profit before tax	Rs m	-446	3,138	NA
Tax	Rs m	-98	86	NA
Profit after tax	Rs m	-348	3,051	NA
Gross profit margin	%	6.3	45.2
Effective tax rate	%	21.9	2.7
Net profit margin	%	-4.8	31.9

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ZUARI GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 16 billion as compared to Rs 14 billion in FY22, thereby witnessing an increase of 12.7%.
• Long-term debt stood at Rs 18 billion as compared to Rs 17 billion during FY22, a growth of 3.3%.
• Current assets rose 27% and stood at Rs 24 billion, while fixed assets fell 22% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 58 billion as against Rs 62 billion during FY22, thereby witnessing a fall of 7%.

ZUARI GLOBAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	29,730	23,950	-19.4
Current Liabilities	Rs m	14,204	16,010	12.7
Long-term Debt	Rs m	17,173	17,735	3.3
Total Liabilities	Rs m	62,426	58,067	-7.0
Current assets	Rs m	19,135	24,273	26.9
Fixed Assets	Rs m	43,292	33,793	-21.9
Total Assets	Rs m	62,426	58,067	-7.0

ZUARI GLOBAL Cash Flow Statement Analysis

• ZUARI GLOBAL's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 337.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -886 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 219 million from the Rs 440 million net cash flows seen during FY22.

ZUARI GLOBAL 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	615	2,691	337.4%
Cash Flow from Investing Activities	Rs m	693	-1,586	-
Cash Flow from Financing Activities	Rs m	-869	-886	-
Net Cash Flow	Rs m	440	219	-50.2%

Current Valuations for ZUARI GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 102.5, an improvement from the EPS of Rs -11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.6, stands at -4.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.4 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	245.2	320.7
TTM Earnings per share	Rs	-11.8	102.5
Diluted earnings per share	Rs	-11.7	102.5
Price to Cash Flow	x	-43.8	1.4
TTM P/E ratio	x	-13.3	-4.3
Price / Book Value ratio	x	0.1	0.2
Market Cap	Rs m	4,079	4,785
Dividends per share (Unadj.)	Rs	3.0	1.0

Ratio Analysis for ZUARI GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x 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 2.1x during FY23, from 0.8x 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 improved and stood at 12.7% during FY23, from -1.2% 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 improved and stood at 14.1% during FY23, from 5.3% 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 improved and stood at 10.0% during FY23, from 4.1% 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	1.3	1.5
Debtors’ Days	Days	367	306
Interest coverage	x	0.8	2.1
Debt to equity ratio	x	0.6	0.7
Return on assets	%	4.1	10.0
Return on equity	%	-1.2	12.7
Return on capital employed	%	5.3	14.1

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

ZUARI GLOBAL Share Price Performance

Over the last one year, ZUARI GLOBAL share price has moved down from Rs 177.3 to Rs 108.6, registering a loss of Rs 68.7 or around 38.7%.

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

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