INDIA PESTICIDES 2022-23 Annual Report Analysis

Thu, 10 Aug

INDIA PESTICIDES 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.

INDIA PESTICIDES Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.3% in FY23 as against 29.9% in FY22.
• Depreciation charges increased by 33.8% and finance costs increased by 4.4% YoY, respectively.
• Other income grew by 0.6% YoY.
• Net profit for the year declined by 9.3% YoY.
• Net profit margins during the year declined from 22.1% in FY22 to 16.2% in FY23.

INDIA PESTICIDES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,161	8,849	23.6%
Other income	Rs m	132	132	0.6%
Total Revenues	Rs m	7,293	8,982	23.2%
Gross profit	Rs m	2,138	1,969	-7.9%
Depreciation	Rs m	85	114	33.8%
Interest	Rs m	69	72	4.4%
Profit before tax	Rs m	2,116	1,916	-9.4%
Tax	Rs m	536	484	-9.7%
Profit after tax	Rs m	1,580	1,432	-9.3%
Gross profit margin	%	29.9	22.3
Effective tax rate	%	25.3	25.3
Net profit margin	%	22.1	16.2

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INDIA PESTICIDES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -7.7%.
• Long-term debt down at Rs 17 million as compared to Rs 36 million during FY22, a fall of 52.0%.
• Current assets rose 5% and stood at Rs 6 billion, while fixed assets rose 39% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 14%.

INDIA PESTICIDES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,379	7,731	21.2
Current Liabilities	Rs m	1,867	1,725	-7.7
Long-term Debt	Rs m	36	17	-52.0
Total Liabilities	Rs m	8,453	9,670	14.4
Current assets	Rs m	6,036	6,311	4.6
Fixed Assets	Rs m	2,417	3,359	39.0
Total Assets	Rs m	8,453	9,670	14.4

INDIA PESTICIDES Cash Flow Statement Analysis

• INDIA PESTICIDES's cash flow from operating activities (CFO) during FY23 stood at Rs 454 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -243 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -248 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -37 million from the Rs 136 million net cash flows seen during FY22.

INDIA PESTICIDES 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	758	454	-40.2%
Cash Flow from Investing Activities	Rs m	-1,334	-243	-
Cash Flow from Financing Activities	Rs m	711	-248	-
Net Cash Flow	Rs m	136	-37	-

Current Valuations for INDIA PESTICIDES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.4, an decline from the EPS of Rs 13.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 210.7, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 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	62.2	76.8
TTM Earnings per share	Rs	13.7	12.4
Diluted earnings per share	Rs	13.7	12.4
Price to Cash Flow	x	18.6	19.6
TTM P/E ratio	x	19.6	20.7
Price / Book Value ratio	x	5.7	3.9
Market Cap	Rs m	36,219	30,369
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for INDIA PESTICIDES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY23, from 3.2x 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 27.8x during FY23, from 31.9x 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 18.5% during FY23, from 24.8% 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 25.7% during FY23, from 34.0% 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 15.6% during FY23, from 19.5% 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	3.2	3.7
Debtors’ Days	Days	126	108
Interest coverage	x	31.9	27.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.5	15.6
Return on equity	%	24.8	18.5
Return on capital employed	%	34.0	25.7

To see how INDIA PESTICIDES has performed over the last 5 years, please visit here.

INDIA PESTICIDES Share Price Performance

Over the last one year, INDIA PESTICIDES share price has moved down from Rs 280.9 to Rs 210.7, registering a loss of Rs 70.2 or around 25.0%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for INDIA PESTICIDES and quarterly results for INDIA PESTICIDES)