ADANI WILMAR 2023-24 Annual Report Analysis

Mon, 3 Jun

ADANI WILMAR has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ADANI WILMAR Income Statement Analysis

• Operating income during the year fell 15.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.2% in FY24 as against 2.9% in FY23.
• Depreciation charges decreased by 10.3% and finance costs decreased by 13.0% YoY, respectively.
• Other income grew by 11.9% YoY.
• Net profit for the year declined by 49.8% YoY.
• Net profit margins during the year declined from 1.0% in FY23 to 0.6% in FY24.

ADANI WILMAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	581,848	492,426	-15.4%
Other income	Rs m	2,614	2,925	11.9%
Total Revenues	Rs m	584,462	495,351	-15.2%
Gross profit	Rs m	16,610	10,847	-34.7%
Depreciation	Rs m	3,585	3,216	-10.3%
Interest	Rs m	7,749	6,744	-13.0%
Profit before tax	Rs m	7,889	3,812	-51.7%
Tax	Rs m	2,354	1,031	-56.2%
Profit after tax	Rs m	5,536	2,782	-49.8%
Gross profit margin	%	2.9	2.2
Effective tax rate	%	29.8	27.0
Net profit margin	%	1.0	0.6

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ADANI WILMAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 95 billion as compared to Rs 117 billion in FY23, thereby witnessing an decrease of -18.6%.
• Current assets fell 16% and stood at Rs 122 billion, while fixed assets rose 2% and stood at Rs 66 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 188 billion as against Rs 210 billion during FY23, thereby witnessing a fall of 10%.

ADANI WILMAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	81,658	82,720	1.3
Current Liabilities	Rs m	116,871	95,147	-18.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	209,786	188,029	-10.4
Current assets	Rs m	145,319	122,213	-15.9
Fixed Assets	Rs m	64,415	65,510	1.7
Total Assets	Rs m	209,786	188,029	-10.4

ADANI WILMAR Cash Flow Statement Analysis

• ADANI WILMAR's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion, an improvement of 33% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 3 billion net cash flows seen during FY23.

ADANI WILMAR Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	6,633	3,664	-44.8%
Cash Flow from Investing Activities	Rs m	5,326	1,393	-73.8%
Cash Flow from Financing Activities	Rs m	-9,191	-6,194	-
Net Cash Flow	Rs m	2,678	-1,142	-

Current Valuations for ADANI WILMAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an decline from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 367.8, stands at 280.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 86.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	447.7	378.9
TTM Earnings per share	Rs	4.3	2.1
Diluted earnings per share	Rs	4.3	2.1
Price to Cash Flow	x	57.9	86.2
TTM P/E ratio	x	95.3	280.1
Price / Book Value ratio	x	9.6	6.2
Market Cap	Rs m	783,284	516,785
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI WILMAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x during FY23. 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 1.6x during FY24, from 2.0x during FY23. 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 3.4% during FY24, from 6.8% during FY24. 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 12.8% during FY24, from 19.2% during FY23. 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 5.1% during FY24, from 6.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	1	1
Interest coverage	x	2.0	1.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	5.1
Return on equity	%	6.8	3.4
Return on capital employed	%	19.2	12.8

To see how ADANI WILMAR has performed over the last 5 years, please visit here.

ADANI WILMAR Share Price Performance

Over the last one year, ADANI WILMAR share price has moved down from Rs 437.4 to Rs 367.8, registering a loss of Rs 69.7 or around 15.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,724.7 (up 1.0%). Over the last one year it has moved up from 18,349.0 to 19,724.7, a gain of 1,376 points (up 7.5%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for ADANI WILMAR and quarterly results for ADANI WILMAR)