ADF FOODS 2023-24 Annual Report Analysis

Thu, 11 Jul

ADF FOODS 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.

ADF FOODS Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY24 as against 17.9% in FY23.
• Depreciation charges increased by 13.5% and finance costs decreased by 11.9% YoY, respectively.
• Other income declined by 1.3% YoY.
• Net profit for the year grew by 32.1% YoY.
• Net profit margins during the year grew from 12.4% in FY23 to 14.2% in FY24.

ADF FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,503	5,203	15.6%
Other income	Rs m	112	111	-1.3%
Total Revenues	Rs m	4,615	5,314	15.1%
Gross profit	Rs m	806	1,049	30.1%
Depreciation	Rs m	137	156	13.5%
Interest	Rs m	27	23	-11.9%
Profit before tax	Rs m	755	981	30.0%
Tax	Rs m	196	243	23.8%
Profit after tax	Rs m	559	738	32.1%
Gross profit margin	%	17.9	20.2
Effective tax rate	%	26.0	24.8
Net profit margin	%	12.4	14.2

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ADF FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 526 million as compared to Rs 430 million in FY23, thereby witnessing an increase of 22.3%.
• Current assets rose 6% and stood at Rs 4 billion, while fixed assets rose 4% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 6%.

ADF FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,192	4,411	5.2
Current Liabilities	Rs m	430	526	22.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,203	5,496	5.6
Current assets	Rs m	3,293	3,505	6.4
Fixed Assets	Rs m	1,910	1,991	4.2
Total Assets	Rs m	5,203	5,496	5.6

ADF FOODS Cash Flow Statement Analysis

• ADF FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 698 million, an improvement of 38.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 164 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -634 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 198 million from the Rs -144 million net cash flows seen during FY23.

ADF FOODS 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	505	698	38.2%
Cash Flow from Investing Activities	Rs m	-629	164	-
Cash Flow from Financing Activities	Rs m	-48	-634	-
Net Cash Flow	Rs m	-144	198	-

Current Valuations for ADF FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 25.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 234.3, stands at 34.9 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 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 24.9 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	205.0	47.4
TTM Earnings per share	Rs	25.4	6.7
Diluted earnings per share	Rs	5.1	6.7
Price to Cash Flow	x	23.5	24.9
TTM P/E ratio	x	29.2	34.9
Price / Book Value ratio	x	4.0	5.0
Market Cap	Rs m	16,832	22,271
Dividends per share (Unadj.)	Rs	1.0	5.2

Ratio Analysis for ADF FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.7x during FY24, from 7.7x 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 improved and stood at 43.0x during FY24, from 29.4x 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 improved and stood at 16.7% during FY24, from 13.3% 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 improved and stood at 22.8% during FY24, from 18.6% 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 improved and stood at 13.9% during FY24, from 11.2% 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	7.7	6.7
Debtors’ Days	Days	764	761
Interest coverage	x	29.4	43.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	13.9
Return on equity	%	13.3	16.7
Return on capital employed	%	18.6	22.8

To see how ADF FOODS has performed over the last 5 years, please visit here.

ADF FOODS Share Price Performance

Over the last one year, ADF FOODS share price has moved up from Rs 210.3 to Rs 234.3, registering a gain of Rs 24.0 or around 11.4%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for ADF FOODS and quarterly results for ADF FOODS)