APEX FROZEN FOODS 2023-24 Annual Report Analysis

Mon, 23 Sep

APEX FROZEN 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.

APEX FROZEN FOODS Income Statement Analysis

• Operating income during the year fell 24.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.1% in FY24 as against 7.8% in FY23.
• Depreciation charges decreased by 23.7% and finance costs decreased by 31.6% YoY, respectively.
• Other income grew by 85.2% YoY.
• Net profit for the year declined by 59.3% YoY.
• Net profit margins during the year declined from 3.4% in FY23 to 1.8% in FY24.

APEX FROZEN FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,703	8,041	-24.9%
Other income	Rs m	17	32	85.2%
Total Revenues	Rs m	10,720	8,073	-24.7%
Gross profit	Rs m	830	412	-50.3%
Depreciation	Rs m	194	148	-23.7%
Interest	Rs m	147	101	-31.6%
Profit before tax	Rs m	506	196	-61.4%
Tax	Rs m	148	50	-66.4%
Profit after tax	Rs m	359	146	-59.3%
Gross profit margin	%	7.8	5.1
Effective tax rate	%	29.1	25.4
Net profit margin	%	3.4	1.8

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APEX FROZEN FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 5.8%.
• Long-term debt stood at Rs 74 million as compared to Rs 28 million during FY23, a growth of 163.6%.
• Current assets rose 9% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 3%.

APEX FROZEN FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,900	4,971	1.4
Current Liabilities	Rs m	1,139	1,206	5.8
Long-term Debt	Rs m	28	74	163.6
Total Liabilities	Rs m	6,140	6,333	3.1
Current assets	Rs m	3,336	3,626	8.7
Fixed Assets	Rs m	2,803	2,708	-3.4
Total Assets	Rs m	6,140	6,333	3.1

APEX FROZEN FOODS Cash Flow Statement Analysis

• APEX FROZEN FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 112 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -83 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -16 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 13 million from the Rs 7 million net cash flows seen during FY23.

APEX FROZEN 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	1,212	112	-90.8%
Cash Flow from Investing Activities	Rs m	-218	-83	-
Cash Flow from Financing Activities	Rs m	-987	-16	-
Net Cash Flow	Rs m	7	13	104.0%

Current Valuations for APEX FROZEN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 252.3, stands at 53.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 25.3 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	342.5	257.3
TTM Earnings per share	Rs	11.5	4.7
Diluted earnings per share	Rs	11.5	4.7
Price to Cash Flow	x	10.9	25.3
TTM P/E ratio	x	16.8	53.4
Price / Book Value ratio	x	1.8	1.5
Market Cap	Rs m	8,594	7,428
Dividends per share (Unadj.)	Rs	2.5	2.0

Ratio Analysis for APEX FROZEN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY24, from 2.9x 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 2.9x during FY24, from 4.4x 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 declined and down at 2.9% during FY24, from 7.3% 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 declined and down at 5.9% during FY24, from 13.3% 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 3.9% during FY24, from 8.2% 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	2.9	3.0
Debtors’ Days	Days	382	485
Interest coverage	x	4.4	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	3.9
Return on equity	%	7.3	2.9
Return on capital employed	%	13.3	5.9

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

APEX FROZEN FOODS Share Price Performance

Over the last one year, APEX FROZEN FOODS share price has moved up from Rs 223.8 to Rs 252.3, registering a gain of Rs 28.5 or around 12.7%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

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