AVANTI FEEDS 2023-24 Annual Report Analysis

Tue, 16 Jul

AVANTI FEEDS 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.

AVANTI FEEDS Income Statement Analysis

• Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.5% in FY24 as against 7.5% in FY23.
• Depreciation charges increased by 32.4% and finance costs decreased by 28.2% YoY, respectively.
• Other income grew by 48.9% YoY.
• Net profit for the year grew by 26.1% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 7.3% in FY24.

AVANTI FEEDS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	50,870	53,689	5.5%
Other income	Rs m	920	1,370	48.9%
Total Revenues	Rs m	51,790	55,059	6.3%
Gross profit	Rs m	3,813	4,590	20.4%
Depreciation	Rs m	426	564	32.4%
Interest	Rs m	39	28	-28.2%
Profit before tax	Rs m	4,268	5,369	25.8%
Tax	Rs m	1,145	1,430	24.9%
Profit after tax	Rs m	3,123	3,938	26.1%
Gross profit margin	%	7.5	8.5
Effective tax rate	%	26.8	26.6
Net profit margin	%	6.1	7.3

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AVANTI FEEDS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 8.5%.
• Long-term debt stood at Rs 139 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 13% and stood at Rs 25 billion, while fixed assets rose 13% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 13%.

AVANTI FEEDS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,955	23,655	12.9
Current Liabilities	Rs m	3,231	3,505	8.5
Long-term Debt	Rs m	0	139	0.0
Total Liabilities	Rs m	27,346	30,982	13.3
Current assets	Rs m	22,107	25,047	13.3
Fixed Assets	Rs m	5,239	5,935	13.3
Total Assets	Rs m	27,346	30,982	13.3

AVANTI FEEDS Cash Flow Statement Analysis

• AVANTI FEEDS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -604 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -211 million from the Rs -318 million net cash flows seen during FY23.

AVANTI FEEDS 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	4,512	2,630	-41.7%
Cash Flow from Investing Activities	Rs m	-4,175	-2,237	-
Cash Flow from Financing Activities	Rs m	-655	-604	-
Net Cash Flow	Rs m	-318	-211	-

Current Valuations for AVANTI FEEDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.9, an improvement from the EPS of Rs 22.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 601.2, stands at 20.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 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	373.4	394.0
TTM Earnings per share	Rs	22.9	28.9
Diluted earnings per share	Rs	22.9	28.9
Price to Cash Flow	x	13.0	14.2
TTM P/E ratio	x	14.8	20.8
Price / Book Value ratio	x	2.8	2.7
Market Cap	Rs m	57,843	64,076
Dividends per share (Unadj.)	Rs	6.3	6.8

Ratio Analysis for AVANTI FEEDS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.1x during FY24, from 6.8x 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 193.1x during FY24, from 110.6x 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 16.6% during FY24, from 14.9% 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 22.7% during FY24, from 20.6% 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 12.8% during FY24, from 11.6% 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	6.8	7.1
Debtors’ Days	Days	87	98
Interest coverage	x	110.6	193.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	12.8
Return on equity	%	14.9	16.6
Return on capital employed	%	20.6	22.7

To see how AVANTI FEEDS has performed over the last 5 years, please visit here.

AVANTI FEEDS Share Price Performance

Over the last one year, AVANTI FEEDS share price has moved up from Rs 413.2 to Rs 601.2, registering a gain of Rs 188.0 or around 45.5%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for AVANTI FEEDS and quarterly results for AVANTI FEEDS)