AVT NATURAL 2023-24 Annual Report Analysis

Tue, 23 Jul

AVT NATURAL 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.

AVT NATURAL Income Statement Analysis

• Operating income during the year fell 11.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY24 as against 20.8% in FY23.
• Depreciation charges increased by 3.7% and finance costs increased by 30.0% YoY, respectively.
• Other income grew by 434.4% YoY.
• Net profit for the year declined by 31.2% YoY.
• Net profit margins during the year declined from 13.3% in FY23 to 10.3% in FY24.

AVT NATURAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,822	5,173	-11.1%
Other income	Rs m	23	126	434.4%
Total Revenues	Rs m	5,845	5,298	-9.4%
Gross profit	Rs m	1,209	794	-34.4%
Depreciation	Rs m	134	139	3.7%
Interest	Rs m	54	70	30.0%
Profit before tax	Rs m	1,045	711	-32.0%
Tax	Rs m	271	178	-34.5%
Profit after tax	Rs m	774	533	-31.2%
Gross profit margin	%	20.8	15.3
Effective tax rate	%	26.0	25.0
Net profit margin	%	13.3	10.3

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AVT NATURAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 766 million in FY23, thereby witnessing an increase of 47.3%.
• Long-term debt down at Rs 50 million as compared to Rs 81 million during FY23, a fall of 38.5%.
• Current assets rose 16% and stood at Rs 5 billion, while fixed assets rose 8% and stood at Rs 875 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 15%.

AVT NATURAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,303	4,695	9.1
Current Liabilities	Rs m	766	1,128	47.3
Long-term Debt	Rs m	81	50	-38.5
Total Liabilities	Rs m	5,218	5,981	14.6
Current assets	Rs m	4,406	5,106	15.9
Fixed Assets	Rs m	813	875	7.6
Total Assets	Rs m	5,218	5,981	14.6

AVT NATURAL Cash Flow Statement Analysis

• AVT NATURAL's cash flow from operating activities (CFO) during FY24 stood at Rs 985 million, an improvement of 92.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -782 million, an improvement of 112.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -151 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 53 million from the Rs 59 million net cash flows seen during FY23.

AVT NATURAL 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	512	985	92.5%
Cash Flow from Investing Activities	Rs m	-368	-782	-
Cash Flow from Financing Activities	Rs m	-85	-151	-
Net Cash Flow	Rs m	59	53	-9.7%

Current Valuations for AVT NATURAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.6, stands at 24.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 21.8 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	38.2	34.0
TTM Earnings per share	Rs	5.1	3.5
Diluted earnings per share	Rs	5.1	3.5
Price to Cash Flow	x	13.3	21.8
TTM P/E ratio	x	15.6	24.5
Price / Book Value ratio	x	3.7	3.1
Market Cap	Rs m	15,933	14,641
Dividends per share (Unadj.)	Rs	1.0	0.8

Ratio Analysis for AVT NATURAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.5x during FY24, from 5.8x 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 deteriorated and stood at 11.2x during FY24, from 20.5x 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 11.3% during FY24, from 18.0% 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 16.4% during FY24, from 25.1% 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 10.1% during FY24, from 15.9% 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	5.8	4.5
Debtors’ Days	Days	761	776
Interest coverage	x	20.5	11.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	10.1
Return on equity	%	18.0	11.3
Return on capital employed	%	25.1	16.4

To see how AVT NATURAL has performed over the last 5 years, please visit here.

AVT NATURAL Share Price Performance

Over the last one year, AVT NATURAL share price has moved down from Rs 85.7 to Rs 85.6, registering a loss of Rs 0.1 or around 0.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 22,429.0 (up 2.0%). Over the last one year it has moved up from 19,335.8 to 22,429.0, a gain of 3,093 points (up 16.0%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for AVT NATURAL and quarterly results for AVT NATURAL)