BASANT AGRO TECH 2022-23 Annual Report Analysis

Thu, 26 Oct

BASANT AGRO TECH has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BASANT AGRO TECH Income Statement Analysis

• Operating income during the year rose 22.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY23 as against 6.8% in FY22.
• Depreciation charges increased by 22.4% and finance costs increased by 78.0% YoY, respectively.
• Other income grew by 424.2% YoY.
• Net profit for the year declined by 3.2% YoY.
• Net profit margins during the year declined from 4.2% in FY22 to 3.3% in FY23.

BASANT AGRO TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,482	5,493	22.6%
Other income	Rs m	2	9	424.2%
Total Revenues	Rs m	4,483	5,502	22.7%
Gross profit	Rs m	303	359	18.4%
Depreciation	Rs m	52	64	22.4%
Interest	Rs m	60	106	78.0%
Profit before tax	Rs m	194	199	2.7%
Tax	Rs m	4	15	312.7%
Profit after tax	Rs m	190	184	-3.2%
Gross profit margin	%	6.8	6.5
Effective tax rate	%	1.9	7.5
Net profit margin	%	4.2	3.3

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BASANT AGRO TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 6.5%.
• Long-term debt stood at Rs 290 million as compared to Rs 195 million during FY22, a growth of 48.4%.
• Current assets rose 10% and stood at Rs 3 billion, while fixed assets rose 14% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 11%.

BASANT AGRO TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,533	1,709	11.5
Current Liabilities	Rs m	1,990	2,120	6.5
Long-term Debt	Rs m	195	290	48.4
Total Liabilities	Rs m	3,738	4,144	10.9
Current assets	Rs m	2,716	2,976	9.5
Fixed Assets	Rs m	1,022	1,169	14.4
Total Assets	Rs m	3,738	4,144	10.9

BASANT AGRO TECH Cash Flow Statement Analysis

• BASANT AGRO TECH's cash flow from operating activities (CFO) during FY23 stood at Rs -201 million, an improvement of 110.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -204 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 404 million, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 3 million net cash flows seen during FY22.

BASANT AGRO TECH Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-95	-201	-
Cash Flow from Investing Activities	Rs m	-231	-204	-
Cash Flow from Financing Activities	Rs m	329	404	22.9%
Net Cash Flow	Rs m	3	0	-88.3%

Current Valuations for BASANT AGRO TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an decline from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.8, stands at 14.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	49.4	60.6
TTM Earnings per share	Rs	2.1	2.0
Diluted earnings per share	Rs	2.1	2.0
Price to Cash Flow	x	6.9	8.1
TTM P/E ratio	x	8.7	14.8
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	1,311	2,007
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for BASANT AGRO TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.4x during FY22. 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 FY23, from 4.2x during FY22. 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 10.8% during FY23, from 12.4% during FY23. 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 15.3% during FY23, from 14.7% during FY22. 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 7.0% during FY23, from 6.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	413	406
Interest coverage	x	4.2	2.9
Debt to equity ratio	x	0.1	0.2
Return on assets	%	6.7	7.0
Return on equity	%	12.4	10.8
Return on capital employed	%	14.7	15.3

To see how BASANT AGRO TECH has performed over the last 5 years, please visit here.

BASANT AGRO TECH Share Price Performance

Over the last one year, BASANT AGRO TECH share price has moved up from Rs 21.0 to Rs 21.8, registering a gain of Rs 0.8 or around 3.6%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for BASANT AGRO TECH and quarterly results for BASANT AGRO TECH)