BEST AGROLIFE 2023-24 Annual Report Analysis

Thu, 24 Oct

BEST AGROLIFE 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.

BEST AGROLIFE Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY24 as against 18.0% in FY23.
• Depreciation charges increased by 33.2% and finance costs increased by 60.6% YoY, respectively.
• Other income grew by 21.4% YoY.
• Net profit for the year declined by 44.7% YoY.
• Net profit margins during the year declined from 11.0% in FY23 to 5.7% in FY24.

BEST AGROLIFE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,457	18,733	7.3%
Other income	Rs m	26	32	21.4%
Total Revenues	Rs m	17,483	18,765	7.3%
Gross profit	Rs m	3,137	2,256	-28.1%
Depreciation	Rs m	245	326	33.2%
Interest	Rs m	389	624	60.6%
Profit before tax	Rs m	2,529	1,337	-47.1%
Tax	Rs m	608	274	-54.9%
Profit after tax	Rs m	1,921	1,063	-44.7%
Gross profit margin	%	18.0	12.0
Effective tax rate	%	24.0	20.5
Net profit margin	%	11.0	5.7

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BEST AGROLIFE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 45.9%.
• Long-term debt down at Rs 209 million as compared to Rs 340 million during FY23, a fall of 38.6%.
• Current assets rose 30% and stood at Rs 16 billion, while fixed assets rose 63% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 36%.

BEST AGROLIFE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,273	6,470	22.7
Current Liabilities	Rs m	9,037	13,186	45.9
Long-term Debt	Rs m	340	209	-38.6
Total Liabilities	Rs m	14,868	20,272	36.4
Current assets	Rs m	12,175	15,874	30.4
Fixed Assets	Rs m	2,693	4,399	63.4
Total Assets	Rs m	14,868	20,272	36.4

BEST AGROLIFE Cash Flow Statement Analysis

• BEST AGROLIFE's cash flow from operating activities (CFO) during FY24 stood at Rs 355 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -633 million, an improvement of 232.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -286 million from the Rs 487 million net cash flows seen during FY23.

BEST AGROLIFE 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	-1,805	355	-
Cash Flow from Investing Activities	Rs m	-190	-633	-
Cash Flow from Financing Activities	Rs m	2,482	-8	-
Net Cash Flow	Rs m	487	-286	-

Current Valuations for BEST AGROLIFE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.0, an decline from the EPS of Rs 81.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 568.0, stands at 36.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	738.4	792.4
TTM Earnings per share	Rs	81.3	45.0
Diluted earnings per share	Rs	81.3	44.9
Price to Cash Flow	x	11.2	15.6
TTM P/E ratio	x	12.6	36.5
Price / Book Value ratio	x	5.7	3.3
Market Cap	Rs m	30,057	21,608
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for BEST AGROLIFE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 3.1x during FY24, from 7.5x 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 16.4% during FY24, from 36.4% 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 29.4% during FY24, from 52.0% 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 8.3% during FY24, from 15.5% 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	1.3	1.2
Debtors’ Days	Days	73	91
Interest coverage	x	7.5	3.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	15.5	8.3
Return on equity	%	36.4	16.4
Return on capital employed	%	52.0	29.4

To see how BEST AGROLIFE has performed over the last 5 years, please visit here.

BEST AGROLIFE Share Price Performance

Over the last one year, BEST AGROLIFE share price has moved down from Rs 1,003.6 to Rs 568.0, registering a loss of Rs 435.6 or around 43.4%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for BEST AGROLIFE and quarterly results for BEST AGROLIFE)