BARBEQUE NATION HOSPITALITY 2023-24 Annual Report Analysis

Tue, 16 Jul

BARBEQUE NATION HOSPITALITY 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.

BARBEQUE NATION HOSPITALITY Income Statement Analysis

• Operating income during the year rose 1.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY24 as against 19.0% in FY23.
• Depreciation charges increased by 15.8% and finance costs increased by 5.8% YoY, respectively.
• Other income grew by 118.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.6% in FY23 to 0.9% in FY24.

BARBEQUE NATION HOSPITALITY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,338	12,545	1.7%
Other income	Rs m	80	176	118.8%
Total Revenues	Rs m	12,418	12,721	2.4%
Gross profit	Rs m	2,344	2,122	-9.5%
Depreciation	Rs m	1,450	1,679	15.8%
Interest	Rs m	717	759	5.8%
Profit before tax	Rs m	257	-140	NA
Tax	Rs m	66	-28	NA
Profit after tax	Rs m	191	-112	NA
Gross profit margin	%	19.0	16.9
Effective tax rate	%	25.6	20.3
Net profit margin	%	1.6	-0.9

Don't Miss: Key Information for Long-term Investors

BARBEQUE NATION HOSPITALITY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 11.7%.
• Long-term debt stood at Rs 262 million as compared to Rs 76 million during FY23, a growth of 243.5%.
• Current assets rose 12% and stood at Rs 1 billion, while fixed assets fell 0% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 1%.

BARBEQUE NATION HOSPITALITY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,883	3,690	-5.0
Current Liabilities	Rs m	2,306	2,575	11.7
Long-term Debt	Rs m	76	262	243.5
Total Liabilities	Rs m	12,080	12,198	1.0
Current assets	Rs m	1,216	1,357	11.6
Fixed Assets	Rs m	10,864	10,842	-0.2
Total Assets	Rs m	12,080	12,198	1.0

BARBEQUE NATION HOSPITALITY Cash Flow Statement Analysis

• BARBEQUE NATION HOSPITALITY's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -66 million from the Rs -428 million net cash flows seen during FY23.

BARBEQUE NATION HOSPITALITY 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	2,276	2,205	-3.1%
Cash Flow from Investing Activities	Rs m	-1,383	-1,059	-
Cash Flow from Financing Activities	Rs m	-1,320	-1,212	-
Net Cash Flow	Rs m	-428	-66	-

Current Valuations for BARBEQUE NATION HOSPITALITY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.9, an decline from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 553.1, stands at -193.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.0 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	316.5	321.1
TTM Earnings per share	Rs	4.9	-2.9
Diluted earnings per share	Rs	4.9	-2.9
Price to Cash Flow	x	15.1	16.0
TTM P/E ratio	x	129.5	-193.4
Price / Book Value ratio	x	9.8	6.8
Market Cap	Rs m	38,017	25,134
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BARBEQUE NATION HOSPITALITY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.5x 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 0.8x during FY24, from 1.4x 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 -3.0% during FY24, from 4.9% 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 declined and down at 15.6% during FY24, from 24.6% 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 declined and down at 5.3% during FY24, from 7.5% 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	0.5	0.5
Debtors’ Days	Days	0	1
Interest coverage	x	1.4	0.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.5	5.3
Return on equity	%	4.9	-3.0
Return on capital employed	%	24.6	15.6

To see how BARBEQUE NATION HOSPITALITY has performed over the last 5 years, please visit here.

BARBEQUE NATION HOSPITALITY Share Price Performance

Over the last one year, BARBEQUE NATION HOSPITALITY share price has moved down from Rs 678.6 to Rs 553.1, registering a loss of Rs 125.5 or around 18.5%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for BARBEQUE NATION HOSPITALITY and quarterly results for BARBEQUE NATION HOSPITALITY)