DFM FOODS 2022-23 Annual Report Analysis

Fri, 31 Mar

DFM FOODS 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.

DFM FOODS Income Statement Analysis

• Operating income during the year rose 5.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 7.4% in FY23 as against 3.1% in FY22.
• Depreciation charges decreased by 1.9% and finance costs increased by 5.4% YoY, respectively.
• Other income declined by 37.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 10.7% in FY23.

DFM FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,545	5,861	5.7%
Other income	Rs m	77	48	-37.9%
Total Revenues	Rs m	5,621	5,908	5.1%
Gross profit	Rs m	-171	-435	NA
Depreciation	Rs m	144	141	-1.9%
Interest	Rs m	89	94	5.4%
Profit before tax	Rs m	-327	-622	NA
Tax	Rs m	-80	4	NA
Profit after tax	Rs m	-248	-626	NA
Gross profit margin	%	-3.1	-7.4
Effective tax rate	%	24.3	-0.7
Net profit margin	%	-4.5	-10.7

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DFM FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -23.7%.
• Long-term debt down at Rs 428 million as compared to Rs 599 million during FY22, a fall of 28.6%.
• Current assets fell 58% and stood at Rs 801 million, while fixed assets fell 10% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 4 billion during FY22, thereby witnessing a fall of 29%.

DFM FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,447	822	-43.2
Current Liabilities	Rs m	1,938	1,478	-23.7
Long-term Debt	Rs m	599	428	-28.6
Total Liabilities	Rs m	4,406	3,146	-28.6
Current assets	Rs m	1,920	801	-58.3
Fixed Assets	Rs m	2,486	2,240	-9.9
Total Assets	Rs m	4,406	3,146	-28.6

DFM FOODS Cash Flow Statement Analysis

• DFM FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs -357 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 587 million, an improvement of 6,349.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -251 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -20 million from the Rs 3 million net cash flows seen during FY22.

DFM FOODS 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	38	-357	-
Cash Flow from Investing Activities	Rs m	9	587	6,349.5%
Cash Flow from Financing Activities	Rs m	-43	-251	-
Net Cash Flow	Rs m	3	-20	-

Current Valuations for DFM FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.5, 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 461.7, stands at -47.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 28.2 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at -34.3 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	110.3	116.6
TTM Earnings per share	Rs	-4.9	-12.5
Diluted earnings per share	Rs	-4.9	-12.5
Price to Cash Flow	x	-143.2	-34.3
TTM P/E ratio	x	-60.0	-47.7
Price / Book Value ratio	x	11.8	20.3
Market Cap	Rs m	17,114	16,648
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DFM FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY23, from 1.0x 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 -5.6x during FY23, from -2.7x 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 -76.2% during FY23, from -17.1% 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 declined and down at -42.3% during FY23, from -11.6% 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 declined and down at -16.9% during FY23, from -3.6% 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	1.0	0.5
Debtors’ Days	Days	43	30
Interest coverage	x	-2.7	-5.6
Debt to equity ratio	x	0.4	0.5
Return on assets	%	-3.6	-16.9
Return on equity	%	-17.1	-76.2
Return on capital employed	%	-11.6	-42.3

To see how DFM FOODS has performed over the last 5 years, please visit here.

DFM FOODS Share Price Performance

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(To know more, check out historical annual results for DFM FOODS and quarterly results for DFM FOODS)