WESTLIFE FOODWORLD 2023-24 Annual Report Analysis

Wed, 21 Aug

WESTLIFE FOODWORLD 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.

WESTLIFE FOODWORLD Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.4% in FY24 as against 16.4% in FY23.
• Depreciation charges increased by 19.7% and finance costs increased by 18.3% YoY, respectively.
• Other income declined by 9.2% YoY.
• Net profit for the year declined by 38.0% YoY.
• Net profit margins during the year declined from 4.9% in FY23 to 2.9% in FY24.

WESTLIFE FOODWORLD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,782	23,918	5.0%
Other income	Rs m	203	185	-9.2%
Total Revenues	Rs m	22,985	24,103	4.9%
Gross profit	Rs m	3,740	3,693	-1.3%
Depreciation	Rs m	1,522	1,822	19.7%
Interest	Rs m	927	1,097	18.3%
Profit before tax	Rs m	1,495	958	-35.9%
Tax	Rs m	379	266	-29.7%
Profit after tax	Rs m	1,116	692	-38.0%
Gross profit margin	%	16.4	15.4
Effective tax rate	%	25.3	27.8
Net profit margin	%	4.9	2.9

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WESTLIFE FOODWORLD Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 6.9%.
• Current assets fell 6% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 20 billion during FY23, thereby witnessing a growth of 11%.

WESTLIFE FOODWORLD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,659	5,809	2.6
Current Liabilities	Rs m	5,370	5,740	6.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,493	22,647	10.5
Current assets	Rs m	2,058	1,938	-5.8
Fixed Assets	Rs m	18,435	20,708	12.3
Total Assets	Rs m	20,493	22,647	10.5

WESTLIFE FOODWORLD Cash Flow Statement Analysis

• WESTLIFE FOODWORLD's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 59 million from the Rs -149 million net cash flows seen during FY23.

WESTLIFE FOODWORLD 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	3,485	3,396	-2.6%
Cash Flow from Investing Activities	Rs m	-2,653	-1,845	-
Cash Flow from Financing Activities	Rs m	-981	-1,492	-
Net Cash Flow	Rs m	-149	59	-

Current Valuations for WESTLIFE FOODWORLD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an decline from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 802.1, stands at 286.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 21.5 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 52.7 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	146.1	153.4
TTM Earnings per share	Rs	7.2	4.4
Diluted earnings per share	Rs	7.2	4.4
Price to Cash Flow	x	40.4	52.7
TTM P/E ratio	x	95.6	286.7
Price / Book Value ratio	x	16.8	22.8
Market Cap	Rs m	94,911	132,483
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for WESTLIFE FOODWORLD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY24, from 0.4x 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 1.9x during FY24, from 2.6x 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 11.9% during FY24, from 19.7% 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 35.4% during FY24, from 42.8% 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 7.9% during FY24, from 10.0% 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	0.4	0.3
Debtors’ Days	Days	2	3
Interest coverage	x	2.6	1.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	7.9
Return on equity	%	19.7	11.9
Return on capital employed	%	42.8	35.4

To see how WESTLIFE FOODWORLD has performed over the last 5 years, please visit here.

WESTLIFE FOODWORLD Share Price Performance

Over the last one year, WESTLIFE FOODWORLD share price has moved down from Rs 915.3 to Rs 802.1, registering a loss of Rs 113.3 or around 12.4%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for WESTLIFE FOODWORLD and quarterly results for WESTLIFE FOODWORLD)