LONGVIEW TEA 2022-23 Annual Report Analysis

Sun, 11 Jun

LONGVIEW TEA 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.

LONGVIEW TEA Income Statement Analysis

• Operating income during the year rose 11.2% 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 50.0% in FY23 as against 29.2% in FY22.
• Depreciation charges increased by 9.1% and finance costs decreased by 85.7% YoY, respectively.
• Other income declined by 85.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 304.4% in FY22 to 12.0% in FY23.

LONGVIEW TEA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12	14	11.2%
Other income	Rs m	55	8	-85.6%
Total Revenues	Rs m	67	22	-67.8%
Gross profit	Rs m	-4	-7	NA
Depreciation	Rs m	0	0	9.1%
Interest	Rs m	0	0	-85.7%
Profit before tax	Rs m	50	1	-98.7%
Tax	Rs m	13	2	-82.6%
Profit after tax	Rs m	37	-2	NA
Gross profit margin	%	-29.2	-50.0
Effective tax rate	%	25.8	358.7
Net profit margin	%	304.4	-12.0

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LONGVIEW TEA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 million as compared to Rs 11 million in FY22, thereby witnessing an decrease of -71.1%.
• Current assets fell 8% and stood at Rs 133 million, while fixed assets rose 5% and stood at Rs 28 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 161 million as against Rs 172 million during FY22, thereby witnessing a fall of 6%.

LONGVIEW TEA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	164	163	-1.0
Current Liabilities	Rs m	11	3	-71.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	172	161	-5.9
Current assets	Rs m	145	133	-8.0
Fixed Assets	Rs m	27	28	5.4
Total Assets	Rs m	172	161	-5.9

LONGVIEW TEA Cash Flow Statement Analysis

• LONGVIEW TEA's cash flow from operating activities (CFO) during FY23 stood at Rs -4 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -1 million net cash flows seen during FY22.

LONGVIEW TEA 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	28	-4	-
Cash Flow from Investing Activities	Rs m	-31	5	-
Cash Flow from Financing Activities	Rs m	1	-1	-
Net Cash Flow	Rs m	-1	0	-

Current Valuations for LONGVIEW TEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an decline from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.9, stands at -25.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at -70.9 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	4.1	4.6
TTM Earnings per share	Rs	12.5	-0.5
Diluted earnings per share	Rs	12.5	-0.5
Price to Cash Flow	x	1.6	-70.9
TTM P/E ratio	x	1.6	-25.3
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	81	91
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LONGVIEW TEA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 40.8x during FY23, from 12.8x 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 16.8x during FY23, from 181.0x 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 -1.0% during FY23, from 22.7% 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 0.4% during FY23, from 30.8% 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 -1.0% during FY23, from 22.0% 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	12.8	40.8
Debtors’ Days	Days	0	0
Interest coverage	x	181.0	16.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.0	-1.0
Return on equity	%	22.7	-1.0
Return on capital employed	%	30.8	0.4

To see how LONGVIEW TEA has performed over the last 5 years, please visit here.

LONGVIEW TEA Share Price Performance

Over the last one year, LONGVIEW TEA share price has moved down from Rs 31.0 to Rs 23.9, registering a loss of Rs 7.1 or around 22.9%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for LONGVIEW TEA and quarterly results for LONGVIEW TEA)