MILKFOOD 2023-24 Annual Report Analysis

Tue, 9 Jul

MILKFOOD 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.

MILKFOOD Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY24 as against 5.2% in FY23.
• Depreciation charges increased by 5.7% and finance costs increased by 38.3% YoY, respectively.
• Other income grew by 170.6% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year declined from 2.1% in FY23 to 1.6% in FY24.

MILKFOOD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,674	4,369	-6.5%
Other income	Rs m	35	94	170.6%
Total Revenues	Rs m	4,709	4,463	-5.2%
Gross profit	Rs m	242	197	-18.5%
Depreciation	Rs m	64	67	5.7%
Interest	Rs m	98	135	38.3%
Profit before tax	Rs m	115	88	-23.2%
Tax	Rs m	17	17	-2.3%
Profit after tax	Rs m	98	71	-27.0%
Gross profit margin	%	5.2	4.5
Effective tax rate	%	15.1	19.3
Net profit margin	%	2.1	1.6

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MILKFOOD Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 985 million in FY23, thereby witnessing an increase of 11.6%.
• Long-term debt down at Rs 640 million as compared to Rs 709 million during FY23, a fall of 9.7%.
• Current assets rose 8% and stood at Rs 1 billion, while fixed assets rose 17% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 13%.

MILKFOOD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,305	1,740	33.3
Current Liabilities	Rs m	985	1,100	11.6
Long-term Debt	Rs m	709	640	-9.7
Total Liabilities	Rs m	3,314	3,734	12.7
Current assets	Rs m	1,262	1,363	8.0
Fixed Assets	Rs m	2,026	2,370	17.0
Total Assets	Rs m	3,314	3,734	12.7

MILKFOOD Cash Flow Statement Analysis

• MILKFOOD's cash flow from operating activities (CFO) during FY24 stood at Rs 203 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -210 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs -13 million net cash flows seen during FY23.

MILKFOOD 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	-300	203	-
Cash Flow from Investing Activities	Rs m	-71	7	-
Cash Flow from Financing Activities	Rs m	359	-210	-
Net Cash Flow	Rs m	-13	1	-

Current Valuations for MILKFOOD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.9, an decline from the EPS of Rs 19.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 683.2, stands at 58.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 21.8 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	955.8	851.7
TTM Earnings per share	Rs	19.9	13.9
Diluted earnings per share	Rs	16.0	11.7
Price to Cash Flow	x	23.0	21.8
TTM P/E ratio	x	38.0	58.5
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	2,477	3,014
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for MILKFOOD

• 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 1.7x during FY24, from 2.2x 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 4.1% during FY24, from 7.5% 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 9.4% during FY24, from 10.6% 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 5.5% during FY24, from 5.9% 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	249	641
Interest coverage	x	2.2	1.7
Debt to equity ratio	x	0.5	0.4
Return on assets	%	5.9	5.5
Return on equity	%	7.5	4.1
Return on capital employed	%	10.6	9.4

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

MILKFOOD Share Price Performance

Over the last one year, MILKFOOD share price has moved up from Rs 551.2 to Rs 683.2, registering a gain of Rs 132.1 or around 24.0%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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