OVOBEL FOODS 2022-23 Annual Report Analysis

Tue, 20 Jun

OVOBEL 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.

OVOBEL FOODS Income Statement Analysis

• Operating income during the year rose 77.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY23 as against 0.1% in FY22.
• Depreciation charges decreased by 15.0% and finance costs increased by 70.0% YoY, respectively.
• Other income grew by 76.2% YoY.
• Net profit for the year grew by 228270.6% YoY.
• Net profit margins during the year grew from 0.0% in FY22 to 17.5% in FY23.

OVOBEL FOODS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,251	2,213	77.0%
Other income	Rs m	19	34	76.2%
Total Revenues	Rs m	1,270	2,248	76.9%
Gross profit	Rs m	-1	514	NA
Depreciation	Rs m	9	8	-15.0%
Interest	Rs m	8	14	70.0%
Profit before tax	Rs m	1	526	42,316.1%
Tax	Rs m	1	138	12,772.0%
Profit after tax	Rs m	0	388	228,270.6%
Gross profit margin	%	-0.1	23.2
Effective tax rate	%	86.3	26.2
Net profit margin	%	0.0	17.5

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OVOBEL FOODS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 388 million as compared to Rs 319 million in FY22, thereby witnessing an increase of 21.8%.
• Long-term debt down at Rs 20 million as compared to Rs 34 million during FY22, a fall of 39.7%.
• Current assets rose 70% and stood at Rs 870 million, while fixed assets rose 264% and stood at Rs 127 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 997 million as against Rs 546 million during FY22, thereby witnessing a growth of 83%.

OVOBEL FOODS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	200	589	194.5
Current Liabilities	Rs m	319	388	21.8
Long-term Debt	Rs m	34	20	-39.7
Total Liabilities	Rs m	546	997	82.5
Current assets	Rs m	512	870	70.2
Fixed Assets	Rs m	35	127	264.3
Total Assets	Rs m	546	997	82.5

OVOBEL FOODS Cash Flow Statement Analysis

• OVOBEL FOODS's cash flow from operating activities (CFO) during FY23 stood at Rs 409 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -412 million, an improvement of 14,046.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs 56 million net cash flows seen during FY22.

OVOBEL 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	-49	409	-
Cash Flow from Investing Activities	Rs m	-3	-412	-
Cash Flow from Financing Activities	Rs m	108	4	-96.1%
Net Cash Flow	Rs m	56	2	-97.3%

Current Valuations for OVOBEL FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.9, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.7, stands at 6.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	131.7	233.0
TTM Earnings per share	Rs	0.0	40.9
Diluted earnings per share	Rs	0.0	40.9
Price to Cash Flow	x	23.9	4.0
TTM P/E ratio	x	1,466.3	6.7
Price / Book Value ratio	x	1.7	2.7
Market Cap	Rs m	348	1,603
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OVOBEL FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.6x 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 improved and stood at 37.7x during FY23, from 1.1x 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 improved and stood at 65.9% during FY23, from 0.1% 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 improved and stood at 88.7% during FY23, from 4.1% 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 improved and stood at 40.4% during FY23, from 1.6% 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	1.6	2.2
Debtors’ Days	Days	338	295
Interest coverage	x	1.1	37.7
Debt to equity ratio	x	0.2	0.0
Return on assets	%	1.6	40.4
Return on equity	%	0.1	65.9
Return on capital employed	%	4.1	88.7

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

OVOBEL FOODS Share Price Performance

Over the last one year, OVOBEL FOODS share price has moved up from Rs 48.2 to Rs 275.7, registering a gain of Rs 227.5 or around 471.9%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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