PARAG MILK FOODS 2023-24 Annual Report Analysis

Sun, 18 Aug

PARAG MILK FOODS 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.

PARAG MILK FOODS Income Statement Analysis

• Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.3% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 5.2% and finance costs increased by 38.2% YoY, respectively.
• Other income declined by 44.2% YoY.
• Net profit for the year grew by 70.1% YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 2.9% in FY24.

PARAG MILK FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,926	31,387	8.5%
Other income	Rs m	452	252	-44.2%
Total Revenues	Rs m	29,378	31,639	7.7%
Gross profit	Rs m	1,183	1,971	66.6%
Depreciation	Rs m	573	603	5.2%
Interest	Rs m	552	762	38.2%
Profit before tax	Rs m	511	859	68.1%
Tax	Rs m	-22	-47	NA
Profit after tax	Rs m	533	906	70.1%
Gross profit margin	%	4.1	6.3
Effective tax rate	%	-4.3	-5.5
Net profit margin	%	1.8	2.9

Don't Miss: Key Information for Long-term Investors

PARAG MILK FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 19.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY23, a fall of 4.2%.
• Current assets rose 16% and stood at Rs 13 billion, while fixed assets rose 7% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 13%.

PARAG MILK FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,032	9,121	13.6
Current Liabilities	Rs m	5,884	7,008	19.1
Long-term Debt	Rs m	2,552	2,444	-4.2
Total Liabilities	Rs m	16,676	18,831	12.9
Current assets	Rs m	11,288	13,052	15.6
Fixed Assets	Rs m	5,388	5,779	7.3
Total Assets	Rs m	16,676	18,831	12.9

PARAG MILK FOODS Cash Flow Statement Analysis

• PARAG MILK FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 991 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -529 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -494 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -32 million from the Rs -659 million net cash flows seen during FY23.

PARAG MILK FOODS 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	-1,901	991	-
Cash Flow from Investing Activities	Rs m	-876	-529	-
Cash Flow from Financing Activities	Rs m	2,117	-494	-
Net Cash Flow	Rs m	-659	-32	-

Current Valuations for PARAG MILK FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 196.0, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	246.8	263.3
TTM Earnings per share	Rs	4.5	7.6
Diluted earnings per share	Rs	4.5	7.6
Price to Cash Flow	x	7.8	14.4
TTM P/E ratio	x	16.3	24.3
Price / Book Value ratio	x	1.4	2.4
Market Cap	Rs m	11,559	21,724
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for PARAG MILK FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 1.9x 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 improved and stood at 2.1x during FY24, from 1.9x 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 improved and stood at 9.9% during FY24, from 6.6% 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 improved and stood at 14.0% during FY24, from 10.0% 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 improved and stood at 8.9% during FY24, from 6.5% 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	1.9	1.9
Debtors’ Days	Days	21	28
Interest coverage	x	1.9	2.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	6.5	8.9
Return on equity	%	6.6	9.9
Return on capital employed	%	10.0	14.0

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

PARAG MILK FOODS Share Price Performance

Over the last one year, PARAG MILK FOODS share price has moved up from Rs 169.6 to Rs 196.0, registering a gain of Rs 26.4 or around 15.6%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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