SARVESHWAR FOODS 2023-24 Annual Report Analysis

Thu, 26 Sep

SARVESHWAR 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.

SARVESHWAR FOODS Income Statement Analysis

• Operating income during the year rose 26.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 869.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.2% in FY24 as against 4.7% in FY23.
• Depreciation charges decreased by 58.7% and finance costs increased by 46.7% YoY, respectively.
• Other income declined by 9.7% YoY.
• Net profit for the year grew by 3389.2% YoY.
• Net profit margins during the year grew from 1.1% in FY23 to 31.7% in FY24.

SARVESHWAR FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,893	8,696	26.2%
Other income	Rs m	81	73	-9.7%
Total Revenues	Rs m	6,974	8,769	25.7%
Gross profit	Rs m	325	3,145	869.2%
Depreciation	Rs m	27	11	-58.7%
Interest	Rs m	269	395	46.7%
Profit before tax	Rs m	109	2,812	2,479.8%
Tax	Rs m	30	52	72.4%
Profit after tax	Rs m	79	2,761	3,389.2%
Gross profit margin	%	4.7	36.2
Effective tax rate	%	27.4	1.8
Net profit margin	%	1.1	31.7

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SARVESHWAR FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 47.7%.
• Long-term debt stood at Rs 918 million as compared to Rs 442 million during FY23, a growth of 107.6%.
• Current assets rose 43% and stood at Rs 8 billion, while fixed assets fell 6% and stood at Rs 164 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 41%.

SARVESHWAR FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,062	2,526	22.5
Current Liabilities	Rs m	3,014	4,453	47.7
Long-term Debt	Rs m	442	918	107.6
Total Liabilities	Rs m	5,595	7,903	41.2
Current assets	Rs m	5,420	7,738	42.8
Fixed Assets	Rs m	175	164	-6.3
Total Assets	Rs m	5,595	7,903	41.2

SARVESHWAR FOODS Cash Flow Statement Analysis

• SARVESHWAR FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 157 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -65 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -2 million net cash flows seen during FY23.

SARVESHWAR 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	-357	2,495	-
Cash Flow from Investing Activities	Rs m	-58	157	-
Cash Flow from Financing Activities	Rs m	414	-65	-
Net Cash Flow	Rs m	-2	2,588	-

Current Valuations for SARVESHWAR FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an improvement from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9.4, stands at 52.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 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	237.9	8.9
TTM Earnings per share	Rs	2.7	2.8
Diluted earnings per share	Rs	0.1	2.8
Price to Cash Flow	x	19.7	3.2
TTM P/E ratio	x	26.5	52.5
Price / Book Value ratio	x	0.0	3.5
Market Cap	Rs m	76	8,766
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SARVESHWAR FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.8x 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 8.1x during FY24, from 1.4x 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 109.3% during FY24, from 3.8% 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 93.1% during FY24, from 15.1% 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 39.9% during FY24, from 6.2% 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	1.8	1.7
Debtors’ Days	Days	933	787
Interest coverage	x	1.4	8.1
Debt to equity ratio	x	0.2	0.4
Return on assets	%	6.2	39.9
Return on equity	%	3.8	109.3
Return on capital employed	%	15.1	93.1

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

SARVESHWAR FOODS Share Price Performance

Over the last one year, SARVESHWAR FOODS share price has moved up from Rs 5.3 to Rs 9.4, registering a gain of Rs 4.1 or around 77.2%.

Overall, the S&P BSE SENSEX is up 29.4% over the year.

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