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FRATELLI VINEYARDS 2023-24 Annual Report Analysis

Wed, 9 Oct

FRATELLI VINEYARDS 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.

FRATELLI VINEYARDS Income Statement Analysis

• Operating income during the year fell 16.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 125.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.3% in FY24 as against 0.5% in FY23.
• Depreciation charges decreased by 41.5% and finance costs decreased by 17.4% YoY, respectively.
• Other income grew by 28.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.9% in FY23 to 0.0% in FY24.

FRATELLI VINEYARDS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,941	2,454	-16.6%
Other income	Rs m	8	11	28.4%
Total Revenues	Rs m	2,950	2,464	-16.5%
Gross profit	Rs m	15	33	125.5%
Depreciation	Rs m	2	1	-41.5%
Interest	Rs m	49	41	-17.4%
Profit before tax	Rs m	-28	2	NA
Tax	Rs m	-2	1	NA
Profit after tax	Rs m	-26	1	NA
Gross profit margin	%	0.5	1.3
Effective tax rate	%	6.6	43.3
Net profit margin	%	-0.9	0.0

For Investors: Our Big Prediction

FRATELLI VINEYARDS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 680 million as compared to Rs 392 million in FY23, thereby witnessing an increase of 73.4%.
• Long-term debt down at Rs 32 million as compared to Rs 59 million during FY23, a fall of 45.4%.
• Current assets rose 44% and stood at Rs 883 million, while fixed assets fell 27% and stood at Rs 80 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 963 million as against Rs 722 million during FY23, thereby witnessing a growth of 33%.

FRATELLI VINEYARDS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	290	268	-7.6
Current Liabilities	Rs m	392	680	73.4
Long-term Debt	Rs m	59	32	-45.4
Total Liabilities	Rs m	722	963	33.4
Current assets	Rs m	612	883	44.1
Fixed Assets	Rs m	110	80	-26.7
Total Assets	Rs m	722	963	33.4

FRATELLI VINEYARDS Cash Flow Statement Analysis

• FRATELLI VINEYARDS's cash flow from operating activities (CFO) during FY24 stood at Rs 7 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -22 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 11 million, an improvement of 110% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs -80 million net cash flows seen during FY23.

FRATELLI VINEYARDS 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	-3	7	-
Cash Flow from Investing Activities	Rs m	32	-22	-
Cash Flow from Financing Activities	Rs m	-109	11	-
Net Cash Flow	Rs m	-80	-3	-

Current Valuations for FRATELLI VINEYARDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 362.6, stands at -3,808.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 58.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 244.3 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	343.6	286.6
TTM Earnings per share	Rs	-3.1	0.1
Diluted earnings per share	Rs	-0.6	0.0
Price to Cash Flow	x	-38.5	244.3
TTM P/E ratio	x	-35.6	-3,808.4
Price / Book Value ratio	x	1.2	2.1
Market Cap	Rs m	362	567
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FRATELLI VINEYARDS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.6x 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 1.0x during FY24, from 0.4x 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 0.4% during FY24, from -9.1% 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 14.2% during FY24, from 6.0% 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 4.4% during FY24, from 3.2% 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	1.6	1.3
Debtors’ Days	Days	467	703
Interest coverage	x	0.4	1.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	3.2	4.4
Return on equity	%	-9.1	0.4
Return on capital employed	%	6.0	14.2

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

FRATELLI VINEYARDS Share Price Performance

Over the last one year, FRATELLI VINEYARDS share price has moved up from Rs 27.6 to Rs 362.6, registering a gain of Rs 335.0 or around 1214.1%.

Overall, the S&P BSE SENSEX is up 25.6% over the year.

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