VIDHI SPECIALTY FOOD INGREDIENTS 2023-24 Annual Report Analysis

Tue, 24 Sep

VIDHI SPECIALTY FOOD INGREDIENTS 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.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement Analysis

• Operating income during the year fell 24.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.9% in FY24 as against 13.8% in FY23.
• Depreciation charges increased by 79.9% and finance costs decreased by 12.2% YoY, respectively.
• Other income declined by 1.5% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year grew from 9.3% in FY23 to 12.0% in FY24.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,040	3,034	-24.9%
Other income	Rs m	12	12	-1.5%
Total Revenues	Rs m	4,052	3,046	-24.8%
Gross profit	Rs m	558	572	2.5%
Depreciation	Rs m	35	64	79.9%
Interest	Rs m	37	33	-12.2%
Profit before tax	Rs m	498	488	-2.0%
Tax	Rs m	121	124	2.1%
Profit after tax	Rs m	377	364	-3.3%
Gross profit margin	%	13.8	18.9
Effective tax rate	%	24.3	25.3
Net profit margin	%	9.3	12.0

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

VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 391 million as compared to Rs 723 million in FY23, thereby witnessing an decrease of -46.0%.
• Long-term debt down at Rs 4 million as compared to Rs 47 million during FY23, a fall of 92.1%.
• Current assets fell 10% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a fall of 2%.

VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,507	2,802	11.8
Current Liabilities	Rs m	723	391	-46.0
Long-term Debt	Rs m	47	4	-92.1
Total Liabilities	Rs m	3,311	3,245	-2.0
Current assets	Rs m	2,072	1,870	-9.7
Fixed Assets	Rs m	1,239	1,375	10.9
Total Assets	Rs m	3,311	3,245	-2.0

VIDHI SPECIALTY FOOD INGREDIENTS Cash Flow Statement Analysis

• VIDHI SPECIALTY FOOD INGREDIENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 635 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -192 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -400 million, an improvement of 16% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 43 million from the Rs 61 million net cash flows seen during FY23.

VIDHI SPECIALTY FOOD INGREDIENTS 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	959	635	-33.8%
Cash Flow from Investing Activities	Rs m	-424	-192	-
Cash Flow from Financing Activities	Rs m	-475	-400	-
Net Cash Flow	Rs m	61	43	-30.2%

Current Valuations for VIDHI SPECIALTY FOOD INGREDIENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 445.1, stands at 60.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 47.9 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	80.9	60.7
TTM Earnings per share	Rs	7.5	7.3
Diluted earnings per share	Rs	7.5	7.3
Price to Cash Flow	x	39.5	47.9
TTM P/E ratio	x	43.2	60.9
Price / Book Value ratio	x	8.3	7.3
Market Cap	Rs m	20,746	20,512
Dividends per share (Unadj.)	Rs	0.8	2.0

Ratio Analysis for VIDHI SPECIALTY FOOD INGREDIENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.8x during FY24, from 2.9x 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 16.0x during FY24, from 14.4x 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 declined and down at 13.0% during FY24, from 15.0% 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 18.6% during FY24, from 20.9% 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 12.2% during FY24, from 12.5% 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	2.9	4.8
Debtors’ Days	Days	910	1,063
Interest coverage	x	14.4	16.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.5	12.2
Return on equity	%	15.0	13.0
Return on capital employed	%	20.9	18.6

To see how VIDHI SPECIALTY FOOD INGREDIENTS has performed over the last 5 years, please visit here.

VIDHI SPECIALTY FOOD INGREDIENTS Share Price Performance

Over the last one year, VIDHI SPECIALTY FOOD INGREDIENTS share price has moved up from Rs 411.5 to Rs 445.1, registering a gain of Rs 33.6 or around 8.2%.

Overall, the S&P BSE SENSEX is up 27.2% over the year.

(To know more, check out historical annual results for VIDHI SPECIALTY FOOD INGREDIENTS and quarterly results for VIDHI SPECIALTY FOOD INGREDIENTS)