ZUARI AGRO 2023-24 Annual Report Analysis

Wed, 23 Oct

ZUARI AGRO 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.

ZUARI AGRO Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 56.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY24 as against 19.2% in FY23.
• Depreciation charges increased by 20.8% and finance costs increased by 2.3% YoY, respectively.
• Other income grew by 87.5% YoY.
• Net profit for the year declined by 69.2% YoY.
• Net profit margins during the year declined from 12.2% in FY23 to 3.7% in FY24.

ZUARI AGRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,526	45,955	0.9%
Other income	Rs m	946	1,774	87.5%
Total Revenues	Rs m	46,473	47,729	2.7%
Gross profit	Rs m	8,738	3,792	-56.6%
Depreciation	Rs m	785	948	20.8%
Interest	Rs m	2,066	2,113	2.3%
Profit before tax	Rs m	6,834	2,506	-63.3%
Tax	Rs m	1,291	796	-38.3%
Profit after tax	Rs m	5,543	1,710	-69.2%
Gross profit margin	%	19.2	8.3
Effective tax rate	%	18.9	31.8
Net profit margin	%	12.2	3.7

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

ZUARI AGRO Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 19 billion as compared to Rs 22 billion in FY23, thereby witnessing an decrease of -15.2%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY23, a fall of 22.1%.
• Current assets fell 17% and stood at Rs 15 billion, while fixed assets rose 2% and stood at Rs 33 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 48 billion as against Rs 50 billion during FY23, thereby witnessing a fall of 5%.

ZUARI AGRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,812	16,913	7.0
Current Liabilities	Rs m	22,071	18,714	-15.2
Long-term Debt	Rs m	5,569	4,341	-22.1
Total Liabilities	Rs m	50,498	48,114	-4.7
Current assets	Rs m	17,881	14,766	-17.4
Fixed Assets	Rs m	32,555	33,286	2.2
Total Assets	Rs m	50,498	48,114	-4.7

ZUARI AGRO Cash Flow Statement Analysis

• ZUARI AGRO's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 398.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -514 million from the Rs -2 billion net cash flows seen during FY23.

ZUARI AGRO 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	948	4,731	398.9%
Cash Flow from Investing Activities	Rs m	4,259	28	-99.3%
Cash Flow from Financing Activities	Rs m	-6,971	-5,273	-
Net Cash Flow	Rs m	-1,763	-514	-

Current Valuations for ZUARI AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.6, an decline from the EPS of Rs 131.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 192.2, stands at 6.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 3.0 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	1,082.4	1,092.6
TTM Earnings per share	Rs	131.8	40.6
Diluted earnings per share	Rs	131.8	40.6
Price to Cash Flow	x	0.8	3.0
TTM P/E ratio	x	0.6	6.2
Price / Book Value ratio	x	0.4	0.5
Market Cap	Rs m	7,035	7,993
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZUARI AGRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.8x 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 deteriorated and stood at 2.2x during FY24, from 4.3x 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 10.1% during FY24, from 35.1% 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 declined and down at 21.7% during FY24, from 41.6% 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 7.9% during FY24, from 15.1% 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	0.8	0.8
Debtors’ Days	Days	626	475
Interest coverage	x	4.3	2.2
Debt to equity ratio	x	0.4	0.3
Return on assets	%	15.1	7.9
Return on equity	%	35.1	10.1
Return on capital employed	%	41.6	21.7

To see how ZUARI AGRO has performed over the last 5 years, please visit here.

ZUARI AGRO Share Price Performance

Over the last one year, ZUARI AGRO share price has moved up from Rs 142.7 to Rs 192.2, registering a gain of Rs 49.5 or around 34.7%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for ZUARI AGRO and quarterly results for ZUARI AGRO)