AMBIKA COTTON 2021-22 Annual Report Analysis

Fri, 2 Sep

AMBIKA COTTON has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

AMBIKA COTTON Income Statement Analysis

• Operating income during the year rose 45.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 115.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.4% in FY22 as against 19.9% in FY21.
• Depreciation charges increased by 1.6% and finance costs decreased by 65.9% YoY, respectively.
• Other income grew by 1399.1% YoY.
• Net profit for the year grew by 164.7% YoY.
• Net profit margins during the year grew from 10.7% in FY21 to 19.5% in FY22.

AMBIKA COTTON Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,334	9,205	45.3%
Other income	Rs m	3	50	1,399.1%
Total Revenues	Rs m	6,337	9,255	46.0%
Gross profit	Rs m	1,259	2,708	115.0%
Depreciation	Rs m	289	294	1.6%
Interest	Rs m	69	24	-65.9%
Profit before tax	Rs m	904	2,440	169.9%
Tax	Rs m	224	641	185.6%
Profit after tax	Rs m	679	1,799	164.7%
Gross profit margin	%	19.9	29.4
Effective tax rate	%	24.8	26.3
Net profit margin	%	10.7	19.5

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AMBIKA COTTON Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 592 million in FY21, thereby witnessing an increase of 129.6%.
• Current assets rose 66% and stood at Rs 7 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 36%.

AMBIKA COTTON Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,652	7,249	28.2
Current Liabilities	Rs m	592	1,359	129.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,512	8,878	36.3
Current assets	Rs m	3,937	6,529	65.8
Fixed Assets	Rs m	2,575	2,348	-8.8
Total Assets	Rs m	6,512	8,878	36.3

AMBIKA COTTON Cash Flow Statement Analysis

• AMBIKA COTTON's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 192.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -214 million, an improvement of 74% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs -50 million net cash flows seen during FY21.

AMBIKA COTTON Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,033	3,018	192.1%
Cash Flow from Investing Activities	Rs m	-246	-30	-
Cash Flow from Financing Activities	Rs m	-837	-214	-
Net Cash Flow	Rs m	-50	2,774	-

Current Valuations for AMBIKA COTTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 313.9, an improvement from the EPS of Rs 118.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,806.9, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	1,105.3	1,606.5
TTM Earnings per share	Rs	118.6	313.9
Diluted earnings per share	Rs	118.7	314.2
Price to Cash Flow	x	5.3	5.0
TTM P/E ratio	x	7.5	5.7
Price / Book Value ratio	x	0.9	1.5
Market Cap	Rs m	4,895	10,520
Dividends per share (Unadj.)	Rs	35.0	35.0

Ratio Analysis for AMBIKA COTTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.8x during FY22, from 6.7x during FY21. 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 104.3x during FY22, from 14.1x during FY21. 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 24.8% during FY22, from 12.0% during FY22. 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 34.0% during FY22, from 17.2% during FY21. 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 20.5% during FY22, from 11.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	6.7	4.8
Debtors’ Days	Days	78	182
Interest coverage	x	14.1	104.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	20.5
Return on equity	%	12.0	24.8
Return on capital employed	%	17.2	34.0

To see how AMBIKA COTTON has performed over the last 5 years, please visit here.

AMBIKA COTTON Share Price Performance

Over the last one year, AMBIKA COTTON share price has moved up from Rs 1,509.9 to Rs 1,806.9, registering a gain of Rs 297.0 or around 19.7%.

Overall, the S&P BSE SENSEX is up 3.3% over the year.

(To know more, check out historical annual results for AMBIKA COTTON and quarterly results for AMBIKA COTTON)

Read: Latest Annual Report Analysis of AMBIKA COTTON