Markets will remain closed on April 17, 2024 on account of Ram Navami.

ADANI ENTERPRISES 2021-22 Annual Report Analysis

Fri, 8 Jul

ADANI ENTERPRISES 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.

ADANI ENTERPRISES Income Statement Analysis

• Operating income during the year rose 75.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.2% in FY22 as against 5.7% in FY21.
• Depreciation charges increased by 132.3% and finance costs increased by 83.5% YoY, respectively.
• Other income grew by 45.8% YoY.
• Net profit for the year declined by 36.3% YoY.
• Net profit margins during the year declined from 1.9% in FY21 to 0.7% in FY22.

ADANI ENTERPRISES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	395,371	694,202	75.6%
Other income	Rs m	7,538	10,993	45.8%
Total Revenues	Rs m	402,909	705,195	75.0%
Gross profit	Rs m	22,462	36,264	61.4%
Depreciation	Rs m	5,371	12,478	132.3%
Interest	Rs m	13,769	25,259	83.5%
Profit before tax	Rs m	10,860	9,521	-12.3%
Tax	Rs m	3,397	4,767	40.3%
Profit after tax	Rs m	7,463	4,754	-36.3%
Gross profit margin	%	5.7	5.2
Effective tax rate	%	31.3	50.1
Net profit margin	%	1.9	0.7

For You: Midcap Stocks Research at Less than Its Launch Price

ADANI ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 438 billion as compared to Rs 215 billion in FY21, thereby witnessing an increase of 104.1%.
• Long-term debt stood at Rs 208 billion as compared to Rs 95 billion during FY21, a growth of 118.4%.
• Current assets rose 55% and stood at Rs 309 billion, while fixed assets rose 124% and stood at Rs 706 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1,016 billion as against Rs 516 billion during FY21, thereby witnessing a growth of 97%.

ADANI ENTERPRISES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	171,586	222,565	29.7
Current Liabilities	Rs m	214,831	438,498	104.1
Long-term Debt	Rs m	95,233	208,034	118.4
Total Liabilities	Rs m	515,663	1,015,864	97.0
Current assets	Rs m	199,633	309,454	55.0
Fixed Assets	Rs m	316,030	706,410	123.5
Total Assets	Rs m	515,663	1,015,864	97.0

ADANI ENTERPRISES Cash Flow Statement Analysis

• ADANI ENTERPRISES's cash flow from operating activities (CFO) during FY22 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -175 billion, an improvement of 121.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 159 billion, an improvement of 411% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -15 billion net cash flows seen during FY21.

ADANI ENTERPRISES 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	40,433	13,853	-65.7%
Cash Flow from Investing Activities	Rs m	-79,024	-174,874	-
Cash Flow from Financing Activities	Rs m	31,088	159,014	411.5%
Net Cash Flow	Rs m	-14,585	2,461	-

Current Valuations for ADANI ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,296.0, stands at 550.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.8 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 98.2 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	359.5	631.2
TTM Earnings per share	Rs	6.8	4.3
Diluted earnings per share	Rs	6.5	4.2
Price to Cash Flow	x	91.6	98.2
TTM P/E ratio	x	157.5	550.6
Price / Book Value ratio	x	3.9	7.6
Market Cap	Rs m	671,104	1,692,140
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ADANI ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY22, from 0.9x 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 deteriorated and stood at 1.4x during FY22, from 1.8x 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 declined and down at 2.1% during FY22, from 4.3% 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 declined and down at 8.1% during FY22, from 9.2% 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 declined and down at 3.0% during FY22, from 4.1% 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	0.9	0.7
Debtors’ Days	Days	11	7
Interest coverage	x	1.8	1.4
Debt to equity ratio	x	0.6	0.9
Return on assets	%	4.1	3.0
Return on equity	%	4.3	2.1
Return on capital employed	%	9.2	8.1

To see how ADANI ENTERPRISES has performed over the last 5 years, please visit here.

ADANI ENTERPRISES Share Price Performance

Over the last one year, ADANI ENTERPRISES share price has moved up from Rs 1,425.5 to Rs 2,296.0, registering a gain of Rs 870.5 or around 61.1%.

Overall, the S&P BSE SENSEX is up 3.1% over the year.

(To know more, check out historical annual results for ADANI ENTERPRISES and quarterly results for ADANI ENTERPRISES)

Read: Latest Annual Report Analysis of ADANI ENTERPRISES