ADOR WELDING 2021-22 Annual Report Analysis

Sat, 20 Aug

ADOR WELDING 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.

ADOR WELDING Income Statement Analysis

• Operating income during the year rose 47.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY22 as against 0.5% in FY21.
• Depreciation charges decreased by 2.4% and finance costs decreased by 28.9% YoY, respectively.
• Other income declined by 25.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.3% in FY21 to 6.8% in FY22.

ADOR WELDING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,477	6,615	47.8%
Other income	Rs m	74	55	-25.8%
Total Revenues	Rs m	4,551	6,670	46.6%
Gross profit	Rs m	-21	694	NA
Depreciation	Rs m	112	109	-2.4%
Interest	Rs m	82	58	-28.9%
Profit before tax	Rs m	-141	582	NA
Tax	Rs m	-37	131	NA
Profit after tax	Rs m	-104	452	NA
Gross profit margin	%	-0.5	10.5
Effective tax rate	%	26.2	22.4
Net profit margin	%	-2.3	6.8

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ADOR WELDING Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an decrease of -19.3%.
• Long-term debt stood at Rs 6 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 8% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 4%.

ADOR WELDING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,375	2,821	18.8
Current Liabilities	Rs m	1,470	1,187	-19.3
Long-term Debt	Rs m	0	6	0.0
Total Liabilities	Rs m	4,190	4,352	3.9
Current assets	Rs m	2,274	2,447	7.6
Fixed Assets	Rs m	1,917	1,905	-0.6
Total Assets	Rs m	4,190	4,352	3.9

ADOR WELDING Cash Flow Statement Analysis

• ADOR WELDING's cash flow from operating activities (CFO) during FY22 stood at Rs 264 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -55 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -314 million, an improvement of 48% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -104 million from the Rs 119 million net cash flows seen during FY21.

ADOR WELDING 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	790	264	-66.6%
Cash Flow from Investing Activities	Rs m	-66	-55	-
Cash Flow from Financing Activities	Rs m	-606	-314	-
Net Cash Flow	Rs m	119	-104	-

Current Valuations for ADOR WELDING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.2, an improvement from the EPS of Rs -7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 777.4, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 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	329.2	486.4
TTM Earnings per share	Rs	-7.6	33.2
Diluted earnings per share	Rs	-7.6	33.2
Price to Cash Flow	x	516.9	14.0
TTM P/E ratio	x	-39.3	21.7
Price / Book Value ratio	x	1.5	2.8
Market Cap	Rs m	3,563	7,840
Dividends per share (Unadj.)	Rs	0.0	12.5

Ratio Analysis for ADOR WELDING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 1.5x 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 11.0x during FY22, from -0.7x 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 16.0% during FY22, from -4.4% 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 22.6% during FY22, from -2.5% 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 11.7% during FY22, from -0.5% 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	1.5	2.1
Debtors’ Days	Days	860	514
Interest coverage	x	-0.7	11.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.5	11.7
Return on equity	%	-4.4	16.0
Return on capital employed	%	-2.5	22.6

To see how ADOR WELDING has performed over the last 5 years, please visit here.

ADOR WELDING Share Price Performance

Over the last one year, ADOR WELDING share price has moved up from Rs 670.2 to Rs 777.4, registering a gain of Rs 107.3 or around 16.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 31,496.7 (up 0.3%). Over the last one year it has moved up from 23,548.5 to 31,496.7, a gain of 7,948 points (up 33.8%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for ADOR WELDING and quarterly results for ADOR WELDING)

Read: Latest Annual Report Analysis of ADOR WELDING