ALKYL AMINES 2021-22 Annual Report Analysis

Fri, 8 Jul

ALKYL AMINES 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.

ALKYL AMINES Income Statement Analysis

• Operating income during the year rose 24.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY22 as against 34.5% in FY21.
• Depreciation charges increased by 19.6% and finance costs decreased by 39.6% YoY, respectively.
• Other income grew by 103.9% YoY.
• Net profit for the year declined by 23.9% YoY.
• Net profit margins during the year declined from 23.8% in FY21 to 14.6% in FY22.

ALKYL AMINES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,424	15,428	24.2%
Other income	Rs m	70	142	103.9%
Total Revenues	Rs m	12,494	15,570	24.6%
Gross profit	Rs m	4,291	3,265	-23.9%
Depreciation	Rs m	291	348	19.6%
Interest	Rs m	63	38	-39.6%
Profit before tax	Rs m	4,007	3,021	-24.6%
Tax	Rs m	1,054	772	-26.7%
Profit after tax	Rs m	2,953	2,249	-23.9%
Gross profit margin	%	34.5	21.2
Effective tax rate	%	26.3	25.6
Net profit margin	%	23.8	14.6

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ALKYL AMINES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 16.4%.
• Current assets rose 2% and stood at Rs 5 billion, while fixed assets rose 35% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 17 billion as against Rs 14 billion during FY21, thereby witnessing a growth of 22%.

ALKYL AMINES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,896	9,865	24.9
Current Liabilities	Rs m	2,818	3,279	16.4
Long-term Debt	Rs m	216	0	-100.0
Total Liabilities	Rs m	13,566	16,569	22.1
Current assets	Rs m	5,279	5,376	1.8
Fixed Assets	Rs m	8,287	11,193	35.1
Total Assets	Rs m	13,566	16,569	22.1

ALKYL AMINES Cash Flow Statement Analysis

• ALKYL AMINES's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -573 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -583 million from the Rs 649 million net cash flows seen during FY21.

ALKYL AMINES 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	3,639	2,047	-43.8%
Cash Flow from Investing Activities	Rs m	-2,126	-2,057	-
Cash Flow from Financing Activities	Rs m	-865	-573	-
Net Cash Flow	Rs m	649	-583	-

Current Valuations for ALKYL AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.0, an decline from the EPS of Rs 144.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,637.0, stands at 59.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 8.7 times.
• The company's price to cash flow (P/CF) ratio stood at 113.7 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	608.7	302.1
TTM Earnings per share	Rs	144.7	44.0
Diluted earnings per share	Rs	57.8	44.0
Price to Cash Flow	x	89.6	113.7
TTM P/E ratio	x	98.4	59.9
Price / Book Value ratio	x	9.2	29.9
Market Cap	Rs m	72,453	295,147
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for ALKYL AMINES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.9x 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 improved and stood at 80.0x during FY22, from 64.3x 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 22.8% during FY22, from 37.4% 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 declined and down at 31.0% during FY22, from 50.2% 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 13.8% during FY22, from 22.2% 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	1.9	1.6
Debtors’ Days	Days	670	655
Interest coverage	x	64.3	80.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.2	13.8
Return on equity	%	37.4	22.8
Return on capital employed	%	50.2	31.0

To see how ALKYL AMINES has performed over the last 5 years, please visit here.

ALKYL AMINES Share Price Performance

Over the last one year, ALKYL AMINES share price has moved down from Rs 3,665.9 to Rs 2,637.0, registering a loss of Rs 1,028.9 or around 28.1%.

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

(To know more, check out historical annual results for ALKYL AMINES and quarterly results for ALKYL AMINES)

Read: Latest Annual Report Analysis of ALKYL AMINES