ALOK INDUSTRIES 2021-22 Annual Report Analysis

Wed, 7 Sep

ALOK INDUSTRIES 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.

ALOK INDUSTRIES Income Statement Analysis

• Operating income during the year rose 90.0% 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 7.7% in FY22 as against 96.0% in FY21.
• Depreciation charges increased by 15.9% and finance costs decreased by 2.7% YoY, respectively.
• Other income grew by 68.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 147.4% in FY21 to 2.8% in FY22.

ALOK INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	38,476	73,095	90.0%
Other income	Rs m	266	449	68.8%
Total Revenues	Rs m	38,742	73,544	89.8%
Gross profit	Rs m	-36,954	5,650	NA
Depreciation	Rs m	2,951	3,422	15.9%
Interest	Rs m	4,893	4,762	-2.7%
Profit before tax	Rs m	-44,532	-2,084	NA
Tax	Rs m	12,191	-8	NA
Profit after tax	Rs m	-56,723	-2,076	NA
Gross profit margin	%	-96.0	7.7
Effective tax rate	%	-27.4	0.4
Net profit margin	%	-147.4	-2.8

ALOK INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 37 billion as compared to Rs 29 billion in FY21, thereby witnessing an increase of 26.1%.
• Long-term debt down at Rs 224 billion as compared to Rs 228 billion during FY21, a fall of 1.4%.
• Current assets rose 23% and stood at Rs 23 billion, while fixed assets fell 4% and stood at Rs 60 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 82 billion as against Rs 80 billion during FY21, thereby witnessing a growth of 2%.

ALOK INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-176,568	-179,073	NA
Current Liabilities	Rs m	29,017	36,578	26.1
Long-term Debt	Rs m	227,651	224,350	-1.4
Total Liabilities	Rs m	80,385	82,215	2.3
Current assets	Rs m	18,484	22,660	22.6
Fixed Assets	Rs m	61,902	59,555	-3.8
Total Assets	Rs m	80,385	82,215	2.3

ALOK INDUSTRIES Cash Flow Statement Analysis

• ALOK INDUSTRIES'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 -684 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY21.

ALOK INDUSTRIES 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	3,453	1,848	-46.5%
Cash Flow from Investing Activities	Rs m	-2,033	-684	-
Cash Flow from Financing Activities	Rs m	-3,445	-2,932	-
Net Cash Flow	Rs m	-2,025	-1,767	-

Current Valuations for ALOK INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.4, an improvement from the EPS of Rs -11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 20.3, stands at -40.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 99.7 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	7.7	14.7
TTM Earnings per share	Rs	-11.4	-0.4
Diluted earnings per share	Rs	-11.4	-0.4
Price to Cash Flow	x	-1.9	99.7
TTM P/E ratio	x	-1.8	-40.1
Price / Book Value ratio	x	-0.9	-0.7
Market Cap	Rs m	161,693	134,186
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALOK INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY22, from 0.6x 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 0.6x during FY22, from -8.1x 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 declined and down at 1.2% during FY22, from 32.1% 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 5.9% during FY22, from -77.6% 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 3.3% during FY22, from -64.5% 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	0.6	0.6
Debtors’ Days	Days	3	3
Interest coverage	x	-8.1	0.6
Debt to equity ratio	x	-1.3	-1.3
Return on assets	%	-64.5	3.3
Return on equity	%	32.1	1.2
Return on capital employed	%	-77.6	5.9

To see how ALOK INDUSTRIES has performed over the last 5 years, please visit here.

ALOK INDUSTRIES Share Price Performance

Over the last one year, ALOK INDUSTRIES share price has moved down from Rs 23.3 to Rs 20.3, registering a loss of Rs 3.0 or around 12.9%.

Overall, the S&P BSE SENSEX is up 1.2% over the year.

(To know more, check out historical annual results for ALOK INDUSTRIES and quarterly results for ALOK INDUSTRIES)

Read: Latest Annual Report Analysis of ALOK INDUSTRIES