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AMARJOTHI SPINNING 2021-22 Annual Report Analysis
Mon, 7 Nov

AMARJOTHI SPINNING 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.

AMARJOTHI SPINNING Income Statement Analysis

  • Operating income during the year rose 43.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 20.0% in FY21.
  • Depreciation charges decreased by 44.1% and finance costs decreased by 46.4% YoY, respectively.
  • Other income declined by 77.9% YoY.
  • Net profit for the year grew by 62.1% YoY.
  • Net profit margins during the year grew from 7.6% in FY21 to 8.6% in FY22.

AMARJOTHI SPINNING Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,794 2,572 43.4%
Other income Rs m 80 18 -77.9%
Total Revenues Rs m 1,874 2,590 38.2%
Gross profit Rs m 359 364 1.6%
Depreciation Rs m 180 101 -44.1%
Interest Rs m 120 65 -46.4%
Profit before tax Rs m 138 217 56.9%
Tax Rs m 1 -5 NA
Profit after tax Rs m 137 222 62.1%
Gross profit margin % 20.0 14.2
Effective tax rate % 1.0 -2.3
Net profit margin % 7.6 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

AMARJOTHI SPINNING Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 578 million as compared to Rs 452 million in FY21, thereby witnessing an increase of 27.7%.
  • Long-term debt stood at Rs 582 million as compared to Rs 472 million during FY21, a growth of 23.3%.
  • Current assets rose 32% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 2 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 17%.

AMARJOTHI SPINNING Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 1,478 1,701 15.1
 
Current Liabilities Rs m 452 578 27.7
Long-term Debt Rs m 472 582 23.3
Total Liabilities Rs m 2,533 2,963 17.0
 
Current assets Rs m 942 1,240 31.7
Fixed Assets Rs m 1,590 1,723 8.3
Total Assets Rs m 2,533 2,963 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AMARJOTHI SPINNING Cash Flow Statement Analysis

  • AMARJOTHI SPINNING's cash flow from operating activities (CFO) during FY22 stood at Rs 121 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -240 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 123 million, an improvement of 122% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 4 million from the Rs 11 million net cash flows seen during FY21.

AMARJOTHI SPINNING 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 544 121 -77.7%
Cash Flow from Investing Activities Rs m 31 -240 -
Cash Flow from Financing Activities Rs m -564 123 -
Net Cash Flow Rs m 11 4 -66.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AMARJOTHI SPINNING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an improvement from the EPS of Rs 20.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 189.4, stands at 7.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.4 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 265.8 381.1
TTM Earnings per share Rs 20.3 32.9
Diluted earnings per share Rs 20.3 32.9
Price to Cash Flow x 2.1 3.4
TTM P/E ratio x 6.2 7.0
Price / Book Value ratio x 0.4 0.6
Market Cap Rs m 572 1,083
Dividends per share (Unadj.) Rs 2.1 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AMARJOTHI SPINNING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 2.1x 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 4.4x during FY22, from 2.1x 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 13.0% during FY22, from 9.3% 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 12.3% during FY22, from 13.3% 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 9.7% during FY22, from 10.2% 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 2.1 2.1
Debtors’ Days Days 629 510
Interest coverage x 2.1 4.4
Debt to equity ratio x 0.3 0.3
Return on assets % 10.2 9.7
Return on equity % 9.3 13.0
Return on capital employed % 13.3 12.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how AMARJOTHI SPINNING has performed over the last 5 years, please visit here.

AMARJOTHI SPINNING Share Price Performance

Over the last one year, AMARJOTHI SPINNING share price has moved up from Rs 165.3 to Rs 189.4, registering a gain of Rs 24.2 or around 14.6%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for AMARJOTHI SPINNING and quarterly results for AMARJOTHI SPINNING)

Annual Report FAQs

What is the current share price of AMARJOTHI SPINNING?

AMARJOTHI SPINNING currently trades at Rs 170.6 per share. You can check out the latest share price performance of AMARJOTHI SPINNING here...

What was the revenue of AMARJOTHI SPINNING in FY22? How does it compare to earlier years?

The revenues of AMARJOTHI SPINNING stood at Rs 2,590 m in FY22, which was up 38.2% compared to Rs 1,874 m reported in FY21.

AMARJOTHI SPINNING's revenue has grown from Rs 1,930 m in FY18 to Rs 2,590 m in FY22.

Over the past 5 years, the revenue of AMARJOTHI SPINNING has grown at a CAGR of 7.6%.

What was the net profit of AMARJOTHI SPINNING in FY22? How does it compare to earlier years?

The net profit of AMARJOTHI SPINNING stood at Rs 222 m in FY22, which was up 62.1% compared to Rs 137 m reported in FY21.

This compares to a net profit of Rs 120 m in FY20 and a net profit of Rs 152 m in FY19.

Over the past 5 years, AMARJOTHI SPINNING net profit has grown at a CAGR of 5.6%.

What does the cash flow statement of AMARJOTHI SPINNING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AMARJOTHI SPINNING reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 121 m as compared to Rs 544 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -240 m as compared to Rs 31 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 123 m as compared to Rs -564 m in FY21.

Here's the cash flow statement of AMARJOTHI SPINNING for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations1661,042177544121
From Investments-799-410-17131-240
From Financial Activity679-666-18-564123
Net Cashflow46-34-12114

What does the Key Ratio analysis of AMARJOTHI SPINNING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AMARJOTHI SPINNING reveals:

  • Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 20.0% in FY21.
  • Net profit margins grew from 7.6% in FY21 to 8.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.3 as compared to 0.3 in FY21.

Here's the ratio/financial analysis of AMARJOTHI SPINNING for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)22.320.022.520.014.2
Net Profit Margin (%)9.47.17.07.68.6
Debt to Equity Ratio (x)1.40.80.80.30.3

Read: Latest Annual Report Analysis of AMARJOTHI SPINNING

 

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