ANDHRA SUGAR 2021-22 Annual Report Analysis

Tue, 20 Sep

ANDHRA SUGAR 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.

ANDHRA SUGAR Income Statement Analysis

• Operating income during the year rose 30.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY22 as against 13.7% in FY21.
• Depreciation charges increased by 4.4% and finance costs decreased by 50.8% YoY, respectively.
• Other income grew by 46.6% YoY.
• Net profit for the year grew by 45.9% YoY.
• Net profit margins during the year grew from 7.6% in FY21 to 8.6% in FY22.

ANDHRA SUGAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	15,091	19,616	30.0%
Other income	Rs m	260	381	46.6%
Total Revenues	Rs m	15,351	19,997	30.3%
Gross profit	Rs m	2,067	2,616	26.6%
Depreciation	Rs m	612	640	4.4%
Interest	Rs m	274	135	-50.8%
Profit before tax	Rs m	1,441	2,222	54.3%
Tax	Rs m	289	543	87.6%
Profit after tax	Rs m	1,151	1,679	45.9%
Gross profit margin	%	13.7	13.3
Effective tax rate	%	20.1	24.4
Net profit margin	%	7.6	8.6

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ANDHRA SUGAR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 3.8%.
• Long-term debt down at Rs 85 million as compared to Rs 492 million during FY21, a fall of 82.8%.
• Current assets rose 9% and stood at Rs 11 billion, while fixed assets rose 12% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 22 billion as against Rs 20 billion during FY21, thereby witnessing a growth of 11%.

ANDHRA SUGAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	12,975	15,186	17.0
Current Liabilities	Rs m	3,725	3,865	3.8
Long-term Debt	Rs m	492	85	-82.8
Total Liabilities	Rs m	19,832	21,982	10.8
Current assets	Rs m	9,840	10,746	9.2
Fixed Assets	Rs m	9,992	11,236	12.5
Total Assets	Rs m	19,832	21,982	10.8

ANDHRA SUGAR Cash Flow Statement Analysis

• ANDHRA SUGAR'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 -257 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 4 million from the Rs -209 million net cash flows seen during FY21.

ANDHRA SUGAR 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	2,525	1,752	-30.6%
Cash Flow from Investing Activities	Rs m	-1,413	-257	-
Cash Flow from Financing Activities	Rs m	-1,322	-1,491	-
Net Cash Flow	Rs m	-209	4	-

Current Valuations for ANDHRA SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.4, an decline from the EPS of Rs 42.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 145.5, stands at 9.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 24.8 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	556.7	144.7
TTM Earnings per share	Rs	42.5	12.4
Diluted earnings per share	Rs	8.5	12.4
Price to Cash Flow	x	22.4	24.8
TTM P/E ratio	x	34.3	9.7
Price / Book Value ratio	x	0.6	3.8
Market Cap	Rs m	7,311	57,589
Dividends per share (Unadj.)	Rs	2.0	4.0

Ratio Analysis for ANDHRA SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY22, from 2.6x 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 17.5x during FY22, from 6.3x 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 improved and stood at 11.1% during FY22, from 8.9% 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 15.4% during FY22, from 12.7% 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 8.3% during FY22, from 7.2% 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	2.6	2.8
Debtors’ Days	Days	527	446
Interest coverage	x	6.3	17.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.2	8.3
Return on equity	%	8.9	11.1
Return on capital employed	%	12.7	15.4

To see how ANDHRA SUGAR has performed over the last 5 years, please visit here.

ANDHRA SUGAR Share Price Performance

Over the last one year, ANDHRA SUGAR share price has moved down from Rs 543.2 to Rs 145.5, registering a loss of Rs 397.7 or around 73.2%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for ANDHRA SUGAR and quarterly results for ANDHRA SUGAR)

Read: Latest Annual Report Analysis of ANDHRA SUGAR