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ASIAN TEA 2021-22 Annual Report Analysis
Tue, 15 Nov

ASIAN TEA 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.

ASIAN TEA Income Statement Analysis

  • Operating income during the year fell 30.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 86.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.2% in FY22 as against 1.6% in FY21.
  • Depreciation charges decreased by 15.0% and finance costs decreased by 4.0% YoY, respectively.
  • Other income declined by 45.6% YoY.
  • Net profit for the year declined by 21.9% YoY.
  • Net profit margins during the year grew from 3.1% in FY21 to 3.5% in FY22.

ASIAN TEA Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,181 815 -30.9%
Other income Rs m 58 32 -45.6%
Total Revenues Rs m 1,239 847 -31.6%
Gross profit Rs m 19 35 86.8%
Depreciation Rs m 2 1 -15.0%
Interest Rs m 35 33 -4.0%
Profit before tax Rs m 40 31 -21.8%
Tax Rs m 3 3 -19.9%
Profit after tax Rs m 37 29 -21.9%
Gross profit margin % 1.6 4.2
Effective tax rate % 8.5 8.7
Net profit margin % 3.1 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ASIAN TEA Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 489 million as compared to Rs 347 million in FY21, thereby witnessing an increase of 40.9%.
  • Long-term debt stood at Rs 72 million as compared to Rs 54 million during FY21, a growth of 33.7%.
  • Current assets rose 62% and stood at Rs 790 million, while fixed assets rose 11% and stood at Rs 368 million in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 820 million during FY21, thereby witnessing a growth of 41%.

ASIAN TEA Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 413 591 42.8
 
Current Liabilities Rs m 347 489 40.9
Long-term Debt Rs m 54 72 33.7
Total Liabilities Rs m 820 1,158 41.2
 
Current assets Rs m 488 790 61.9
Fixed Assets Rs m 332 368 10.9
Total Assets Rs m 820 1,158 41.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASIAN TEA Cash Flow Statement Analysis

  • ASIAN TEA's cash flow from operating activities (CFO) during FY22 stood at Rs -88 million, an improvement of 197.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -64 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 170 million, an improvement of 1,012% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 17 million from the Rs 7 million net cash flows seen during FY21.

ASIAN TEA 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 -30 -88 -
Cash Flow from Investing Activities Rs m 55 -64 -
Cash Flow from Financing Activities Rs m -19 170 -
Net Cash Flow Rs m 7 17 163.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASIAN TEA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 3.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 12.9, stands at 8.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.9 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 118.1 40.8
TTM Earnings per share Rs 3.7 1.4
Diluted earnings per share Rs 1.8 1.4
Price to Cash Flow x 7.4 15.9
TTM P/E ratio x 7.7 8.0
Price / Book Value ratio x 0.3 0.8
Market Cap Rs m 137 478
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASIAN TEA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.4x 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 deteriorated and stood at 1.9x during FY22, from 2.2x 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 4.9% 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 declined and down at 9.8% during FY22, from 16.0% 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 5.4% during FY22, from 8.7% 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 1.4 1.6
Debtors’ Days Days 33,409 156,213
Interest coverage x 2.2 1.9
Debt to equity ratio x 0.1 0.1
Return on assets % 8.7 5.4
Return on equity % 8.9 4.9
Return on capital employed % 16.0 9.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ASIAN TEA has performed over the last 5 years, please visit here.

ASIAN TEA Share Price Performance

Over the last one year, ASIAN TEA share price has moved down from Rs 19.6 to Rs 12.9, registering a loss of Rs 6.6 or around 33.8%.

Overall, the S&P BSE SENSEX is up 2.9% over the year.

(To know more, check out historical annual results for ASIAN TEA and quarterly results for ASIAN TEA)

Annual Report FAQs

What is the current share price of ASIAN TEA?

ASIAN TEA currently trades at Rs 14.0 per share. You can check out the latest share price performance of ASIAN TEA here...

What was the revenue of ASIAN TEA in FY22? How does it compare to earlier years?

The revenues of ASIAN TEA stood at Rs 847 m in FY22, which was down -31.6% compared to Rs 1,239 m reported in FY21.

ASIAN TEA's revenue has grown from Rs 126 m in FY18 to Rs 847 m in FY22.

Over the past 5 years, the revenue of ASIAN TEA has grown at a CAGR of 60.9%.

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

The net profit of ASIAN TEA stood at Rs 29 m in FY22, which was down -21.9% compared to Rs 37 m reported in FY21.

This compares to a net profit of Rs 28 m in FY20 and a net profit of Rs 13 m in FY19.

Over the past 5 years, ASIAN TEA net profit has grown at a CAGR of 32.9%.

What does the cash flow statement of ASIAN TEA 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 ASIAN TEA reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs -88 m as compared to Rs -30 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -64 m as compared to Rs 55 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 170 m as compared to Rs -19 m in FY21.

Here's the cash flow statement of ASIAN TEA for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations-32-501318-30-88
From Investments17177-15055-64
From Financial Activity3322-161-19170
Net Cashflow-13-27717

What does the Key Ratio analysis of ASIAN TEA 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 ASIAN TEA reveals:

  • Operating profit margins witnessed a fall and down at 4.2% in FY22 as against 1.6% in FY21.
  • Net profit margins grew from 3.1% in FY21 to 3.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.1 in FY21.

Here's the ratio/financial analysis of ASIAN TEA for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)-2.81.83.21.64.2
Net Profit Margin (%)8.70.81.23.13.5
Debt to Equity Ratio (x)0.10.20.10.10.1

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