AUTHUM INVESTMENT 2021-22 Annual Report Analysis

Thu, 31 Mar

AUTHUM INVESTMENT 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.

AUTHUM INVESTMENT Income Statement Analysis

• Operating income during the year rose 254.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 380.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 94.3% in FY22 as against 69.5% in FY21.
• Depreciation charges increased by 4500.0% and finance costs increased by 43.5% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 394.2% YoY.
• Net profit margins during the year grew from 52.9% in FY21 to 73.7% in FY22.

AUTHUM INVESTMENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,560	9,074	254.5%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	2,560	9,074	254.5%
Gross profit	Rs m	1,779	8,556	380.9%
Depreciation	Rs m	0	1	4,500.0%
Interest	Rs m	207	297	43.5%
Profit before tax	Rs m	1,573	8,259	425.2%
Tax	Rs m	220	1,572	615.9%
Profit after tax	Rs m	1,353	6,687	394.2%
Gross profit margin	%	69.5	94.3
Effective tax rate	%	14.0	19.0
Net profit margin	%	52.9	73.7

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AUTHUM INVESTMENT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 7 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 128.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 8 billion during FY21, a fall of 75.9%.
• Current assets rose 2,715% and stood at Rs 7 billion, while fixed assets rose 75% and stood at Rs 34 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 40 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 107%.

AUTHUM INVESTMENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,018	31,213	289.3
Current Liabilities	Rs m	3,044	6,957	128.5
Long-term Debt	Rs m	8,395	2,020	-75.9
Total Liabilities	Rs m	19,457	40,191	106.6
Current assets	Rs m	233	6,570	2,715.1
Fixed Assets	Rs m	19,224	33,621	74.9
Total Assets	Rs m	19,457	40,191	106.6

AUTHUM INVESTMENT Cash Flow Statement Analysis

• AUTHUM INVESTMENT's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 20.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 billion, an improvement of 26.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 3 billion, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 276 million from the Rs 139 million net cash flows seen during FY21.

AUTHUM INVESTMENT 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	2,173	2,616	20.4%
Cash Flow from Investing Activities	Rs m	-4,505	-5,703	-
Cash Flow from Financing Activities	Rs m	2,471	3,362	36.1%
Net Cash Flow	Rs m	139	276	97.6%

Current Valuations for AUTHUM INVESTMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.4, an decline from the EPS of Rs 83.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 194.0, stands at 1.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 19.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.4 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	158.6	53.4
TTM Earnings per share	Rs	83.8	39.4
Diluted earnings per share	Rs	8.0	39.4
Price to Cash Flow	x	4.6	26.4
TTM P/E ratio	x	4.6	1.3
Price / Book Value ratio	x	0.5	5.7
Market Cap	Rs m	3,803	176,894
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AUTHUM INVESTMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.1x 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 28.9x during FY22, from 8.6x 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 21.4% during FY22, from 16.9% 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 25.7% during FY22, from 10.8% 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 17.4% during FY22, from 8.0% 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	0.1	0.9
Debtors’ Days	Days	0	26
Interest coverage	x	8.6	28.9
Debt to equity ratio	x	1.0	0.1
Return on assets	%	8.0	17.4
Return on equity	%	16.9	21.4
Return on capital employed	%	10.8	25.7

To see how AUTHUM INVESTMENT has performed over the last 5 years, please visit here.

AUTHUM INVESTMENT Share Price Performance

Over the last one year, AUTHUM INVESTMENT share price has moved up from Rs 149.7 to Rs 194.0, registering a gain of Rs 44.3 or around 29.6%.

Overall, the S&P BSE SENSEX is up 7.7% over the year.

(To know more, check out historical annual results for AUTHUM INVESTMENT and quarterly results for AUTHUM INVESTMENT)