INEOS STYROLUTION INDIA 2021-22 Annual Report Analysis

Wed, 3 Aug

INEOS STYROLUTION INDIA 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.

INEOS STYROLUTION INDIA Income Statement Analysis

• Operating income during the year rose 33.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.8% in FY22 as against 25.4% in FY21.
• Depreciation charges increased by 4.4% and finance costs decreased by 43.8% YoY, respectively.
• Other income grew by 6.3% YoY.
• Net profit for the year grew by 15.1% YoY.
• Net profit margins during the year declined from 17.2% in FY21 to 14.8% in FY22.

INEOS STYROLUTION INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	16,315	21,790	33.6%
Other income	Rs m	131	139	6.3%
Total Revenues	Rs m	16,445	21,929	33.3%
Gross profit	Rs m	4,137	4,746	14.7%
Depreciation	Rs m	360	376	4.4%
Interest	Rs m	146	82	-43.8%
Profit before tax	Rs m	3,761	4,426	17.7%
Tax	Rs m	959	1,200	25.2%
Profit after tax	Rs m	2,802	3,225	15.1%
Gross profit margin	%	25.4	21.8
Effective tax rate	%	25.5	27.1
Net profit margin	%	17.2	14.8

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INEOS STYROLUTION INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an decrease of -4.6%.
• Long-term debt down at Rs 95 million as compared to Rs 332 million during FY21, a fall of 71.3%.
• Current assets fell 5% and stood at Rs 9 billion, while fixed assets fell 9% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 13 billion during FY21, thereby witnessing a fall of 6%.

INEOS STYROLUTION INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,888	8,564	-3.6
Current Liabilities	Rs m	3,050	2,909	-4.6
Long-term Debt	Rs m	332	95	-71.3
Total Liabilities	Rs m	13,134	12,319	-6.2
Current assets	Rs m	9,041	8,602	-4.9
Fixed Assets	Rs m	4,092	3,717	-9.2
Total Assets	Rs m	13,134	12,319	-6.2

INEOS STYROLUTION INDIA Cash Flow Statement Analysis

• INEOS STYROLUTION INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 829 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 272 million from the Rs 1 billion net cash flows seen during FY21.

INEOS STYROLUTION INDIA 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	3,846	3,564	-7.3%
Cash Flow from Investing Activities	Rs m	-1,121	829	-
Cash Flow from Financing Activities	Rs m	-1,367	-4,122	-
Net Cash Flow	Rs m	1,357	272	-80.0%

Current Valuations for INEOS STYROLUTION INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 183.4, an improvement from the EPS of Rs 159.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 819.0, stands at 4.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	927.5	1,238.8
TTM Earnings per share	Rs	159.3	183.4
Diluted earnings per share	Rs	159.3	183.4
Price to Cash Flow	x	5.2	6.9
TTM P/E ratio	x	5.9	4.5
Price / Book Value ratio	x	1.6	2.9
Market Cap	Rs m	14,056	24,733
Dividends per share (Unadj.)	Rs	10.0	297.0

Ratio Analysis for INEOS STYROLUTION INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY22, from 3.0x 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 54.8x during FY22, from 26.7x 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 37.7% during FY22, from 31.5% 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 52.1% during FY22, from 42.4% 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 26.9% during FY22, from 22.5% 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	3.0	3.0
Debtors’ Days	Days	685	513
Interest coverage	x	26.7	54.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.5	26.9
Return on equity	%	31.5	37.7
Return on capital employed	%	42.4	52.1

To see how INEOS STYROLUTION INDIA has performed over the last 5 years, please visit here.

INEOS STYROLUTION INDIA Share Price Performance

Over the last one year, INEOS STYROLUTION INDIA share price has moved down from Rs 1,455.2 to Rs 819.0, registering a loss of Rs 636.2 or around 43.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,382.8 (up 0.1%). Over the last one year it has moved up from 15,853.3 to 19,382.8, a gain of 3,530 points (up 22.3%).

Overall, the S&P BSE SENSEX is up 10.3% over the year.

(To know more, check out historical annual results for INEOS STYROLUTION INDIA and quarterly results for INEOS STYROLUTION INDIA)