BEST AGROLIFE 2021-22 Annual Report Analysis

Mon, 19 Sep

BEST AGROLIFE 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.

BEST AGROLIFE Income Statement Analysis

• Operating income during the year rose 33.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 224.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY22 as against 5.7% in FY21.
• Depreciation charges increased by 301.0% and finance costs increased by 218.6% YoY, respectively.
• Other income declined by 75.7% YoY.
• Net profit for the year grew by 182.6% YoY.
• Net profit margins during the year grew from 4.1% in FY21 to 8.7% in FY22.

BEST AGROLIFE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,054	12,108	33.7%
Other income	Rs m	73	18	-75.7%
Total Revenues	Rs m	9,127	12,126	32.8%
Gross profit	Rs m	512	1,658	224.0%
Depreciation	Rs m	30	118	301.0%
Interest	Rs m	47	151	218.6%
Profit before tax	Rs m	508	1,407	177.0%
Tax	Rs m	137	359	161.8%
Profit after tax	Rs m	371	1,048	182.6%
Gross profit margin	%	5.7	13.7
Effective tax rate	%	27.0	25.5
Net profit margin	%	4.1	8.7

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BEST AGROLIFE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 154.5%.
• Long-term debt stood at Rs 486 million as compared to Rs 34 million during FY21, a growth of 1337.7%.
• Current assets rose 133% and stood at Rs 8 billion, while fixed assets rose 657% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 167%.

BEST AGROLIFE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,297	3,299	154.4
Current Liabilities	Rs m	2,428	6,179	154.5
Long-term Debt	Rs m	34	486	1,337.7
Total Liabilities	Rs m	3,814	10,168	166.6
Current assets	Rs m	3,554	8,297	133.4
Fixed Assets	Rs m	247	1,871	656.7
Total Assets	Rs m	3,814	10,168	166.6

BEST AGROLIFE Cash Flow Statement Analysis

• BEST AGROLIFE's cash flow from operating activities (CFO) during FY22 stood at Rs -776 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 670 million, an improvement of 708% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -77 million from the Rs 104 million net cash flows seen during FY21.

BEST AGROLIFE 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	133	-776	-
Cash Flow from Investing Activities	Rs m	81	30	-63.1%
Cash Flow from Financing Activities	Rs m	-110	670	-
Net Cash Flow	Rs m	104	-77	-

Current Valuations for BEST AGROLIFE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.3, an improvement from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,194.0, stands at 23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 16.3 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	411.0	512.2
TTM Earnings per share	Rs	16.8	44.3
Diluted earnings per share	Rs	15.7	44.3
Price to Cash Flow	x	26.3	16.3
TTM P/E ratio	x	28.4	23.7
Price / Book Value ratio	x	8.7	5.7
Market Cap	Rs m	11,221	18,948
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for BEST AGROLIFE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.5x 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 10.3x during FY22, from 11.7x 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 31.8% during FY22, from 28.6% 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 41.1% during FY22, from 41.7% 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 11.8% during FY22, from 11.0% 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	1.5	1.3
Debtors’ Days	Days	529	772
Interest coverage	x	11.7	10.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.0	11.8
Return on equity	%	28.6	31.8
Return on capital employed	%	41.7	41.1

To see how BEST AGROLIFE has performed over the last 5 years, please visit here.

BEST AGROLIFE Share Price Performance

Over the last one year, BEST AGROLIFE share price has moved up from Rs 757.2 to Rs 1,194.0, registering a gain of Rs 436.8 or around 57.7%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for BEST AGROLIFE and quarterly results for BEST AGROLIFE)

Read: Latest Annual Report Analysis of BEST AGROLIFE