B&A PACKAGING INDIA 2021-22 Annual Report Analysis

Tue, 8 Nov

B&A PACKAGING 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.

B&A PACKAGING INDIA Income Statement Analysis

• Operating income during the year rose 30.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY22 as against 17.1% in FY21.
• Depreciation charges increased by 14.9% and finance costs decreased by 0.1% YoY, respectively.
• Other income declined by 50.6% YoY.
• Net profit for the year declined by 13.2% YoY.
• Net profit margins during the year declined from 10.7% in FY21 to 7.1% in FY22.

B&A PACKAGING INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	979	1,280	30.7%
Other income	Rs m	19	10	-50.6%
Total Revenues	Rs m	999	1,289	29.1%
Gross profit	Rs m	167	158	-5.6%
Depreciation	Rs m	13	14	14.9%
Interest	Rs m	13	13	-0.1%
Profit before tax	Rs m	161	140	-13.1%
Tax	Rs m	56	49	-12.7%
Profit after tax	Rs m	105	91	-13.2%
Gross profit margin	%	17.1	12.3
Effective tax rate	%	34.7	34.8
Net profit margin	%	10.7	7.1

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B&A PACKAGING INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 256 million as compared to Rs 237 million in FY21, thereby witnessing an increase of 7.8%.
• Long-term debt down at Rs 25 million as compared to Rs 27 million during FY21, a fall of 8.8%.
• Current assets rose 14% and stood at Rs 643 million, while fixed assets rose 14% and stood at Rs 221 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 863 million as against Rs 755 million during FY21, thereby witnessing a growth of 14%.

B&A PACKAGING INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	465	556	19.6
Current Liabilities	Rs m	237	256	7.8
Long-term Debt	Rs m	27	25	-8.8
Total Liabilities	Rs m	755	863	14.4
Current assets	Rs m	562	643	14.4
Fixed Assets	Rs m	193	221	14.4
Total Assets	Rs m	755	863	14.4

B&A PACKAGING INDIA Cash Flow Statement Analysis

• B&A PACKAGING INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 44 million, an improvement of 1,358.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -48 million, an improvement of 31.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -15 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -20 million from the Rs -45 million net cash flows seen during FY21.

B&A PACKAGING 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	44	1,358.5%
Cash Flow from Investing Activities	Rs m	-37	-48	-
Cash Flow from Financing Activities	Rs m	-11	-15	-
Net Cash Flow	Rs m	-45	-20	-

Current Valuations for B&A PACKAGING INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an decline from the EPS of Rs 21.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 241.0, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	197.5	258.0
TTM Earnings per share	Rs	21.2	18.4
Diluted earnings per share	Rs	21.2	18.4
Price to Cash Flow	x	1.6	9.3
TTM P/E ratio	x	1.8	12.3
Price / Book Value ratio	x	0.2	1.8
Market Cap	Rs m	109	982
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for B&A PACKAGING INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY22, from 2.4x 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 11.7x during FY22, from 13.3x 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 declined and down at 16.4% during FY22, from 22.6% 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 26.3% during FY22, from 35.4% 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 declined and down at 12.1% during FY22, from 15.7% 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	2.4	2.5
Debtors’ Days	Days	825	672
Interest coverage	x	13.3	11.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	15.7	12.1
Return on equity	%	22.6	16.4
Return on capital employed	%	35.4	26.3

To see how B&A PACKAGING INDIA has performed over the last 5 years, please visit here.

B&A PACKAGING INDIA Share Price Performance

Over the last one year, B&A PACKAGING INDIA share price has moved up from Rs 213.8 to Rs 241.0, registering a gain of Rs 27.2 or around 12.7%.

Overall, the S&P BSE SENSEX is up 1.9% over the year.

(To know more, check out historical annual results for B&A PACKAGING INDIA and quarterly results for B&A PACKAGING INDIA)