BAJAJ HIND. SUGAR 2021-22 Annual Report Analysis

Fri, 2 Sep

BAJAJ HIND. SUGAR 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.

BAJAJ HIND. SUGAR Income Statement Analysis

• Operating income during the year fell 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.0% in FY22 as against 2.4% in FY21.
• Depreciation charges decreased by 0.5% and finance costs decreased by 3.6% YoY, respectively.
• Other income grew by 40.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.4% in FY21 to 4.8% in FY22.

BAJAJ HIND. SUGAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	66,660	55,757	-16.4%
Other income	Rs m	227	319	40.7%
Total Revenues	Rs m	66,887	56,076	-16.2%
Gross profit	Rs m	1,628	1,652	1.5%
Depreciation	Rs m	2,157	2,147	-0.5%
Interest	Rs m	2,635	2,540	-3.6%
Profit before tax	Rs m	-2,937	-2,715	NA
Tax	Rs m	-29	-40	NA
Profit after tax	Rs m	-2,908	-2,675	NA
Gross profit margin	%	2.4	3.0
Effective tax rate	%	1.0	1.5
Net profit margin	%	-4.4	-4.8

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BAJAJ HIND. SUGAR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 59 billion as compared to Rs 53 billion in FY21, thereby witnessing an increase of 13.0%.
• Long-term debt down at Rs 42 billion as compared to Rs 48 billion during FY21, a fall of 11.6%.
• Current assets rose 8% and stood at Rs 61 billion, while fixed assets fell 7% and stood at Rs 70 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 131 billion as against Rs 131 billion during FY21, thereby witnessing a fall of 1%.

BAJAJ HIND. SUGAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	23,722	22,591	-4.8
Current Liabilities	Rs m	52,532	59,342	13.0
Long-term Debt	Rs m	48,023	42,438	-11.6
Total Liabilities	Rs m	131,359	130,568	-0.6
Current assets	Rs m	56,643	60,915	7.5
Fixed Assets	Rs m	74,716	69,652	-6.8
Total Assets	Rs m	131,359	130,568	-0.6

BAJAJ HIND. SUGAR Cash Flow Statement Analysis

• BAJAJ HIND. SUGAR's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion, an improvement of 86.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 132 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -221 million from the Rs -302 million net cash flows seen during FY21.

BAJAJ HIND. SUGAR 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	3,317	6,191	86.7%
Cash Flow from Investing Activities	Rs m	224	132	-41.2%
Cash Flow from Financing Activities	Rs m	-3,843	-6,543	-
Net Cash Flow	Rs m	-302	-221	-

Current Valuations for BAJAJ HIND. SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.1, an improvement from the EPS of Rs -2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.2, stands at -5.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -36.3 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	60.6	44.8
TTM Earnings per share	Rs	-2.6	-2.1
Diluted earnings per share	Rs	-2.3	-2.1
Price to Cash Flow	x	-10.5	-36.3
TTM P/E ratio	x	-2.7	-5.0
Price / Book Value ratio	x	0.3	0.9
Market Cap	Rs m	6,175	19,209
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ HIND. SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.1x 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 -0.1x during FY22, from -0.1x 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 -11.8% during FY22, from -12.3% 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 -0.3% during FY22, from -0.4% 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 -0.1% during FY22, from -0.2% 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	1.1	1.0
Debtors’ Days	Days	1	1
Interest coverage	x	-0.1	-0.1
Debt to equity ratio	x	2.0	1.9
Return on assets	%	-0.2	-0.1
Return on equity	%	-12.3	-11.8
Return on capital employed	%	-0.4	-0.3

To see how BAJAJ HIND. SUGAR has performed over the last 5 years, please visit here.

BAJAJ HIND. SUGAR Share Price Performance

Over the last one year, BAJAJ HIND. SUGAR share price has moved down from Rs 14.7 to Rs 10.2, registering a loss of Rs 4.5 or around 30.4%.

Overall, the S&P BSE SENSEX is up 3.3% over the year.

(To know more, check out historical annual results for BAJAJ HIND. SUGAR and quarterly results for BAJAJ HIND. SUGAR)

Read: Latest Annual Report Analysis of BAJAJ HIND. SUGAR