BALAJI AMINES 2021-22 Annual Report Analysis

Wed, 8 Jun

BALAJI AMINES 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.

BALAJI AMINES Income Statement Analysis

• Operating income during the year rose 76.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.7% in FY22 as against 28.1% in FY21.
• Depreciation charges increased by 22.1% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 58.3% YoY.
• Net profit for the year grew by 71.6% YoY.
• Net profit margins during the year declined from 18.6% in FY21 to 18.0% in FY22.

BALAJI AMINES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	13,115	23,204	76.9%
Other income	Rs m	114	180	58.3%
Total Revenues	Rs m	13,228	23,383	76.8%
Gross profit	Rs m	3,679	6,194	68.3%
Depreciation	Rs m	344	420	22.1%
Interest	Rs m	183	171	-6.5%
Profit before tax	Rs m	3,266	5,783	77.1%
Tax	Rs m	831	1,604	93.0%
Profit after tax	Rs m	2,435	4,179	71.6%
Gross profit margin	%	28.1	26.7
Effective tax rate	%	25.4	27.7
Net profit margin	%	18.6	18.0

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BALAJI AMINES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 72.2%.
• Long-term debt down at Rs 576 million as compared to Rs 888 million during FY21, a fall of 35.2%.
• Current assets rose 81% and stood at Rs 10 billion, while fixed assets rose 14% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 19 billion as against Rs 13 billion during FY21, thereby witnessing a growth of 43%.

BALAJI AMINES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,944	12,498	39.7
Current Liabilities	Rs m	2,428	4,180	72.2
Long-term Debt	Rs m	888	576	-35.2
Total Liabilities	Rs m	13,103	18,748	43.1
Current assets	Rs m	5,771	10,421	80.6
Fixed Assets	Rs m	7,329	8,327	13.6
Total Assets	Rs m	13,103	18,748	43.1

BALAJI AMINES Cash Flow Statement Analysis

• BALAJI AMINES's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion, an improvement of 111.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 117.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -663 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 319 million from the Rs 108 million net cash flows seen during FY21.

BALAJI AMINES 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	1,099	2,324	111.5%
Cash Flow from Investing Activities	Rs m	-616	-1,342	-
Cash Flow from Financing Activities	Rs m	-375	-663	-
Net Cash Flow	Rs m	108	319	194.6%

Current Valuations for BALAJI AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 129.0, an improvement from the EPS of Rs 75.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,135.0, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 24.5 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	404.8	716.2
TTM Earnings per share	Rs	75.2	129.0
Diluted earnings per share	Rs	75.2	129.0
Price to Cash Flow	x	20.6	24.5
TTM P/E ratio	x	23.5	24.3
Price / Book Value ratio	x	3.9	9.0
Market Cap	Rs m	34,786	112,495
Dividends per share (Unadj.)	Rs	4.0	6.0

Ratio Analysis for BALAJI AMINES

• 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 improved and stood at 34.8x during FY22, from 18.9x 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 33.4% during FY22, from 27.2% 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 45.5% during FY22, from 35.1% 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 23.2% during FY22, from 20.0% 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	2.4	2.5
Debtors’ Days	Days	851	925
Interest coverage	x	18.9	34.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	20.0	23.2
Return on equity	%	27.2	33.4
Return on capital employed	%	35.1	45.5

To see how BALAJI AMINES has performed over the last 5 years, please visit here.

BALAJI AMINES Share Price Performance

Over the last one year, BALAJI AMINES share price has moved up from Rs 2,719.5 to Rs 3,135.0, registering a gain of Rs 415.5 or around 15.3%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for BALAJI AMINES and quarterly results for BALAJI AMINES)

Read: Latest Annual Report Analysis of BALAJI AMINES