AGARWAL INDUSTRIAL 2021-22 Annual Report Analysis

Mon, 26 Sep

AGARWAL INDUSTRIAL 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.

AGARWAL INDUSTRIAL Income Statement Analysis

• Operating income during the year rose 76.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.6% in FY22 as against 7.9% in FY21.
• Depreciation charges increased by 36.6% and finance costs increased by 25.1% YoY, respectively.
• Other income grew by 134.8% YoY.
• Net profit for the year grew by 57.1% YoY.
• Net profit margins during the year declined from 4.5% in FY21 to 4.0% in FY22.

AGARWAL INDUSTRIAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,039	15,982	76.8%
Other income	Rs m	16	37	134.8%
Total Revenues	Rs m	9,055	16,020	76.9%
Gross profit	Rs m	714	1,059	48.2%
Depreciation	Rs m	145	197	36.6%
Interest	Rs m	99	124	25.1%
Profit before tax	Rs m	487	775	59.2%
Tax	Rs m	82	138	69.7%
Profit after tax	Rs m	405	637	57.1%
Gross profit margin	%	7.9	6.6
Effective tax rate	%	16.8	17.9
Net profit margin	%	4.5	4.0

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AGARWAL INDUSTRIAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 38.8%.
• Long-term debt down at Rs 314 million as compared to Rs 413 million during FY21, a fall of 23.9%.
• Current assets rose 36% and stood at Rs 3 billion, while fixed assets rose 40% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 37%.

AGARWAL INDUSTRIAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,961	2,900	47.9
Current Liabilities	Rs m	1,391	1,931	38.8
Long-term Debt	Rs m	413	314	-23.9
Total Liabilities	Rs m	3,954	5,431	37.3
Current assets	Rs m	2,315	3,143	35.8
Fixed Assets	Rs m	1,639	2,288	39.6
Total Assets	Rs m	3,954	5,431	37.3

AGARWAL INDUSTRIAL Cash Flow Statement Analysis

• AGARWAL INDUSTRIAL's cash flow from operating activities (CFO) during FY22 stood at Rs 647 million, an improvement of 30.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -696 million, an improvement of 59.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 190 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 145 million from the Rs 271 million net cash flows seen during FY21.

AGARWAL INDUSTRIAL 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	495	647	30.7%
Cash Flow from Investing Activities	Rs m	-437	-696	-
Cash Flow from Financing Activities	Rs m	213	190	-11.0%
Net Cash Flow	Rs m	271	145	-46.7%

Current Valuations for AGARWAL INDUSTRIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.2, an improvement from the EPS of Rs 39.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 560.0, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	881.0	1,209.9
TTM Earnings per share	Rs	39.5	48.2
Diluted earnings per share	Rs	28.0	44.1
Price to Cash Flow	x	4.1	6.6
TTM P/E ratio	x	5.6	11.2
Price / Book Value ratio	x	0.6	1.9
Market Cap	Rs m	1,107	5,521
Dividends per share (Unadj.)	Rs	1.8	2.0

Ratio Analysis for AGARWAL INDUSTRIAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.7x 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 7.3x during FY22, from 5.9x 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 22.0% during FY22, from 20.7% 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 28.0% during FY22, from 24.7% 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 14.0% during FY22, from 12.7% 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	1.7	1.6
Debtors’ Days	Days	545	368
Interest coverage	x	5.9	7.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.7	14.0
Return on equity	%	20.7	22.0
Return on capital employed	%	24.7	28.0

To see how AGARWAL INDUSTRIAL has performed over the last 5 years, please visit here.

AGARWAL INDUSTRIAL Share Price Performance

Over the last one year, AGARWAL INDUSTRIAL share price has moved up from Rs 300.9 to Rs 560.0, registering a gain of Rs 259.1 or around 86.1%.

Overall, the S&P BSE SENSEX is down 2.9% over the year.

(To know more, check out historical annual results for AGARWAL INDUSTRIAL and quarterly results for AGARWAL INDUSTRIAL)