3M INDIA 2021-22 Annual Report Analysis

Tue, 2 Aug

3M 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.

3M INDIA Income Statement Analysis

• Operating income during the year rose 28.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 10.0% in FY21.
• Depreciation charges decreased by 10.9% and finance costs increased by 51.6% YoY, respectively.
• Other income grew by 50.0% YoY.
• Net profit for the year grew by 67.5% YoY.
• Net profit margins during the year grew from 6.2% in FY21 to 8.2% in FY22.

3M INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	26,048	33,358	28.1%
Other income	Rs m	247	371	50.0%
Total Revenues	Rs m	26,296	33,730	28.3%
Gross profit	Rs m	2,595	3,892	50.0%
Depreciation	Rs m	618	551	-10.9%
Interest	Rs m	25	37	51.6%
Profit before tax	Rs m	2,199	3,675	67.1%
Tax	Rs m	575	955	66.0%
Profit after tax	Rs m	1,624	2,720	67.5%
Gross profit margin	%	10.0	11.7
Effective tax rate	%	26.2	26.0
Net profit margin	%	6.2	8.2

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3M INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 10.4%.
• Current assets rose 14% and stood at Rs 24 billion, while fixed assets rose 11% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 30 billion as against Rs 26 billion during FY21, thereby witnessing a growth of 13%.

3M INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,103	21,836	14.3
Current Liabilities	Rs m	6,886	7,605	10.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,207	29,731	13.4
Current assets	Rs m	21,377	24,370	14.0
Fixed Assets	Rs m	4,830	5,361	11.0
Total Assets	Rs m	26,207	29,731	13.4

3M INDIA Cash Flow Statement Analysis

• 3M INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 2.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -407 million, an improvement of 187.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -212 million, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs 3 billion net cash flows seen during FY21.

3M 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	3,211	3,274	2.0%
Cash Flow from Investing Activities	Rs m	-142	-407	-
Cash Flow from Financing Activities	Rs m	-250	-212	-
Net Cash Flow	Rs m	2,819	2,654	-5.8%

Current Valuations for 3M INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 241.3, an improvement from the EPS of Rs 144.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22,765.2, stands at 94.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 86.7 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	2,311.3	2,959.9
TTM Earnings per share	Rs	144.1	241.3
Diluted earnings per share	Rs	144.1	241.4
Price to Cash Flow	x	151.9	86.7
TTM P/E ratio	x	209.8	94.3
Price / Book Value ratio	x	14.0	13.0
Market Cap	Rs m	267,659	283,519
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for 3M INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY22, from 3.1x 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 99.8x during FY22, from 90.6x 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 12.5% during FY22, from 8.5% 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 17.0% during FY22, from 11.6% 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 9.3% during FY22, from 6.3% 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	3.1	3.2
Debtors’ Days	Days	685	577
Interest coverage	x	90.6	99.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	9.3
Return on equity	%	8.5	12.5
Return on capital employed	%	11.6	17.0

To see how 3M INDIA has performed over the last 5 years, please visit here.

3M INDIA Share Price Performance

Over the last one year, 3M INDIA share price has moved down from Rs 24,687.0 to Rs 22,765.2, registering a loss of Rs 1,921.8 or around 7.8%.

Overall, the S&P BSE SENSEX is up 10.4% over the year.

(To know more, check out historical annual results for 3M INDIA and quarterly results for 3M INDIA)

Read: Latest Annual Report Analysis of 3M INDIA