BERGER PAINTS 2021-22 Annual Report Analysis

Fri, 5 Aug

BERGER PAINTS 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.

BERGER PAINTS Income Statement Analysis

• Operating income during the year rose 28.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY22 as against 17.4% in FY21.
• Depreciation charges increased by 7.3% and finance costs increased by 15.0% YoY, respectively.
• Other income grew by 25.4% YoY.
• Net profit for the year grew by 14.3% YoY.
• Net profit margins during the year declined from 10.6% in FY21 to 9.5% in FY22.

BERGER PAINTS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	68,176	87,618	28.5%
Other income	Rs m	515	646	25.4%
Total Revenues	Rs m	68,691	88,264	28.5%
Gross profit	Rs m	11,880	13,311	12.0%
Depreciation	Rs m	2,111	2,265	7.3%
Interest	Rs m	441	507	15.0%
Profit before tax	Rs m	9,842	11,184	13.6%
Tax	Rs m	2,589	2,893	11.8%
Profit after tax	Rs m	7,253	8,291	14.3%
Gross profit margin	%	17.4	15.2
Effective tax rate	%	26.3	25.9
Net profit margin	%	10.6	9.5

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BERGER PAINTS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 36 billion as compared to Rs 22 billion in FY21, thereby witnessing an increase of 64.6%.
• Long-term debt down at Rs 98 million as compared to Rs 2 billion during FY21, a fall of 94.1%.
• Current assets rose 32% and stood at Rs 48 billion, while fixed assets rose 18% and stood at Rs 47 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 95 billion as against Rs 76 billion during FY21, thereby witnessing a growth of 25%.

BERGER PAINTS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	33,743	39,202	16.2
Current Liabilities	Rs m	21,719	35,758	64.6
Long-term Debt	Rs m	1,657	98	-94.1
Total Liabilities	Rs m	76,100	94,760	24.5
Current assets	Rs m	36,276	47,815	31.8
Fixed Assets	Rs m	39,824	46,945	17.9
Total Assets	Rs m	76,100	94,760	24.5

BERGER PAINTS Cash Flow Statement Analysis

• BERGER PAINTS's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 14.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -781 million, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -329 million from the Rs 573 million net cash flows seen during FY21.

BERGER PAINTS 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	7,958	5,665	-28.8%
Cash Flow from Investing Activities	Rs m	-4,567	-5,213	-
Cash Flow from Financing Activities	Rs m	-2,818	-781	-
Net Cash Flow	Rs m	573	-329	-

Current Valuations for BERGER PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an improvement from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 672.9, stands at 69.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.7 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 68.7 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	70.2	90.2
TTM Earnings per share	Rs	7.5	8.5
Diluted earnings per share	Rs	7.5	8.5
Price to Cash Flow	x	79.3	68.7
TTM P/E ratio	x	102.4	69.7
Price / Book Value ratio	x	18.1	18.5
Market Cap	Rs m	610,143	724,874
Dividends per share (Unadj.)	Rs	2.8	3.1

Ratio Analysis for BERGER PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 deteriorated and stood at 23.1x during FY22, from 23.3x 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 21.1% during FY22, from 21.5% 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 29.7% during FY22, from 29.0% 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 9.3% during FY22, from 10.1% 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	1.3
Debtors’ Days	Days	5	4
Interest coverage	x	23.3	23.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.1	9.3
Return on equity	%	21.5	21.1
Return on capital employed	%	29.0	29.7

To see how BERGER PAINTS has performed over the last 5 years, please visit here.

BERGER PAINTS Share Price Performance

Over the last one year, BERGER PAINTS share price has moved down from Rs 838.3 to Rs 672.9, registering a loss of Rs 165.5 or around 19.7%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

(To know more, check out historical annual results for BERGER PAINTS and quarterly results for BERGER PAINTS)

Read: Latest Annual Report Analysis of BERGER PAINTS