CONTAINER CORPORATION 2021-22 Annual Report Analysis

Mon, 12 Sep

CONTAINER CORPORATION 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.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY22 as against 15.6% in FY21.
• Depreciation charges increased by 1.5% and finance costs increased by 44.8% YoY, respectively.
• Other income declined by 8.6% YoY.
• Net profit for the year grew by 110.2% YoY.
• Net profit margins during the year grew from 7.8% in FY21 to 13.8% in FY22.

CONTAINER CORPORATION Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	64,271	76,527	19.1%
Other income	Rs m	2,704	2,471	-8.6%
Total Revenues	Rs m	66,974	78,998	18.0%
Gross profit	Rs m	10,001	17,717	77.1%
Depreciation	Rs m	5,534	5,614	1.5%
Interest	Rs m	434	628	44.8%
Profit before tax	Rs m	6,737	13,945	107.0%
Tax	Rs m	1,730	3,422	97.8%
Profit after tax	Rs m	5,007	10,523	110.2%
Gross profit margin	%	15.6	23.2
Effective tax rate	%	25.7	24.5
Net profit margin	%	7.8	13.8

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CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 13 billion in FY21, thereby witnessing an increase of 7.2%.
• Long-term debt down at Rs 555 million as compared to Rs 618 million during FY21, a fall of 10.2%.
• Current assets rose 14% and stood at Rs 37 billion, while fixed assets rose 1% and stood at Rs 92 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 129 billion as against Rs 123 billion during FY21, thereby witnessing a growth of 4%.

CONTAINER CORPORATION Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	101,873	107,556	5.6
Current Liabilities	Rs m	13,296	14,253	7.2
Long-term Debt	Rs m	618	555	-10.2
Total Liabilities	Rs m	123,409	128,953	4.5
Current assets	Rs m	32,169	36,761	14.3
Fixed Assets	Rs m	91,240	92,192	1.0
Total Assets	Rs m	123,409	128,953	4.5

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY22 stood at Rs 14 billion, an improvement of 33.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 billion from the Rs 6 billion net cash flows seen during FY21.

CONTAINER CORPORATION 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	10,291	13,694	33.1%
Cash Flow from Investing Activities	Rs m	337	-10,702	-
Cash Flow from Financing Activities	Rs m	-4,566	-5,950	-
Net Cash Flow	Rs m	6,062	-2,958	-

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 757.0, stands at 43.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 6.0 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	105.5	125.6
TTM Earnings per share	Rs	8.2	17.3
Diluted earnings per share	Rs	8.2	17.3
Price to Cash Flow	x	34.5	24.5
TTM P/E ratio	x	77.6	43.1
Price / Book Value ratio	x	2.8	3.7
Market Cap	Rs m	288,181	394,853
Dividends per share (Unadj.)	Rs	5.0	9.0

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x 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 23.2x during FY22, from 16.5x 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 9.8% during FY22, from 4.9% 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 13.5% during FY22, from 7.0% 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 improved and stood at 8.6% during FY22, from 4.4% 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	2.6
Debtors’ Days	Days	1	1
Interest coverage	x	16.5	23.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.4	8.6
Return on equity	%	4.9	9.8
Return on capital employed	%	7.0	13.5

To see how CONTAINER CORPORATION has performed over the last 5 years, please visit here.

CONTAINER CORPORATION Share Price Performance

Over the last one year, CONTAINER CORPORATION share price has moved up from Rs 742.9 to Rs 757.0, registering a gain of Rs 14.2 or around 1.9%.

Overall, the S&P BSE SENSEX is up 3.4% over the year.

(To know more, check out historical annual results for CONTAINER CORPORATION and quarterly results for CONTAINER CORPORATION)

Read: Latest Annual Report Analysis of CONTAINER CORPORATION