IGARASHI MOTORS 2021-22 Annual Report Analysis

Fri, 5 Aug

IGARASHI MOTORS 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.

IGARASHI MOTORS Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY22 as against 14.0% in FY21.
• Depreciation charges decreased by 0.5% and finance costs increased by 5.1% YoY, respectively.
• Other income declined by 27.3% YoY.
• Net profit for the year declined by 95.4% YoY.
• Net profit margins during the year declined from 4.8% in FY21 to 0.2% in FY22.

IGARASHI MOTORS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,329	5,564	4.4%
Other income	Rs m	95	69	-27.3%
Total Revenues	Rs m	5,424	5,633	3.9%
Gross profit	Rs m	745	471	-36.8%
Depreciation	Rs m	447	445	-0.5%
Interest	Rs m	69	72	5.1%
Profit before tax	Rs m	324	23	-92.9%
Tax	Rs m	68	11	-83.5%
Profit after tax	Rs m	256	12	-95.4%
Gross profit margin	%	14.0	8.5
Effective tax rate	%	21.0	48.6
Net profit margin	%	4.8	0.2

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IGARASHI MOTORS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -17.8%.
• Long-term debt stood at Rs 201 million as compared to Rs 192 million during FY21, a growth of 4.9%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 7 billion during FY21, thereby witnessing a fall of 3%.

IGARASHI MOTORS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,332	4,383	1.2
Current Liabilities	Rs m	2,206	1,813	-17.8
Long-term Debt	Rs m	192	201	4.9
Total Liabilities	Rs m	6,998	6,766	-3.3
Current assets	Rs m	3,125	2,743	-12.2
Fixed Assets	Rs m	3,873	4,023	3.9
Total Assets	Rs m	6,998	6,766	-3.3

IGARASHI MOTORS Cash Flow Statement Analysis

• IGARASHI MOTORS's cash flow from operating activities (CFO) during FY22 stood at Rs 728 million, an improvement of 79.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -546 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -237 million, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -55 million from the Rs 88 million net cash flows seen during FY21.

IGARASHI MOTORS 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	406	728	79.0%
Cash Flow from Investing Activities	Rs m	60	-546	-
Cash Flow from Financing Activities	Rs m	-378	-237	-
Net Cash Flow	Rs m	88	-55	-

Current Valuations for IGARASHI MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 348.9, stands at 921.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 30.6 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	169.3	176.7
TTM Earnings per share	Rs	8.1	0.4
Diluted earnings per share	Rs	8.1	0.4
Price to Cash Flow	x	12.4	30.6
TTM P/E ratio	x	34.1	921.1
Price / Book Value ratio	x	2.0	3.2
Market Cap	Rs m	8,607	13,962
Dividends per share (Unadj.)	Rs	1.5	0.0

Ratio Analysis for IGARASHI MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY22, from 1.4x 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 deteriorated and stood at 1.3x during FY22, from 5.7x 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 0.3% during FY22, from 5.9% 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 declined and down at 2.1% during FY22, from 8.7% 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 declined and down at 1.2% during FY22, from 4.6% 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	1.4	1.5
Debtors’ Days	Days	1,144	884
Interest coverage	x	5.7	1.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	1.2
Return on equity	%	5.9	0.3
Return on capital employed	%	8.7	2.1

To see how IGARASHI MOTORS has performed over the last 5 years, please visit here.

IGARASHI MOTORS Share Price Performance

Over the last one year, IGARASHI MOTORS share price has moved down from Rs 507.2 to Rs 348.9, registering a loss of Rs 158.4 or around 31.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 29,677.8 (down 0.2%). Over the last one year it has moved up from 23,845.6 to 29,677.8, a gain of 5,832 points (up 24.5%).

Overall, the S&P BSE SENSEX is up 8.7% over the year.

(To know more, check out historical annual results for IGARASHI MOTORS and quarterly results for IGARASHI MOTORS)

Read: Latest Annual Report Analysis of IGARASHI MOTORS