BALRAMPUR CHINI 2021-22 Annual Report Analysis

Thu, 4 Aug

BALRAMPUR CHINI 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.

BALRAMPUR CHINI Income Statement Analysis

• Operating income during the year rose 0.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY22 as against 14.8% in FY21.
• Depreciation charges increased by 1.8% and finance costs decreased by 21.4% YoY, respectively.
• Other income grew by 19.5% YoY.
• Net profit for the year declined by 1.6% YoY.
• Net profit margins during the year declined from 9.6% in FY21 to 9.3% in FY22.

BALRAMPUR CHINI Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	48,117	48,460	0.7%
Other income	Rs m	279	334	19.5%
Total Revenues	Rs m	48,396	48,794	0.8%
Gross profit	Rs m	7,128	6,981	-2.1%
Depreciation	Rs m	1,119	1,139	1.8%
Interest	Rs m	393	309	-21.4%
Profit before tax	Rs m	5,896	5,868	-0.5%
Tax	Rs m	1,294	1,341	3.6%
Profit after tax	Rs m	4,602	4,527	-1.6%
Gross profit margin	%	14.8	14.4
Effective tax rate	%	21.9	22.9
Net profit margin	%	9.6	9.3

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BALRAMPUR CHINI Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 15 billion as compared to Rs 17 billion in FY21, thereby witnessing an decrease of -12.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY21, a fall of 40.5%.
• Current assets fell 14% and stood at Rs 24 billion, while fixed assets rose 9% and stood at Rs 27 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 51 billion as against Rs 52 billion during FY21, thereby witnessing a fall of 3%.

BALRAMPUR CHINI Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	26,191	27,697	5.7
Current Liabilities	Rs m	16,921	14,898	-12.0
Long-term Debt	Rs m	2,423	1,442	-40.5
Total Liabilities	Rs m	52,083	50,514	-3.0
Current assets	Rs m	27,544	23,765	-13.7
Fixed Assets	Rs m	24,539	26,748	9.0
Total Assets	Rs m	52,083	50,514	-3.0

BALRAMPUR CHINI Cash Flow Statement Analysis

• BALRAMPUR CHINI's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion, an improvement of 7.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 281.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs -10 million net cash flows seen during FY21.

BALRAMPUR CHINI 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	6,492	6,947	7.0%
Cash Flow from Investing Activities	Rs m	-811	-3,094	-
Cash Flow from Financing Activities	Rs m	-5,691	-3,854	-
Net Cash Flow	Rs m	-10	-1	-

Current Valuations for BALRAMPUR CHINI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an improvement from the EPS of Rs 21.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 381.0, stands at 17.2 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 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	229.1	237.5
TTM Earnings per share	Rs	21.9	22.2
Diluted earnings per share	Rs	22.6	22.2
Price to Cash Flow	x	7.7	12.9
TTM P/E ratio	x	9.5	17.2
Price / Book Value ratio	x	1.2	2.6
Market Cap	Rs m	32,513	73,368
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for BALRAMPUR CHINI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.6x 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 20.0x during FY22, from 16.0x 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 16.3% during FY22, from 17.6% 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 21.2% during FY22, from 22.0% 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 9.6% during FY22, from 9.6% 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	1.6	1.6
Debtors’ Days	Days	186	103
Interest coverage	x	16.0	20.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.6	9.6
Return on equity	%	17.6	16.3
Return on capital employed	%	22.0	21.2

To see how BALRAMPUR CHINI has performed over the last 5 years, please visit here.

BALRAMPUR CHINI Share Price Performance

Over the last one year, BALRAMPUR CHINI share price has moved up from Rs 344.5 to Rs 381.0, registering a gain of Rs 36.6 or around 10.6%.

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

(To know more, check out historical annual results for BALRAMPUR CHINI and quarterly results for BALRAMPUR CHINI)

Read: Latest Annual Report Analysis of BALRAMPUR CHINI