DHANUKA AGRITECH 2021-22 Annual Report Analysis

Tue, 12 Jul

DHANUKA AGRITECH 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.

DHANUKA AGRITECH Income Statement Analysis

• Operating income during the year rose 6.5% 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 17.8% in FY22 as against 19.4% in FY21.
• Depreciation charges increased by 7.2% and finance costs increased by 20.8% YoY, respectively.
• Other income declined by 0.3% YoY.
• Net profit for the year declined by 0.8% YoY.
• Net profit margins during the year declined from 15.2% in FY21 to 14.1% in FY22.

DHANUKA AGRITECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	13,875	14,778	6.5%
Other income	Rs m	337	336	-0.3%
Total Revenues	Rs m	14,212	15,114	6.3%
Gross profit	Rs m	2,693	2,637	-2.1%
Depreciation	Rs m	152	163	7.2%
Interest	Rs m	28	34	20.8%
Profit before tax	Rs m	2,849	2,776	-2.6%
Tax	Rs m	744	687	-7.6%
Profit after tax	Rs m	2,106	2,089	-0.8%
Gross profit margin	%	19.4	17.8
Effective tax rate	%	26.1	24.7
Net profit margin	%	15.2	14.1

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DHANUKA AGRITECH Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 10.3%.
• Current assets rose 11% and stood at Rs 10 billion, while fixed assets rose 31% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 13 billion as against Rs 11 billion during FY21, thereby witnessing a growth of 16%.

DHANUKA AGRITECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,962	9,604	20.6
Current Liabilities	Rs m	2,759	3,044	10.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,310	13,122	16.0
Current assets	Rs m	8,583	9,547	11.2
Fixed Assets	Rs m	2,727	3,575	31.1
Total Assets	Rs m	11,310	13,122	16.0

DHANUKA AGRITECH Cash Flow Statement Analysis

• DHANUKA AGRITECH's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -426 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -608 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 9 million from the Rs -246 million net cash flows seen during FY21.

DHANUKA AGRITECH 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	2,311	1,043	-54.9%
Cash Flow from Investing Activities	Rs m	-1,266	-426	-
Cash Flow from Financing Activities	Rs m	-1,291	-608	-
Net Cash Flow	Rs m	-246	9	-

Current Valuations for DHANUKA AGRITECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.8, an decline from the EPS of Rs 45.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 702.1, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	297.9	317.3
TTM Earnings per share	Rs	45.2	44.8
Diluted earnings per share	Rs	45.2	44.8
Price to Cash Flow	x	14.2	17.5
TTM P/E ratio	x	15.3	15.7
Price / Book Value ratio	x	3.7	4.1
Market Cap	Rs m	29,230	39,320
Dividends per share (Unadj.)	Rs	2.0	14.0

Ratio Analysis for DHANUKA AGRITECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x 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 deteriorated and stood at 81.8x during FY22, from 101.2x 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 21.8% during FY22, from 26.4% 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 29.3% during FY22, from 36.1% 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 16.2% during FY22, from 18.9% 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	3.1
Debtors’ Days	Days	638	698
Interest coverage	x	101.2	81.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.9	16.2
Return on equity	%	26.4	21.8
Return on capital employed	%	36.1	29.3

To see how DHANUKA AGRITECH has performed over the last 5 years, please visit here.

DHANUKA AGRITECH Share Price Performance

Over the last one year, DHANUKA AGRITECH share price has moved down from Rs 1,002.0 to Rs 702.1, registering a loss of Rs 299.9 or around 29.9%.

Overall, the S&P BSE SENSEX is up 2.5% over the year.

(To know more, check out historical annual results for DHANUKA AGRITECH and quarterly results for DHANUKA AGRITECH)

Read: Latest Annual Report Analysis of DHANUKA AGRITECH