Markets will remain closed on May 01, 2024 on account of Maharashtra Day.

ELGI RUBBER 2021-22 Annual Report Analysis

Sat, 20 Aug

ELGI RUBBER 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.

ELGI RUBBER Income Statement Analysis

• Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.7% in FY22 as against 6.1% in FY21.
• Depreciation charges increased by 9.0% and finance costs increased by 0.6% YoY, respectively.
• Other income grew by 45.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.3% in FY21 to 4.2% in FY22.

ELGI RUBBER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,431	3,896	13.5%
Other income	Rs m	144	209	45.1%
Total Revenues	Rs m	3,575	4,105	14.8%
Gross profit	Rs m	209	-28	NA
Depreciation	Rs m	166	181	9.0%
Interest	Rs m	155	156	0.6%
Profit before tax	Rs m	32	-156	NA
Tax	Rs m	21	8	-63.7%
Profit after tax	Rs m	11	-164	NA
Gross profit margin	%	6.1	-0.7
Effective tax rate	%	66.1	-4.9
Net profit margin	%	0.3	-4.2

WATCH NOW: Top-5 Stocks in India's $10 Trillion Rally

ELGI RUBBER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 16.1%.
• Long-term debt down at Rs 566 million as compared to Rs 769 million during FY21, a fall of 26.4%.
• Current assets rose 1% and stood at Rs 2 billion, while fixed assets rose 2% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 1%.

ELGI RUBBER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,832	1,715	-6.4
Current Liabilities	Rs m	2,341	2,718	16.1
Long-term Debt	Rs m	769	566	-26.4
Total Liabilities	Rs m	4,656	4,711	1.2
Current assets	Rs m	2,165	2,177	0.6
Fixed Assets	Rs m	2,491	2,534	1.7
Total Assets	Rs m	4,656	4,711	1.2

ELGI RUBBER Cash Flow Statement Analysis

• ELGI RUBBER's cash flow from operating activities (CFO) during FY22 stood at Rs 95 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -94 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -58 million, an improvement of 88% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -57 million from the Rs 45 million net cash flows seen during FY21.

ELGI RUBBER 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	492	95	-80.7%
Cash Flow from Investing Activities	Rs m	22	-94	-
Cash Flow from Financing Activities	Rs m	-469	-58	-
Net Cash Flow	Rs m	45	-57	-

Current Valuations for ELGI RUBBER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.3, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.2, stands at -14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 109.0 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	68.6	77.8
TTM Earnings per share	Rs	0.2	-3.3
Diluted earnings per share	Rs	0.2	-3.3
Price to Cash Flow	x	0.0	109.0
TTM P/E ratio	x	0.0	-14.2
Price / Book Value ratio	x	0.6	1.1
Market Cap	Rs m	1,145	1,861
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ELGI RUBBER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY22, from 0.9x 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 0.0x during FY22, from 1.2x 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 -9.5% during FY22, from 0.6% 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 0.0% during FY22, from 7.2% 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 -0.2% during FY22, from 3.6% 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	0.9	0.8
Debtors’ Days	Days	57	69
Interest coverage	x	1.2	0.0
Debt to equity ratio	x	0.4	0.3
Return on assets	%	3.6	-0.2
Return on equity	%	0.6	-9.5
Return on capital employed	%	7.2	0.0

To see how ELGI RUBBER has performed over the last 5 years, please visit here.

ELGI RUBBER Share Price Performance

Over the last one year, ELGI RUBBER share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 1.1% over the year.

(To know more, check out historical annual results for ELGI RUBBER and quarterly results for ELGI RUBBER)

Read: Latest Annual Report Analysis of ELGI RUBBER