EASTERN SILK IND 2021-22 Annual Report Analysis

Wed, 29 Jun

EASTERN SILK IND 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.

EASTERN SILK IND Income Statement Analysis

• Operating income during the year fell 19.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 154.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.3% in FY22 as against 6.3% in FY21.
• Depreciation charges decreased by 15.5% and finance costs decreased by 1.1% YoY, respectively.
• Other income grew by 15.1% YoY.
• Net profit for the year declined by 756.9% YoY.
• Net profit margins during the year declined from 1.2% in FY21 to 9.4% in FY22.

EASTERN SILK IND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	907	731	-19.3%
Other income	Rs m	13	14	15.1%
Total Revenues	Rs m	919	746	-18.9%
Gross profit	Rs m	57	-31	-154.3%
Depreciation	Rs m	48	40	-15.5%
Interest	Rs m	12	12	-1.1%
Profit before tax	Rs m	10	-69	-756.9%
Tax	Rs m	0	0	-100.0%
Profit after tax	Rs m	10	-69	-756.9%
Gross profit margin	%	6.3	-4.3
Effective tax rate	%	0.1	0.0
Net profit margin	%	1.2	-9.4

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EASTERN SILK IND 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 -1.0%.
• Long-term debt down at Rs 140 million as compared to Rs 140 million during FY21, a fall of 0.0%.
• Current assets fell 7% and stood at Rs 746 million, while fixed assets fell 6% and stood at Rs 444 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a fall of 7%.

EASTERN SILK IND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-223	-289	29.6
Current Liabilities	Rs m	1,813	1,794	-1.0
Long-term Debt	Rs m	140	140	0.0
Total Liabilities	Rs m	1,277	1,190	-6.8
Current assets	Rs m	807	746	-7.5
Fixed Assets	Rs m	470	444	-5.6
Total Assets	Rs m	1,277	1,190	-6.8

EASTERN SILK IND Cash Flow Statement Analysis

• EASTERN SILK IND's cash flow from operating activities (CFO) during FY22 stood at Rs 12 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -13 million, an improvement of 88.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 million, an improvement of 118% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 million from the Rs 4 million net cash flows seen during FY21.

EASTERN SILK IND 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	20	12	-40.5%
Cash Flow from Investing Activities	Rs m	-7	-13	-
Cash Flow from Financing Activities	Rs m	-10	2	-
Net Cash Flow	Rs m	4	1	-84.8%

Current Valuations for EASTERN SILK IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.9, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.7, stands at -5.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -21.9 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	11.5	9.3
TTM Earnings per share	Rs	0.1	-0.9
Diluted earnings per share	Rs	0.1	-0.9
Price to Cash Flow	x	2.2	-21.9
TTM P/E ratio	x	12.1	-5.4
Price / Book Value ratio	x	-0.5	-2.2
Market Cap	Rs m	109	622
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EASTERN SILK IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY22, from 0.4x 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 -4.8x during FY22, from 1.9x 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 23.8% during FY22, from -4.7% 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 38.3% during FY22, from -27.0% 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 -4.8% during FY22, from 1.7% 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	0.4	0.4
Debtors’ Days	Days	998	1,176
Interest coverage	x	1.9	-4.8
Debt to equity ratio	x	-0.6	-0.5
Return on assets	%	1.7	-4.8
Return on equity	%	-4.7	23.8
Return on capital employed	%	-27.0	38.3

To see how EASTERN SILK IND has performed over the last 5 years, please visit here.

EASTERN SILK IND Share Price Performance

Over the last one year, EASTERN SILK IND share price has moved down from Rs 4.8 to Rs 4.7, registering a loss of Rs 0.1 or around 1.7%.

Overall, the S&P BSE SENSEX is up 0.6% over the year.

(To know more, check out historical annual results for EASTERN SILK IND and quarterly results for EASTERN SILK IND)