EVEREADY INDUSTRIES 2021-22 Annual Report Analysis

Wed, 8 Jun

EVEREADY INDUSTRIES 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.

EVEREADY INDUSTRIES Income Statement Analysis

• Operating income during the year fell 3.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 129.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.0% in FY22 as against 32.5% in FY21.
• Depreciation charges increased by 0.9% and finance costs decreased by 7.7% YoY, respectively.
• Other income declined by 29.3% YoY.
• Net profit for the year declined by 115.6% YoY.
• Net profit margins during the year grew from 24.6% in FY21 to 4.0% in FY22.

EVEREADY INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,490	12,068	-3.4%
Other income	Rs m	67	47	-29.3%
Total Revenues	Rs m	12,556	12,115	-3.5%
Gross profit	Rs m	-4,057	1,206	-129.7%
Depreciation	Rs m	272	275	0.9%
Interest	Rs m	520	480	-7.7%
Profit before tax	Rs m	-4,784	498	-110.4%
Tax	Rs m	-1,709	20	-101.1%
Profit after tax	Rs m	-3,074	478	-115.6%
Gross profit margin	%	-32.5	10.0
Effective tax rate	%	35.7	3.9
Net profit margin	%	-24.6	4.0

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EVEREADY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 4 billion as compared to Rs 5 billion in FY21, thereby witnessing an decrease of -19.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY21, a fall of 16.7%.
• Current assets fell 17% and stood at Rs 4 billion, while fixed assets rose 0% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 9 billion during FY21, thereby witnessing a fall of 9%.

EVEREADY INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,449	2,901	18.4
Current Liabilities	Rs m	5,428	4,369	-19.5
Long-term Debt	Rs m	2,204	1,835	-16.7
Total Liabilities	Rs m	9,091	8,236	-9.4
Current assets	Rs m	4,987	4,127	-17.3
Fixed Assets	Rs m	4,104	4,109	0.1
Total Assets	Rs m	9,091	8,236	-9.4

EVEREADY INDUSTRIES Cash Flow Statement Analysis

• EVEREADY INDUSTRIES'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 -553 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -292 million from the Rs 634 million net cash flows seen during FY21.

EVEREADY INDUSTRIES 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	1,729	1,340	-22.5%
Cash Flow from Investing Activities	Rs m	-1,053	-553	-
Cash Flow from Financing Activities	Rs m	-40	-1,080	-
Net Cash Flow	Rs m	634	-292	-

Current Valuations for EVEREADY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs -42.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 315.4, stands at 47.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 32.3 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	171.8	166.0
TTM Earnings per share	Rs	-42.3	6.6
Diluted earnings per share	Rs	-42.3	6.6
Price to Cash Flow	x	-7.0	32.3
TTM P/E ratio	x	-6.4	47.9
Price / Book Value ratio	x	5.7	8.4
Market Cap	Rs m	13,854	24,305
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EVEREADY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x 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 improved and stood at 2.0x during FY22, from -8.2x 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 improved and stood at 16.5% during FY22, from -125.5% 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 20.7% during FY22, from -91.6% 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 improved and stood at 11.6% during FY22, from -28.1% 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	0.9
Debtors’ Days	Days	104	108
Interest coverage	x	-8.2	2.0
Debt to equity ratio	x	0.9	0.6
Return on assets	%	-28.1	11.6
Return on equity	%	-125.5	16.5
Return on capital employed	%	-91.6	20.7

To see how EVEREADY INDUSTRIES has performed over the last 5 years, please visit here.

EVEREADY INDUSTRIES Share Price Performance

Over the last one year, EVEREADY INDUSTRIES share price has moved down from Rs 341.9 to Rs 315.4, registering a loss of Rs 26.6 or around 7.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 36,410.3 (up 0.2%). Over the last one year it has moved up from 35,132.6 to 36,410.3, a gain of 1,278 points (up 3.6%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for EVEREADY INDUSTRIES and quarterly results for EVEREADY INDUSTRIES)

Read: Latest Annual Report Analysis of EVEREADY INDUSTRIES