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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of EVEREADY INDUSTRIES?

EVEREADY INDUSTRIES currently trades at Rs 318.7 per share. You can check out the latest share price performance of EVEREADY INDUSTRIES here...

What was the revenue of EVEREADY INDUSTRIES in FY22? How does it compare to earlier years?

The revenues of EVEREADY INDUSTRIES stood at Rs 12,115 m in FY22, which was down -3.5% compared to Rs 12,556 m reported in FY21.

EVEREADY INDUSTRIES' revenue has fallen from Rs 14,572 m in FY18 to Rs 12,115 m in FY22.

Over the past 5 years, the revenue of EVEREADY INDUSTRIES has grown at a CAGR of -4.5%.

What was the net profit of EVEREADY INDUSTRIES in FY22? How does it compare to earlier years?

The net profit of EVEREADY INDUSTRIES stood at Rs 478 m in FY22, which was down -115.6% compared to Rs -3,074 m reported in FY21.

This compares to a net profit of Rs 1,795 m in FY20 and a net profit of Rs 487 m in FY19.

Over the past 5 years, EVEREADY INDUSTRIES net profit has grown at a CAGR of -2.6%.

What does the cash flow statement of EVEREADY INDUSTRIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of EVEREADY INDUSTRIES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 1,340 m as compared to Rs 1,729 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -553 m as compared to Rs -1,053 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -1,080 m as compared to Rs -40 m in FY21.

Here's the cash flow statement of EVEREADY INDUSTRIES for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations8087011,3301,7291,340
From Investments-998-1,446-158-1,053-553
From Financial Activity-370762-1,136-40-1,080
Net Cashflow-5601739634-292

What does the Key Ratio analysis of EVEREADY INDUSTRIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of EVEREADY INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and down at 10.0% in FY22 as against 32.5% in FY21.
  • Net profit margins grew from 24.6% in FY21 to 4.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.6 as compared to 0.9 in FY21.

Here's the ratio/financial analysis of EVEREADY INDUSTRIES for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)7.36.322.4-32.510.0
Net Profit Margin (%)3.73.214.7-24.64.0
Debt to Equity Ratio (x)0.20.60.30.90.6

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