EVEREST ORGANICS 2021-22 Annual Report Analysis

Mon, 26 Dec

EVEREST ORGANICS 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.

EVEREST ORGANICS Income Statement Analysis

• Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 71.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.8% in FY22 as against 14.7% in FY21.
• Depreciation charges increased by 12.5% and finance costs decreased by 4.7% YoY, respectively.
• Other income grew by 108.2% YoY.
• Net profit for the year declined by 91.7% YoY.
• Net profit margins during the year declined from 8.8% in FY21 to 0.7% in FY22.

EVEREST ORGANICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,558	1,699	9.1%
Other income	Rs m	11	22	108.2%
Total Revenues	Rs m	1,568	1,721	9.7%
Gross profit	Rs m	228	64	-71.9%
Depreciation	Rs m	34	38	12.5%
Interest	Rs m	33	31	-4.7%
Profit before tax	Rs m	173	17	-89.9%
Tax	Rs m	36	6	-83.3%
Profit after tax	Rs m	137	11	-91.7%
Gross profit margin	%	14.7	3.8
Effective tax rate	%	20.6	34.3
Net profit margin	%	8.8	0.7

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EVEREST ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 774 million in FY21, thereby witnessing an increase of 45.5%.
• Long-term debt stood at Rs 110 million as compared to Rs 58 million during FY21, a growth of 89.0%.
• Current assets rose 32% and stood at Rs 1 billion, while fixed assets rose 30% and stood at Rs 601 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 31%.

EVEREST ORGANICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	466	468	0.5
Current Liabilities	Rs m	774	1,126	45.5
Long-term Debt	Rs m	58	110	89.0
Total Liabilities	Rs m	1,354	1,780	31.5
Current assets	Rs m	893	1,179	32.1
Fixed Assets	Rs m	461	601	30.3
Total Assets	Rs m	1,354	1,780	31.5

EVEREST ORGANICS Cash Flow Statement Analysis

• EVEREST ORGANICS's cash flow from operating activities (CFO) during FY22 stood at Rs 137 million, an improvement of 1.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -168 million, an improvement of 42.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 21 million, an improvement of 201% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -10 million from the Rs -3 million net cash flows seen during FY21.

EVEREST ORGANICS 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	135	137	1.5%
Cash Flow from Investing Activities	Rs m	-118	-168	-
Cash Flow from Financing Activities	Rs m	-21	21	-
Net Cash Flow	Rs m	-3	-10	-

Current Valuations for EVEREST ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 128.0, stands at -70.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 51.9 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	194.7	212.3
TTM Earnings per share	Rs	17.1	1.4
Diluted earnings per share	Rs	17.1	1.4
Price to Cash Flow	x	10.8	51.9
TTM P/E ratio	x	13.4	-70.1
Price / Book Value ratio	x	3.6	5.5
Market Cap	Rs m	1,660	2,564
Dividends per share (Unadj.)	Rs	1.5	0.5

Ratio Analysis for EVEREST ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.2x 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 1.6x during FY22, from 6.3x 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 2.4% during FY22, from 29.4% 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 8.4% during FY22, from 39.2% 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 2.4% during FY22, from 12.5% 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	1.2	1.0
Debtors’ Days	Days	1,186	1,473
Interest coverage	x	6.3	1.6
Debt to equity ratio	x	0.1	0.2
Return on assets	%	12.5	2.4
Return on equity	%	29.4	2.4
Return on capital employed	%	39.2	8.4

To see how EVEREST ORGANICS has performed over the last 5 years, please visit here.

EVEREST ORGANICS Share Price Performance

Over the last one year, EVEREST ORGANICS share price has moved down from Rs 250.2 to Rs 128.0, registering a loss of Rs 122.2 or around 48.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,183.3 (down 0.4%). Over the last one year it has moved down from 24,883.6 to 23,183.3, a loss of 1,700 points (down 6.8%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

(To know more, check out historical annual results for EVEREST ORGANICS and quarterly results for EVEREST ORGANICS)

Read: Latest Annual Report Analysis of EVEREST ORGANICS