FINE ORGANIC INDUSTRIES 2021-22 Annual Report Analysis

Fri, 29 Jul

FINE ORGANIC 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.

FINE ORGANIC INDUSTRIES Income Statement Analysis

• Operating income during the year rose 65.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 82.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY22 as against 17.6% in FY21.
• Depreciation charges decreased by 14.7% and finance costs decreased by 16.7% YoY, respectively.
• Other income grew by 93.4% YoY.
• Net profit for the year grew by 114.3% YoY.
• Net profit margins during the year grew from 10.7% in FY21 to 13.9% in FY22.

FINE ORGANIC INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,332	18,763	65.6%
Other income	Rs m	171	331	93.4%
Total Revenues	Rs m	11,503	19,093	66.0%
Gross profit	Rs m	1,993	3,645	82.9%
Depreciation	Rs m	468	399	-14.7%
Interest	Rs m	61	51	-16.7%
Profit before tax	Rs m	1,635	3,526	115.7%
Tax	Rs m	418	918	119.6%
Profit after tax	Rs m	1,216	2,607	114.3%
Gross profit margin	%	17.6	19.4
Effective tax rate	%	25.6	26.0
Net profit margin	%	10.7	13.9

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FINE ORGANIC INDUSTRIES 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 62.0%.
• Long-term debt down at Rs 251 million as compared to Rs 567 million during FY21, a fall of 55.8%.
• Current assets rose 43% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 31%.

FINE ORGANIC INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,314	9,592	31.1
Current Liabilities	Rs m	1,551	2,512	62.0
Long-term Debt	Rs m	567	251	-55.8
Total Liabilities	Rs m	9,397	12,280	30.7
Current assets	Rs m	6,205	8,879	43.1
Fixed Assets	Rs m	3,192	3,401	6.5
Total Assets	Rs m	9,397	12,280	30.7

FINE ORGANIC INDUSTRIES Cash Flow Statement Analysis

• FINE ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 670 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -563 million, an improvement of 39.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -436 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -329 million from the Rs 533 million net cash flows seen during FY21.

FINE ORGANIC 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	1,343	670	-50.1%
Cash Flow from Investing Activities	Rs m	-403	-563	-
Cash Flow from Financing Activities	Rs m	-407	-436	-
Net Cash Flow	Rs m	533	-329	-

Current Valuations for FINE ORGANIC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.0, an improvement from the EPS of Rs 39.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,370.3, stands at 63.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.2 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.3 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	369.6	612.0
TTM Earnings per share	Rs	39.7	85.0
Diluted earnings per share	Rs	39.7	85.0
Price to Cash Flow	x	41.6	34.3
TTM P/E ratio	x	57.5	63.1
Price / Book Value ratio	x	10.7	10.8
Market Cap	Rs m	77,942	103,266
Dividends per share (Unadj.)	Rs	11.0	9.0

Ratio Analysis for FINE ORGANIC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY22, from 4.0x 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 70.0x during FY22, from 27.7x 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 27.2% during FY22, from 16.6% 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 improved and stood at 36.3% during FY22, from 21.5% 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 21.6% during FY22, from 13.6% 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	4.0	3.5
Debtors’ Days	Days	521	586
Interest coverage	x	27.7	70.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.6	21.6
Return on equity	%	16.6	27.2
Return on capital employed	%	21.5	36.3

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

FINE ORGANIC INDUSTRIES Share Price Performance

Over the last one year, FINE ORGANIC INDUSTRIES share price has moved up from Rs 2,932.9 to Rs 5,370.3, registering a gain of Rs 2,437.4 or around 83.1%.

Overall, the S&P BSE SENSEX is up 9.1% over the year.

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

Read: Latest Annual Report Analysis of FINE ORGANIC INDUSTRIES