GRANULES INDIA 2021-22 Annual Report Analysis

Sun, 10 Jul

GRANULES INDIA 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.

GRANULES INDIA Income Statement Analysis

• Operating income during the year rose 16.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY22 as against 26.4% in FY21.
• Depreciation charges increased by 4.7% and finance costs decreased by 11.7% YoY, respectively.
• Other income declined by 32.2% YoY.
• Net profit for the year declined by 24.9% YoY.
• Net profit margins during the year declined from 17.0% in FY21 to 11.0% in FY22.

GRANULES INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	32,375	37,649	16.3%
Other income	Rs m	269	182	-32.2%
Total Revenues	Rs m	32,644	37,831	15.9%
Gross profit	Rs m	8,552	7,216	-15.6%
Depreciation	Rs m	1,515	1,586	4.7%
Interest	Rs m	263	232	-11.7%
Profit before tax	Rs m	7,044	5,580	-20.8%
Tax	Rs m	1,549	1,452	-6.2%
Profit after tax	Rs m	5,495	4,128	-24.9%
Gross profit margin	%	26.4	19.2
Effective tax rate	%	22.0	26.0
Net profit margin	%	17.0	11.0

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GRANULES INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 16 billion as compared to Rs 12 billion in FY21, thereby witnessing an increase of 39.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 30.0%.
• Current assets rose 25% and stood at Rs 25 billion, while fixed assets rose 17% and stood at Rs 20 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 45 billion as against Rs 37 billion during FY21, thereby witnessing a growth of 22%.

GRANULES INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	21,510	25,698	19.5
Current Liabilities	Rs m	11,731	16,416	39.9
Long-term Debt	Rs m	3,338	2,337	-30.0
Total Liabilities	Rs m	37,127	45,115	21.5
Current assets	Rs m	19,970	25,050	25.4
Fixed Assets	Rs m	17,157	20,065	17.0
Total Assets	Rs m	37,127	45,115	21.5

GRANULES INDIA Cash Flow Statement Analysis

• GRANULES INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 37.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 163% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs -1 billion net cash flows seen during FY21.

GRANULES INDIA 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	4,325	3,321	-23.2%
Cash Flow from Investing Activities	Rs m	-2,771	-3,801	-
Cash Flow from Financing Activities	Rs m	-2,993	1,900	-
Net Cash Flow	Rs m	-1,441	1,429	-

Current Valuations for GRANULES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an decline from the EPS of Rs 22.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.3, stands at 16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	130.7	151.8
TTM Earnings per share	Rs	22.2	16.6
Diluted earnings per share	Rs	22.2	16.6
Price to Cash Flow	x	10.7	14.5
TTM P/E ratio	x	13.7	16.8
Price / Book Value ratio	x	3.3	3.2
Market Cap	Rs m	71,337	83,076
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for GRANULES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.7x 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 25.0x during FY22, from 27.8x 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 16.1% during FY22, from 25.5% 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 declined and down at 20.7% during FY22, from 29.4% 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 9.7% during FY22, from 15.5% 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	1.7	1.5
Debtors’ Days	Days	863	897
Interest coverage	x	27.8	25.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	15.5	9.7
Return on equity	%	25.5	16.1
Return on capital employed	%	29.4	20.7

To see how GRANULES INDIA has performed over the last 5 years, please visit here.

GRANULES INDIA Share Price Performance

Over the last one year, GRANULES INDIA share price has moved down from Rs 366.4 to Rs 279.3, registering a loss of Rs 87.1 or around 23.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,160.4 (up 0.4%). Over the last one year it has moved down from 25,875.4 to 22,160.4, a loss of 3,715 points (down 14.4%).

Overall, the S&P BSE SENSEX is up 3.1% over the year.

(To know more, check out historical annual results for GRANULES INDIA and quarterly results for GRANULES INDIA)

Read: Latest Annual Report Analysis of GRANULES INDIA