OLECTRA GREENTECH 2021-22 Annual Report Analysis

Mon, 12 Sep

OLECTRA GREENTECH 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.

OLECTRA GREENTECH Income Statement Analysis

• Operating income during the year rose 110.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 311.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY22 as against 7.2% in FY21.
• Depreciation charges increased by 120.1% and finance costs increased by 23.7% YoY, respectively.
• Other income declined by 32.9% YoY.
• Net profit for the year grew by 337.9% YoY.
• Net profit margins during the year grew from 2.9% in FY21 to 6.0% in FY22.

OLECTRA GREENTECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,814	5,933	110.8%
Other income	Rs m	115	77	-32.9%
Total Revenues	Rs m	2,929	6,010	105.2%
Gross profit	Rs m	202	832	311.5%
Depreciation	Rs m	133	293	120.1%
Interest	Rs m	75	93	23.7%
Profit before tax	Rs m	109	523	381.0%
Tax	Rs m	28	170	505.6%
Profit after tax	Rs m	81	354	337.9%
Gross profit margin	%	7.2	14.0
Effective tax rate	%	25.7	32.4
Net profit margin	%	2.9	6.0

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OLECTRA GREENTECH 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 83.4%.
• Long-term debt stood at Rs 525 million as compared to Rs 39 million during FY21, a growth of 1236.0%.
• Current assets rose 36% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 4 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 28%.

OLECTRA GREENTECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,407	7,773	4.9
Current Liabilities	Rs m	1,802	3,305	83.4
Long-term Debt	Rs m	39	525	1,236.0
Total Liabilities	Rs m	9,268	11,904	28.4
Current assets	Rs m	5,772	7,847	35.9
Fixed Assets	Rs m	3,497	4,058	16.1
Total Assets	Rs m	9,268	11,904	28.4

OLECTRA GREENTECH Cash Flow Statement Analysis

• OLECTRA GREENTECH'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 -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 497 million, an improvement of 330% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 68 million from the Rs 101 million net cash flows seen during FY21.

OLECTRA GREENTECH 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	2,087	1,214	-41.8%
Cash Flow from Investing Activities	Rs m	-1,770	-1,643	-
Cash Flow from Financing Activities	Rs m	-216	497	-
Net Cash Flow	Rs m	101	68	-32.6%

Current Valuations for OLECTRA GREENTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 625.0, stands at 103.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 8.6 times.
• The company's price to cash flow (P/CF) ratio stood at 70.4 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	34.3	72.3
TTM Earnings per share	Rs	1.0	4.3
Diluted earnings per share	Rs	1.0	4.3
Price to Cash Flow	x	82.9	70.4
TTM P/E ratio	x	220.9	103.9
Price / Book Value ratio	x	1.6	5.9
Market Cap	Rs m	11,571	45,532
Dividends per share (Unadj.)	Rs	0.0	0.4

Ratio Analysis for OLECTRA GREENTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY22, from 3.2x 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 improved and stood at 6.6x during FY22, from 2.4x 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 4.5% during FY22, from 1.1% 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 7.4% during FY22, from 2.5% 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 3.7% during FY22, from 1.7% 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	3.2	2.4
Debtors’ Days	Days	3,419	2,249
Interest coverage	x	2.4	6.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	1.7	3.7
Return on equity	%	1.1	4.5
Return on capital employed	%	2.5	7.4

To see how OLECTRA GREENTECH has performed over the last 5 years, please visit here.

OLECTRA GREENTECH Share Price Performance

Over the last one year, OLECTRA GREENTECH share price has moved up from Rs 361.0 to Rs 625.0, registering a gain of Rs 264.1 or around 73.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 30,412.7 (up 0.4%). Over the last one year it has moved up from 22,692.8 to 30,412.7, a gain of 7,720 points (up 34.0%).

Overall, the S&P BSE SENSEX is up 3.4% over the year.

(To know more, check out historical annual results for OLECTRA GREENTECH and quarterly results for OLECTRA GREENTECH)

Read: Latest Annual Report Analysis of OLECTRA GREENTECH