GULSHAN POLYOLS 2021-22 Annual Report Analysis

Tue, 13 Sep

GULSHAN POLYOLS 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.

GULSHAN POLYOLS Income Statement Analysis

• Operating income during the year rose 43.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.6% in FY22 as against 17.0% in FY21.
• Depreciation charges decreased by 0.5% and finance costs decreased by 27.0% YoY, respectively.
• Other income declined by 21.5% YoY.
• Net profit for the year grew by 37.2% YoY.
• Net profit margins during the year declined from 8.1% in FY21 to 7.7% in FY22.

GULSHAN POLYOLS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,660	11,007	43.7%
Other income	Rs m	26	20	-21.5%
Total Revenues	Rs m	7,686	11,028	43.5%
Gross profit	Rs m	1,304	1,501	15.1%
Depreciation	Rs m	326	324	-0.5%
Interest	Rs m	68	50	-27.0%
Profit before tax	Rs m	937	1,148	22.5%
Tax	Rs m	316	295	-6.4%
Profit after tax	Rs m	621	852	37.2%
Gross profit margin	%	17.0	13.6
Effective tax rate	%	33.7	25.7
Net profit margin	%	8.1	7.7

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GULSHAN POLYOLS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 95.1%.
• Long-term debt stood at Rs 473 million as compared to Rs 105 million during FY21, a growth of 349.3%.
• Current assets rose 73% and stood at Rs 4 billion, while fixed assets rose 45% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 59%.

GULSHAN POLYOLS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,765	5,354	42.2
Current Liabilities	Rs m	1,043	2,035	95.1
Long-term Debt	Rs m	105	473	349.3
Total Liabilities	Rs m	5,071	8,041	58.6
Current assets	Rs m	2,444	4,227	73.0
Fixed Assets	Rs m	2,627	3,814	45.2
Total Assets	Rs m	5,071	8,041	58.6

GULSHAN POLYOLS Cash Flow Statement Analysis

• GULSHAN POLYOLS's cash flow from operating activities (CFO) during FY22 stood at Rs 644 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 2,885.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 320% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 946 million from the Rs 156 million net cash flows seen during FY21.

GULSHAN POLYOLS 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	975	644	-34.0%
Cash Flow from Investing Activities	Rs m	-47	-1,399	-
Cash Flow from Financing Activities	Rs m	-772	1,701	-
Net Cash Flow	Rs m	156	946	505.9%

Current Valuations for GULSHAN POLYOLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.4, an improvement from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.5, stands at 20.9 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	154.6	211.8
TTM Earnings per share	Rs	12.5	16.4
Diluted earnings per share	Rs	12.0	16.4
Price to Cash Flow	x	5.1	11.5
TTM P/E ratio	x	7.7	20.9
Price / Book Value ratio	x	0.9	2.5
Market Cap	Rs m	3,208	13,536
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for GULSHAN POLYOLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY22, from 2.3x 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 24.1x during FY22, from 14.8x 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 15.9% during FY22, from 16.5% 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 20.6% during FY22, from 26.0% 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 11.2% 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	2.3	2.1
Debtors’ Days	Days	469	397
Interest coverage	x	14.8	24.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	13.6	11.2
Return on equity	%	16.5	15.9
Return on capital employed	%	26.0	20.6

To see how GULSHAN POLYOLS has performed over the last 5 years, please visit here.

GULSHAN POLYOLS Share Price Performance

Over the last one year, GULSHAN POLYOLS share price has moved up from Rs 249.4 to Rs 279.5, registering a gain of Rs 30.2 or around 12.1%.

Overall, the S&P BSE SENSEX is up 3.9% over the year.

(To know more, check out historical annual results for GULSHAN POLYOLS and quarterly results for GULSHAN POLYOLS)

Read: Latest Annual Report Analysis of GULSHAN POLYOLS