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EMAMI 2021-22 Annual Report Analysis
Mon, 22 Aug

EMAMI 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.

EMAMI Income Statement Analysis

  • Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.7% in FY22 as against 30.7% in FY21.
  • Depreciation charges decreased by 8.8% and finance costs decreased by 61.8% YoY, respectively.
  • Other income grew by 35.5% YoY.
  • Net profit for the year grew by 85.5% YoY.
  • Net profit margins during the year grew from 15.9% in FY21 to 26.7% in FY22.

EMAMI Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 28,805 31,920 10.8%
Other income Rs m 703 953 35.5%
Total Revenues Rs m 29,508 32,873 11.4%
Gross profit Rs m 8,831 9,472 7.3%
Depreciation Rs m 3,670 3,348 -8.8%
Interest Rs m 133 51 -61.8%
Profit before tax Rs m 5,731 7,026 22.6%
Tax Rs m 1,142 -1,487 NA
Profit after tax Rs m 4,589 8,512 85.5%
Gross profit margin % 30.7 29.7
Effective tax rate % 19.9 -21.2
Net profit margin % 15.9 26.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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EMAMI Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 30.8%.
  • Current assets fell 5% and stood at Rs 11 billion, while fixed assets rose 22% and stood at Rs 17 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 25 billion during FY21, thereby witnessing a growth of 10%.

EMAMI Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 17,627 20,766 17.8
 
Current Liabilities Rs m 7,002 9,157 30.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 25,197 27,737 10.1
 
Current assets Rs m 11,268 10,728 -4.8
Fixed Assets Rs m 13,929 17,009 22.1
Total Assets Rs m 25,197 27,737 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EMAMI Cash Flow Statement Analysis

  • EMAMI's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 3.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 42% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 78 million from the Rs 90 million net cash flows seen during FY21.

EMAMI 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 9,215 6,439 -30.1%
Cash Flow from Investing Activities Rs m -2,269 -2,349 -
Cash Flow from Financing Activities Rs m -6,882 -4,021 -
Net Cash Flow Rs m 90 78 -13.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EMAMI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.3, an improvement from the EPS of Rs 10.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 491.3, stands at 25.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 6.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.6 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 64.8 72.4
TTM Earnings per share Rs 10.3 19.3
Diluted earnings per share Rs 10.4 19.3
Price to Cash Flow x 26.0 19.6
TTM P/E ratio x 46.9 25.5
Price / Book Value ratio x 8.6 11.2
Market Cap Rs m 151,501 231,902
Dividends per share (Unadj.) Rs 8.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EMAMI

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.6x 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 139.5x during FY22, from 44.2x 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 41.0% during FY22, from 26.0% 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 34.1% during FY22, from 33.3% 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 30.9% during FY22, from 18.7% 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 1.6 1.2
Debtors’ Days Days 294 367
Interest coverage x 44.2 139.5
Debt to equity ratio x 0.0 0.0
Return on assets % 18.7 30.9
Return on equity % 26.0 41.0
Return on capital employed % 33.3 34.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EMAMI Share Price Performance

Over the last one year, EMAMI share price has moved down from Rs 586.3 to Rs 491.3, registering a loss of Rs 95.0 or around 16.2%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 15,696.4 (up 0.3%). Over the last one year it has moved up from 14,229.4 to 15,696.4, a gain of 1,467 points (up 10.3%).

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

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

Annual Report FAQs

What is the current share price of EMAMI?

EMAMI currently trades at Rs 463.7 per share. You can check out the latest share price performance of EMAMI here...

What was the revenue of EMAMI in FY22? How does it compare to earlier years?

The revenues of EMAMI stood at Rs 32,873 m in FY22, which was up 11.4% compared to Rs 29,508 m reported in FY21.

EMAMI's revenue has grown from Rs 26,164 m in FY18 to Rs 32,873 m in FY22.

Over the past 5 years, the revenue of EMAMI has grown at a CAGR of 5.9%.

What was the net profit of EMAMI in FY22? How does it compare to earlier years?

The net profit of EMAMI stood at Rs 8,512 m in FY22, which was up 85.5% compared to Rs 4,589 m reported in FY21.

This compares to a net profit of Rs 3,083 m in FY20 and a net profit of Rs 3,047 m in FY19.

Over the past 5 years, EMAMI net profit has grown at a CAGR of 29.0%.

What does the cash flow statement of EMAMI reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of EMAMI reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 6,439 m as compared to Rs 9,215 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -2,349 m as compared to Rs -2,269 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -4,021 m as compared to Rs -6,882 m in FY21.

Here's the cash flow statement of EMAMI for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations5,8785,5375,3079,2156,439
From Investments-2,791-234-2,277-2,269-2,349
From Financial Activity-3,237-4,277-4,054-6,882-4,021
Net Cashflow-1221,003-1,0569078

What does the Key Ratio analysis of EMAMI reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of EMAMI reveals:

  • Operating profit margins witnessed a fall and stood at 29.7% in FY22 as against 30.7% in FY21.
  • Net profit margins grew from 15.9% in FY21 to 26.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of EMAMI for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)25.526.625.630.729.7
Net Profit Margin (%)12.211.311.615.926.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of EMAMI

 

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