HIND.ORG.CHM 2021-22 Annual Report Analysis

Tue, 11 Oct

HIND.ORG.CHM 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.

HIND.ORG.CHM Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 2.4% in FY22 as against 6.4% in FY21.
• Depreciation charges decreased by 59.9% and finance costs decreased by 4.1% YoY, respectively.
• Other income grew by 56.5% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 2.0% in FY21 to 6.8% in FY22.

HIND.ORG.CHM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,152	4,337	4.4%
Other income	Rs m	215	336	56.5%
Total Revenues	Rs m	4,367	4,673	7.0%
Gross profit	Rs m	268	-104	NA
Depreciation	Rs m	29	12	-59.9%
Interest	Rs m	536	514	-4.1%
Profit before tax	Rs m	-83	-294	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-83	-294	NA
Gross profit margin	%	6.4	-2.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	-2.0	-6.8

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HIND.ORG.CHM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 12 billion in FY21, thereby witnessing an increase of 12.4%.
• Current assets rose 1% and stood at Rs 13 billion, while fixed assets rose 14% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 14 billion during FY21, thereby witnessing a growth of 2%.

HIND.ORG.CHM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	315	-18	NA
Current Liabilities	Rs m	11,718	13,173	12.4
Long-term Debt	Rs m	770	0	-100.0
Total Liabilities	Rs m	14,404	14,749	2.4
Current assets	Rs m	12,998	13,153	1.2
Fixed Assets	Rs m	1,406	1,597	13.6
Total Assets	Rs m	14,404	14,749	2.4

HIND.ORG.CHM Cash Flow Statement Analysis

• HIND.ORG.CHM's cash flow from operating activities (CFO) during FY22 stood at Rs 25 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 106 million, an improvement of 41.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -245 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -114 million from the Rs 94 million net cash flows seen during FY21.

HIND.ORG.CHM 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	-497	25	-
Cash Flow from Investing Activities	Rs m	75	106	41.2%
Cash Flow from Financing Activities	Rs m	515	-245	-
Net Cash Flow	Rs m	94	-114	-

Current Valuations for HIND.ORG.CHM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.4, an decline from the EPS of Rs -1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 28.5, stands at -13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -104.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -8.7 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	61.8	64.6
TTM Earnings per share	Rs	-1.2	-4.4
Diluted earnings per share	Rs	-1.2	-4.4
Price to Cash Flow	x	-49.5	-8.7
TTM P/E ratio	x	-27.8	-13.7
Price / Book Value ratio	x	5.5	-134.4
Market Cap	Rs m	1,750	2,460
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HIND.ORG.CHM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.1x 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 0.4x during FY22, from 0.8x 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 improved and stood at 1,604.2% during FY22, from -26.3% 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 -1,204.7% during FY22, from 41.8% 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 1.5% during FY22, from 3.1% 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	1.1	1.0
Debtors’ Days	Days	33	73
Interest coverage	x	0.8	0.4
Debt to equity ratio	x	2.4	0.0
Return on assets	%	3.1	1.5
Return on equity	%	-26.3	1,604.2
Return on capital employed	%	41.8	-1,204.7

To see how HIND.ORG.CHM has performed over the last 5 years, please visit here.

HIND.ORG.CHM Share Price Performance

Over the last one year, HIND.ORG.CHM share price has moved down from Rs 42.8 to Rs 28.5, registering a loss of Rs 14.3 or around 33.4%.

Overall, the S&P BSE SENSEX is down 3.2% over the year.

(To know more, check out historical annual results for HIND.ORG.CHM and quarterly results for HIND.ORG.CHM)