INDIGO PAINTS 2021-22 Annual Report Analysis

Thu, 25 Aug

INDIGO PAINTS 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.

INDIGO PAINTS Income Statement Analysis

• Operating income during the year rose 25.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY22 as against 16.9% in FY21.
• Depreciation charges increased by 28.1% and finance costs decreased by 65.1% YoY, respectively.
• Other income grew by 203.1% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year declined from 9.8% in FY21 to 9.3% in FY22.

INDIGO PAINTS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,233	9,060	25.3%
Other income	Rs m	36	109	203.1%
Total Revenues	Rs m	7,269	9,169	26.1%
Gross profit	Rs m	1,225	1,360	11.0%
Depreciation	Rs m	244	313	28.1%
Interest	Rs m	38	13	-65.1%
Profit before tax	Rs m	979	1,143	16.7%
Tax	Rs m	271	302	11.8%
Profit after tax	Rs m	709	840	18.6%
Gross profit margin	%	16.9	15.0
Effective tax rate	%	27.6	26.5
Net profit margin	%	9.8	9.3

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INDIGO PAINTS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 6.9%.
• Current assets rose 6% and stood at Rs 6 billion, while fixed assets rose 29% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 8 billion during FY21, thereby witnessing a growth of 13%.

INDIGO PAINTS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,630	6,471	15.0
Current Liabilities	Rs m	2,284	2,442	6.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,112	9,199	13.4
Current assets	Rs m	5,424	5,724	5.5
Fixed Assets	Rs m	2,688	3,475	29.3
Total Assets	Rs m	8,112	9,199	13.4

INDIGO PAINTS Cash Flow Statement Analysis

• INDIGO PAINTS's cash flow from operating activities (CFO) during FY22 stood at Rs 652 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -692 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -53 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -93 million from the Rs 391 million net cash flows seen during FY21.

INDIGO PAINTS 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	1,213	652	-46.3%
Cash Flow from Investing Activities	Rs m	-3,179	-692	-
Cash Flow from Financing Activities	Rs m	2,357	-53	-
Net Cash Flow	Rs m	391	-93	-

Current Valuations for INDIGO PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.7, an improvement from the EPS of Rs 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,641.4, stands at 84.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.1 times, while the price to sales ratio stands at 8.6 times.
• The company's price to cash flow (P/CF) ratio stood at 86.2 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	152.1	190.5
TTM Earnings per share	Rs	14.9	17.7
Diluted earnings per share	Rs	14.9	17.7
Price to Cash Flow	x	119.3	86.2
TTM P/E ratio	x	160.4	84.5
Price / Book Value ratio	x	23.5	15.4
Market Cap	Rs m	132,456	99,337
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for INDIGO PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY22, from 2.4x 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 86.9x during FY22, from 26.7x 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 13.0% during FY22, from 12.6% 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 17.9% during FY22, from 18.1% 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 9.3% during FY22, from 9.2% 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	2.4	2.3
Debtors’ Days	Days	612	692
Interest coverage	x	26.7	86.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	9.3
Return on equity	%	12.6	13.0
Return on capital employed	%	18.1	17.9

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

INDIGO PAINTS Share Price Performance

Over the last one year, INDIGO PAINTS share price has moved down from Rs 2,597.6 to Rs 1,641.4, registering a loss of Rs 956.2 or around 36.8%.

Overall, the S&P BSE SENSEX is up 5.8% over the year.

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

Read: Latest Annual Report Analysis of INDIGO PAINTS