INDIAN TONERS 2021-22 Annual Report Analysis

Sat, 25 Jun

INDIAN TONERS 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.

INDIAN TONERS Income Statement Analysis

• Operating income during the year rose 34.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.3% in FY22 as against 17.2% in FY21.
• Depreciation charges decreased by 2.8% and finance costs increased by 9.1% YoY, respectively.
• Other income declined by 44.3% YoY.
• Net profit for the year grew by 56.4% YoY.
• Net profit margins during the year grew from 14.9% in FY21 to 17.3% in FY22.

INDIAN TONERS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	889	1,196	34.6%
Other income	Rs m	79	44	-44.3%
Total Revenues	Rs m	968	1,240	28.2%
Gross profit	Rs m	153	254	66.4%
Depreciation	Rs m	43	41	-2.8%
Interest	Rs m	4	4	9.1%
Profit before tax	Rs m	185	253	36.3%
Tax	Rs m	53	45	-14.3%
Profit after tax	Rs m	133	207	56.4%
Gross profit margin	%	17.2	21.3
Effective tax rate	%	28.5	17.9
Net profit margin	%	14.9	17.3

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INDIAN TONERS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 227 million as compared to Rs 202 million in FY21, thereby witnessing an increase of 12.3%.
• Current assets rose 22% and stood at Rs 688 million, while fixed assets fell 3% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 5%.

INDIAN TONERS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,588	1,653	4.1
Current Liabilities	Rs m	202	227	12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,838	1,923	4.6
Current assets	Rs m	564	688	22.0
Fixed Assets	Rs m	1,274	1,235	-3.1
Total Assets	Rs m	1,838	1,923	4.6

INDIAN TONERS Cash Flow Statement Analysis

• INDIAN TONERS's cash flow from operating activities (CFO) during FY22 stood at Rs 140 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 43 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -152 million, an improvement of 60% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 31 million from the Rs 89 million net cash flows seen during FY21.

INDIAN TONERS 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	194	140	-27.5%
Cash Flow from Investing Activities	Rs m	275	43	-84.5%
Cash Flow from Financing Activities	Rs m	-380	-152	-
Net Cash Flow	Rs m	89	31	-65.5%

Current Valuations for INDIAN TONERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.1, an improvement from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.8, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	81.9	110.2
TTM Earnings per share	Rs	12.2	19.1
Diluted earnings per share	Rs	12.2	19.1
Price to Cash Flow	x	8.7	7.6
TTM P/E ratio	x	11.5	7.9
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	1,124	1,882
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for INDIAN TONERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY22, from 2.8x 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 62.9x during FY22, from 50.6x 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 12.5% during FY22, from 8.4% 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 15.5% during FY22, from 11.9% 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 11.0% during FY22, from 7.4% 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	2.8	3.0
Debtors’ Days	Days	629	508
Interest coverage	x	50.6	62.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	11.0
Return on equity	%	8.4	12.5
Return on capital employed	%	11.9	15.5

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

INDIAN TONERS Share Price Performance

Over the last one year, INDIAN TONERS share price has moved down from Rs 183.6 to Rs 150.8, registering a loss of Rs 32.8 or around 17.9%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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

Read: Latest Annual Report Analysis of INDIAN TONERS