KOTHARI PET. 2021-22 Annual Report Analysis

Thu, 8 Sep

KOTHARI PET. 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.

KOTHARI PET. Income Statement Analysis

• Operating income during the year rose 68.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY22 as against 15.0% in FY21.
• Depreciation charges increased by 0.5% and finance costs decreased by 30.7% YoY, respectively.
• Other income grew by 17.1% YoY.
• Net profit for the year grew by 45.9% YoY.
• Net profit margins during the year declined from 9.9% in FY21 to 8.6% in FY22.

KOTHARI PET. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,268	3,815	68.2%
Other income	Rs m	39	45	17.1%
Total Revenues	Rs m	2,307	3,861	67.3%
Gross profit	Rs m	340	477	40.3%
Depreciation	Rs m	55	55	0.5%
Interest	Rs m	9	6	-30.7%
Profit before tax	Rs m	315	461	46.4%
Tax	Rs m	89	132	47.6%
Profit after tax	Rs m	225	329	45.9%
Gross profit margin	%	15.0	12.5
Effective tax rate	%	28.4	28.6
Net profit margin	%	9.9	8.6

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KOTHARI PET. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 487 million as compared to Rs 360 million in FY21, thereby witnessing an increase of 35.4%.
• Long-term debt stood at Rs 83 million as compared to Rs 12 million during FY21, a growth of 584.8%.
• Current assets rose 54% and stood at Rs 1 billion, while fixed assets rose 15% 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 31%.

KOTHARI PET. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,231	1,558	26.6
Current Liabilities	Rs m	360	487	35.4
Long-term Debt	Rs m	12	83	584.8
Total Liabilities	Rs m	1,707	2,230	30.7
Current assets	Rs m	694	1,065	53.5
Fixed Assets	Rs m	1,013	1,165	15.0
Total Assets	Rs m	1,707	2,230	30.7

KOTHARI PET. Cash Flow Statement Analysis

• KOTHARI PET.'s cash flow from operating activities (CFO) during FY22 stood at Rs 184 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -320 million, an improvement of 136.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 77 million, an improvement of 293% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -59 million from the Rs 128 million net cash flows seen during FY21.

KOTHARI PET. 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	303	184	-39.3%
Cash Flow from Investing Activities	Rs m	-135	-320	-
Cash Flow from Financing Activities	Rs m	-40	77	-
Net Cash Flow	Rs m	128	-59	-

Current Valuations for KOTHARI PET.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.7, stands at 16.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	38.5	64.8
TTM Earnings per share	Rs	3.8	5.6
Diluted earnings per share	Rs	3.8	5.6
Price to Cash Flow	x	0.0	10.9
TTM P/E ratio	x	0.0	16.2
Price / Book Value ratio	x	1.0	2.7
Market Cap	Rs m	1,234	4,193
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KOTHARI PET.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY22, from 1.9x 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 75.8x during FY22, from 36.4x 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 21.1% during FY22, from 18.3% 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 improved and stood at 28.5% 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 improved and stood at 15.0% during FY22, from 13.7% 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	1.9	2.2
Debtors’ Days	Days	303	277
Interest coverage	x	36.4	75.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	13.7	15.0
Return on equity	%	18.3	21.1
Return on capital employed	%	26.0	28.5

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

KOTHARI PET. Share Price Performance

Over the last one year, KOTHARI PET. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 1.0% over the year.

(To know more, check out historical annual results for KOTHARI PET. and quarterly results for KOTHARI PET.)

Read: Latest Annual Report Analysis of KOTHARI PET.