KANPUR PLASTIPACK 2021-22 Annual Report Analysis

Tue, 11 Oct

KANPUR PLASTIPACK 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.

KANPUR PLASTIPACK Income Statement Analysis

• Operating income during the year rose 36.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY22 as against 12.6% in FY21.
• Depreciation charges increased by 15.5% and finance costs increased by 54.3% YoY, respectively.
• Other income grew by 68.6% YoY.
• Net profit for the year declined by 13.6% YoY.
• Net profit margins during the year declined from 6.9% in FY21 to 4.4% in FY22.

KANPUR PLASTIPACK Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,374	5,983	36.8%
Other income	Rs m	75	127	68.6%
Total Revenues	Rs m	4,449	6,110	37.3%
Gross profit	Rs m	549	492	-10.5%
Depreciation	Rs m	92	106	15.5%
Interest	Rs m	92	142	54.3%
Profit before tax	Rs m	441	371	-16.0%
Tax	Rs m	138	109	-21.2%
Profit after tax	Rs m	303	262	-13.6%
Gross profit margin	%	12.6	8.2
Effective tax rate	%	31.3	29.3
Net profit margin	%	6.9	4.4

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KANPUR PLASTIPACK Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 4.7%.
• Long-term debt stood at Rs 685 million as compared to Rs 581 million during FY21, a growth of 17.8%.
• Current assets rose 7% and stood at Rs 2 billion, while fixed assets rose 16% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 12%.

KANPUR PLASTIPACK Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,575	1,790	13.7
Current Liabilities	Rs m	1,399	1,465	4.7
Long-term Debt	Rs m	581	685	17.8
Total Liabilities	Rs m	3,765	4,204	11.7
Current assets	Rs m	1,774	1,895	6.8
Fixed Assets	Rs m	1,991	2,308	16.0
Total Assets	Rs m	3,765	4,204	11.7

KANPUR PLASTIPACK Cash Flow Statement Analysis

• KANPUR PLASTIPACK's cash flow from operating activities (CFO) during FY22 stood at Rs 289 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -384 million, an improvement of 13.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 61 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -34 million from the Rs 37 million net cash flows seen during FY21.

KANPUR PLASTIPACK 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	-36	289	-
Cash Flow from Investing Activities	Rs m	-340	-384	-
Cash Flow from Financing Activities	Rs m	413	61	-85.2%
Net Cash Flow	Rs m	37	-34	-

Current Valuations for KANPUR PLASTIPACK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an decline from the EPS of Rs 21.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.9, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	305.7	278.7
TTM Earnings per share	Rs	21.2	12.2
Diluted earnings per share	Rs	14.1	12.2
Price to Cash Flow	x	7.9	12.1
TTM P/E ratio	x	10.2	11.5
Price / Book Value ratio	x	1.0	2.5
Market Cap	Rs m	1,593	4,454
Dividends per share (Unadj.)	Rs	1.8	2.2

Ratio Analysis for KANPUR PLASTIPACK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x 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 3.6x during FY22, from 5.8x 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 declined and down at 14.6% during FY22, from 19.2% 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 20.7% during FY22, from 24.7% 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 9.6% during FY22, from 10.5% 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	1.3	1.3
Debtors’ Days	Days	463	373
Interest coverage	x	5.8	3.6
Debt to equity ratio	x	0.4	0.4
Return on assets	%	10.5	9.6
Return on equity	%	19.2	14.6
Return on capital employed	%	24.7	20.7

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

KANPUR PLASTIPACK Share Price Performance

Over the last one year, KANPUR PLASTIPACK share price has moved down from Rs 169.0 to Rs 112.9, registering a loss of Rs 56.1 or around 33.2%.

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

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