LAKSHMI MILLS 2021-22 Annual Report Analysis

Mon, 5 Sep

LAKSHMI MILLS 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.

LAKSHMI MILLS Income Statement Analysis

• Operating income during the year rose 88.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 113.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.2% in FY22 as against 12.5% in FY21.
• Depreciation charges increased by 17.3% and finance costs decreased by 6.2% YoY, respectively.
• Other income grew by 32.3% YoY.
• Net profit for the year grew by 555.7% YoY.
• Net profit margins during the year grew from 2.0% in FY21 to 6.9% in FY22.

LAKSHMI MILLS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,839	3,467	88.5%
Other income	Rs m	20	26	32.3%
Total Revenues	Rs m	1,859	3,493	87.9%
Gross profit	Rs m	230	492	113.9%
Depreciation	Rs m	61	72	17.3%
Interest	Rs m	124	116	-6.2%
Profit before tax	Rs m	64	329	412.5%
Tax	Rs m	28	89	221.7%
Profit after tax	Rs m	37	241	555.7%
Gross profit margin	%	12.5	14.2
Effective tax rate	%	42.9	26.9
Net profit margin	%	2.0	6.9

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LAKSHMI MILLS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 967 million as compared to Rs 815 million in FY21, thereby witnessing an increase of 18.7%.
• Long-term debt down at Rs 194 million as compared to Rs 222 million during FY21, a fall of 12.7%.
• Current assets rose 51% and stood at Rs 932 million, while fixed assets rose 31% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 6 billion during FY21, thereby witnessing a growth of 33%.

LAKSHMI MILLS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,767	6,313	32.4
Current Liabilities	Rs m	815	967	18.7
Long-term Debt	Rs m	222	194	-12.7
Total Liabilities	Rs m	5,823	7,767	33.4
Current assets	Rs m	618	932	50.8
Fixed Assets	Rs m	5,206	6,835	31.3
Total Assets	Rs m	5,823	7,767	33.4

LAKSHMI MILLS Cash Flow Statement Analysis

• LAKSHMI MILLS's cash flow from operating activities (CFO) during FY22 stood at Rs 278 million, an improvement of 243.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -137 million, an improvement of 216.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -142 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -2 million net cash flows seen during FY21.

LAKSHMI MILLS 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	81	278	243.1%
Cash Flow from Investing Activities	Rs m	-43	-137	-
Cash Flow from Financing Activities	Rs m	-40	-142	-
Net Cash Flow	Rs m	-2	0	-

Current Valuations for LAKSHMI MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 343.8, an improvement from the EPS of Rs 52.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,470.0, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	2,627.2	4,953.1
TTM Earnings per share	Rs	52.4	343.8
Diluted earnings per share	Rs	52.8	345.9
Price to Cash Flow	x	16.5	8.5
TTM P/E ratio	x	43.9	12.3
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	1,443	2,647
Dividends per share (Unadj.)	Rs	15.0	25.0

Ratio Analysis for LAKSHMI MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.8x 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 3.8x during FY22, from 1.5x 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 3.8% during FY22, from 0.8% 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 6.8% during FY22, from 3.8% 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 improved and stood at 4.6% during FY22, from 2.8% 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	0.8	1.0
Debtors’ Days	Days	605	341
Interest coverage	x	1.5	3.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.8	4.6
Return on equity	%	0.8	3.8
Return on capital employed	%	3.8	6.8

To see how LAKSHMI MILLS has performed over the last 5 years, please visit here.

LAKSHMI MILLS Share Price Performance

Over the last one year, LAKSHMI MILLS share price has moved up from Rs 3,418.6 to Rs 4,470.0, registering a gain of Rs 1,051.5 or around 30.8%.

Overall, the S&P BSE SENSEX is up 3.4% over the year.

(To know more, check out historical annual results for LAKSHMI MILLS and quarterly results for LAKSHMI MILLS)

Read: Latest Annual Report Analysis of LAKSHMI MILLS