LACTOSE INDIA 2021-22 Annual Report Analysis

Thu, 9 Jun

LACTOSE INDIA 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.

LACTOSE INDIA Income Statement Analysis

• Operating income during the year rose 31.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 97.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.7% in FY22 as against 17.8% in FY21.
• Depreciation charges increased by 4.6% and finance costs decreased by 6.1% YoY, respectively.
• Other income grew by 85.6% YoY.
• Net profit for the year declined by 198.9% YoY.
• Net profit margins during the year grew from 7.1% in FY21 to 5.3% in FY22.

LACTOSE INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	350	459	31.4%
Other income	Rs m	3	6	85.6%
Total Revenues	Rs m	353	465	31.9%
Gross profit	Rs m	62	123	97.0%
Depreciation	Rs m	44	46	4.6%
Interest	Rs m	54	51	-6.1%
Profit before tax	Rs m	-33	32	-196.8%
Tax	Rs m	-8	7	-190.2%
Profit after tax	Rs m	-25	25	-198.9%
Gross profit margin	%	17.8	26.7
Effective tax rate	%	24.3	22.6
Net profit margin	%	-7.1	5.3

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LACTOSE INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 149 million as compared to Rs 116 million in FY21, thereby witnessing an increase of 28.3%.
• Long-term debt down at Rs 343 million as compared to Rs 393 million during FY21, a fall of 12.8%.
• Current assets rose 15% and stood at Rs 227 million, while fixed assets fell 2% and stood at Rs 675 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 902 million as against Rs 883 million during FY21, thereby witnessing a growth of 2%.

LACTOSE INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	345	393	13.9
Current Liabilities	Rs m	116	149	28.3
Long-term Debt	Rs m	393	343	-12.8
Total Liabilities	Rs m	883	902	2.1
Current assets	Rs m	197	227	15.5
Fixed Assets	Rs m	686	675	-1.7
Total Assets	Rs m	883	902	2.1

LACTOSE INDIA Cash Flow Statement Analysis

• LACTOSE INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 85 million, an improvement of 291.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -81 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 million from the Rs 5 million net cash flows seen during FY21.

LACTOSE INDIA 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	22	85	291.1%
Cash Flow from Investing Activities	Rs m	-62	-6	-
Cash Flow from Financing Activities	Rs m	45	-81	-
Net Cash Flow	Rs m	5	-2	-

Current Valuations for LACTOSE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.9, an improvement from the EPS of Rs -2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 87.5, stands at 44.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	30.6	36.5
TTM Earnings per share	Rs	-2.2	1.9
Diluted earnings per share	Rs	-2.0	1.9
Price to Cash Flow	x	17.9	7.8
TTM P/E ratio	x	-13.8	44.9
Price / Book Value ratio	x	1.0	1.4
Market Cap	Rs m	330	545
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LACTOSE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.7x 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 1.6x during FY22, from 0.4x 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 6.2% during FY22, from -7.2% 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 improved and stood at 11.3% during FY22, from 3.0% 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 8.4% during FY22, from 3.4% 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	1.7	1.5
Debtors’ Days	Days	671	902
Interest coverage	x	0.4	1.6
Debt to equity ratio	x	1.1	0.9
Return on assets	%	3.4	8.4
Return on equity	%	-7.2	6.2
Return on capital employed	%	3.0	11.3

To see how LACTOSE INDIA has performed over the last 5 years, please visit here.

LACTOSE INDIA Share Price Performance

Over the last one year, LACTOSE INDIA share price has moved up from Rs 30.6 to Rs 87.5, registering a gain of Rs 56.9 or around 185.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,916.5 (up 0.2%). Over the last one year it has moved down from 24,897.3 to 21,916.5, a loss of 2,981 points (down 12.0%).

Overall, the S&P BSE SENSEX is up 4.5% over the year.

(To know more, check out historical annual results for LACTOSE INDIA and quarterly results for LACTOSE INDIA)

Read: Latest Annual Report Analysis of LACTOSE INDIA