LLOYDS STEEL IND. 2021-22 Annual Report Analysis

Wed, 7 Sep

LLOYDS STEEL IND. 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.

LLOYDS STEEL IND. Income Statement Analysis

• Operating income during the year fell 28.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.4% in FY22 as against 14.3% in FY21.
• Depreciation charges decreased by 16.2% and finance costs increased by 32.7% YoY, respectively.
• Other income declined by 25.5% YoY.
• Net profit for the year grew by 1080.0% YoY.
• Net profit margins during the year grew from 0.7% in FY21 to 11.9% in FY22.

LLOYDS STEEL IND. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	701	501	-28.5%
Other income	Rs m	131	98	-25.5%
Total Revenues	Rs m	831	598	-28.0%
Gross profit	Rs m	-100	47	NA
Depreciation	Rs m	16	13	-16.2%
Interest	Rs m	8	10	32.7%
Profit before tax	Rs m	7	121	1,639.7%
Tax	Rs m	2	62	3,108.3%
Profit after tax	Rs m	5	59	1,080.0%
Gross profit margin	%	-14.3	9.4
Effective tax rate	%	27.6	50.9
Net profit margin	%	0.7	11.9

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LLOYDS STEEL IND. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 321 million as compared to Rs 300 million in FY21, thereby witnessing an increase of 6.8%.
• Long-term debt stood at Rs 189 million as compared to Rs 6 million during FY21, a growth of 3238.1%.
• Current assets rose 27% and stood at Rs 2 billion, while fixed assets rose 80% and stood at Rs 258 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 32%.

LLOYDS STEEL IND. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,134	1,194	5.2
Current Liabilities	Rs m	300	321	6.8
Long-term Debt	Rs m	6	189	3,238.1
Total Liabilities	Rs m	1,438	1,905	32.5
Current assets	Rs m	1,295	1,647	27.2
Fixed Assets	Rs m	143	258	80.3
Total Assets	Rs m	1,438	1,905	32.5

LLOYDS STEEL IND. Cash Flow Statement Analysis

• LLOYDS STEEL IND.'s cash flow from operating activities (CFO) during FY22 stood at Rs -171 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -119 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 361 million, an improvement of 11,672% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 71 million from the Rs 5 million net cash flows seen during FY21.

LLOYDS STEEL IND. 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	175	-171	-
Cash Flow from Investing Activities	Rs m	-168	-119	-
Cash Flow from Financing Activities	Rs m	-3	361	-
Net Cash Flow	Rs m	5	71	1,415.0%

Current Valuations for LLOYDS STEEL IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14.8, stands at 85.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.3 times, while the price to sales ratio stands at 26.6 times.
• The company's price to cash flow (P/CF) ratio stood at 185.1 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	0.8	0.6
TTM Earnings per share	Rs	0.0	0.1
Diluted earnings per share	Rs	0.0	0.1
Price to Cash Flow	x	53.2	185.1
TTM P/E ratio	x	223.0	85.9
Price / Book Value ratio	x	0.7	11.3
Market Cap	Rs m	836	13,480
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for LLOYDS STEEL IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.1x during FY22, from 4.3x 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 improved and stood at 12.9x during FY22, from 1.9x 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 5.0% during FY22, from 0.4% 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 9.5% during FY22, from 1.3% 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 3.7% during FY22, from 0.9% 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	4.3	5.1
Debtors’ Days	Days	460	716
Interest coverage	x	1.9	12.9
Debt to equity ratio	x	0.0	0.2
Return on assets	%	0.9	3.7
Return on equity	%	0.4	5.0
Return on capital employed	%	1.3	9.5

To see how LLOYDS STEEL IND. has performed over the last 5 years, please visit here.

LLOYDS STEEL IND. Share Price Performance

Over the last one year, LLOYDS STEEL IND. share price has moved up from Rs 3.0 to Rs 14.8, registering a gain of Rs 11.8 or around 396.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 33,224.3 (up 0.1%). Over the last one year it has moved up from 25,492.4 to 33,224.3, a gain of 7,732 points (up 30.3%).

Overall, the S&P BSE SENSEX is up 1.3% over the year.

(To know more, check out historical annual results for LLOYDS STEEL IND. and quarterly results for LLOYDS STEEL IND.)

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