LUX INDUSTRIES 2021-22 Annual Report Analysis

Tue, 6 Sep

LUX INDUSTRIES 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.

LUX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.6% in FY22 as against 19.5% in FY21.
• Depreciation charges increased by 2.7% and finance costs increased by 25.9% YoY, respectively.
• Other income grew by 38.2% YoY.
• Net profit for the year grew by 25.5% YoY.
• Net profit margins during the year grew from 13.8% in FY21 to 14.7% in FY22.

LUX INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,525	22,959	17.6%
Other income	Rs m	123	171	38.2%
Total Revenues	Rs m	19,649	23,129	17.7%
Gross profit	Rs m	3,804	4,732	24.4%
Depreciation	Rs m	179	183	2.7%
Interest	Rs m	127	160	25.9%
Profit before tax	Rs m	3,621	4,559	25.9%
Tax	Rs m	927	1,179	27.1%
Profit after tax	Rs m	2,694	3,381	25.5%
Gross profit margin	%	19.5	20.6
Effective tax rate	%	25.6	25.9
Net profit margin	%	13.8	14.7

Special Anniversary Offer: Vanishing Tomorrow - Your Chance to Save 80%

LUX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 7 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 46.3%.
• Long-term debt stood at Rs 172 million as compared to Rs 155 million during FY21, a growth of 11.1%.
• Current assets rose 35% and stood at Rs 17 billion, while fixed assets rose 34% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 15 billion during FY21, thereby witnessing a growth of 35%.

LUX INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	10,056	13,097	30.2
Current Liabilities	Rs m	4,539	6,638	46.3
Long-term Debt	Rs m	155	172	11.1
Total Liabilities	Rs m	14,917	20,122	34.9
Current assets	Rs m	12,754	17,215	35.0
Fixed Assets	Rs m	2,163	2,907	34.4
Total Assets	Rs m	14,917	20,122	34.9

LUX INDUSTRIES Cash Flow Statement Analysis

• LUX INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 438 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 214% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -322 million from the Rs 786 million net cash flows seen during FY21.

LUX INDUSTRIES 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	3,885	-2,285	-
Cash Flow from Investing Activities	Rs m	-1,765	438	-
Cash Flow from Financing Activities	Rs m	-1,334	1,524	-
Net Cash Flow	Rs m	786	-322	-

Current Valuations for LUX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 96.9, an improvement from the EPS of Rs 89.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,820.0, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 31.4 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	649.3	658.0
TTM Earnings per share	Rs	89.6	96.9
Diluted earnings per share	Rs	89.6	112.4
Price to Cash Flow	x	18.2	31.4
TTM P/E ratio	x	20.7	16.9
Price / Book Value ratio	x	4.1	8.5
Market Cap	Rs m	41,185	111,937
Dividends per share (Unadj.)	Rs	0.0	12.0

Ratio Analysis for LUX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY22, from 2.8x 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 29.5x during FY22, from 29.5x 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 declined and down at 25.8% during FY22, from 26.8% 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 declined and down at 35.6% during FY22, from 36.7% 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 17.6% during FY22, from 18.9% 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	2.8	2.6
Debtors’ Days	Days	9	10
Interest coverage	x	29.5	29.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.9	17.6
Return on equity	%	26.8	25.8
Return on capital employed	%	36.7	35.6

To see how LUX INDUSTRIES has performed over the last 5 years, please visit here.

LUX INDUSTRIES Share Price Performance

Over the last one year, LUX INDUSTRIES share price has moved down from Rs 4,069.4 to Rs 1,820.0, registering a loss of Rs 2,249.4 or around 55.3%.

Overall, the S&P BSE SENSEX is up 2.3% over the year.

(To know more, check out historical annual results for LUX INDUSTRIES and quarterly results for LUX INDUSTRIES)

Read: Latest Annual Report Analysis of LUX INDUSTRIES