LAXMI ORGANIC INDUSTRIES 2021-22 Annual Report Analysis

Tue, 12 Jul

LAXMI ORGANIC 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.

LAXMI ORGANIC INDUSTRIES Income Statement Analysis

• Operating income during the year rose 74.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY22 as against 12.4% in FY21.
• Depreciation charges increased by 5.9% and finance costs decreased by 0.6% YoY, respectively.
• Other income grew by 222.5% YoY.
• Net profit for the year grew by 101.8% YoY.
• Net profit margins during the year grew from 7.2% in FY21 to 8.3% in FY22.

LAXMI ORGANIC INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	17,684	30,842	74.4%
Other income	Rs m	46	149	222.5%
Total Revenues	Rs m	17,731	30,991	74.8%
Gross profit	Rs m	2,193	3,712	69.2%
Depreciation	Rs m	465	493	5.9%
Interest	Rs m	190	189	-0.6%
Profit before tax	Rs m	1,584	3,179	100.7%
Tax	Rs m	313	614	96.0%
Profit after tax	Rs m	1,271	2,565	101.8%
Gross profit margin	%	12.4	12.0
Effective tax rate	%	19.8	19.3
Net profit margin	%	7.2	8.3

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LAXMI ORGANIC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 21.4%.
• Long-term debt down at Rs 22 million as compared to Rs 99 million during FY21, a fall of 78.0%.
• Current assets rose 13% and stood at Rs 15 billion, while fixed assets rose 49% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 23 billion as against Rs 18 billion during FY21, thereby witnessing a growth of 23%.

LAXMI ORGANIC INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	10,300	12,729	23.6
Current Liabilities	Rs m	7,678	9,323	21.4
Long-term Debt	Rs m	99	22	-78.0
Total Liabilities	Rs m	18,376	22,651	23.3
Current assets	Rs m	13,051	14,728	12.9
Fixed Assets	Rs m	5,325	7,923	48.8
Total Assets	Rs m	18,376	22,651	23.3

LAXMI ORGANIC INDUSTRIES Cash Flow Statement Analysis

• LAXMI ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 457 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 738 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 164 million from the Rs -75 million net cash flows seen during FY21.

LAXMI ORGANIC 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	1,062	457	-57.0%
Cash Flow from Investing Activities	Rs m	-6,410	738	-
Cash Flow from Financing Activities	Rs m	5,274	-1,242	-
Net Cash Flow	Rs m	-75	164	-

Current Valuations for LAXMI ORGANIC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 285.0, stands at 29.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 34.5 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	67.1	117.0
TTM Earnings per share	Rs	4.8	9.7
Diluted earnings per share	Rs	4.8	9.7
Price to Cash Flow	x	26.6	34.5
TTM P/E ratio	x	36.4	29.5
Price / Book Value ratio	x	4.3	8.3
Market Cap	Rs m	44,473	105,406
Dividends per share (Unadj.)	Rs	0.5	0.7

Ratio Analysis for LAXMI ORGANIC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x 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 17.8x during FY22, from 9.3x 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 20.1% during FY22, from 12.3% 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 26.4% during FY22, from 17.1% 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 12.2% during FY22, from 7.9% 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	1.7	1.6
Debtors’ Days	Days	90	79
Interest coverage	x	9.3	17.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	12.2
Return on equity	%	12.3	20.1
Return on capital employed	%	17.1	26.4

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

LAXMI ORGANIC INDUSTRIES Share Price Performance

Over the last one year, LAXMI ORGANIC INDUSTRIES share price has moved up from Rs 267.7 to Rs 285.0, registering a gain of Rs 17.3 or around 6.5%.

Overall, the S&P BSE SENSEX is up 2.5% over the year.

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

Read: Latest Annual Report Analysis of LAXMI ORGANIC INDUSTRIES