CERA SANITARY 2021-22 Annual Report Analysis

Wed, 8 Jun

CERA SANITARY 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.

CERA SANITARY Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.4% in FY22 as against 12.9% in FY21.
• Depreciation charges decreased by 18.1% and finance costs decreased by 45.7% YoY, respectively.
• Other income declined by 6.0% YoY.
• Net profit for the year grew by 53.1% YoY.
• Net profit margins during the year grew from 8.2% in FY21 to 10.6% in FY22.

CERA SANITARY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,243	14,458	18.1%
Other income	Rs m	252	236	-6.0%
Total Revenues	Rs m	12,495	14,695	17.6%
Gross profit	Rs m	1,581	2,230	41.1%
Depreciation	Rs m	396	324	-18.1%
Interest	Rs m	97	53	-45.7%
Profit before tax	Rs m	1,339	2,090	56.0%
Tax	Rs m	340	560	64.7%
Profit after tax	Rs m	999	1,529	53.1%
Gross profit margin	%	12.9	15.4
Effective tax rate	%	25.4	26.8
Net profit margin	%	8.2	10.6

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CERA SANITARY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 1.4%.
• Long-term debt stood at Rs 611 million as compared to Rs 426 million during FY21, a growth of 43.3%.
• Current assets rose 21% and stood at Rs 11 billion, while fixed assets fell 3% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 14 billion during FY21, thereby witnessing a growth of 12%.

CERA SANITARY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,717	10,152	16.5
Current Liabilities	Rs m	3,725	3,776	1.4
Long-term Debt	Rs m	426	611	43.3
Total Liabilities	Rs m	13,777	15,494	12.5
Current assets	Rs m	9,000	10,861	20.7
Fixed Assets	Rs m	4,777	4,632	-3.0
Total Assets	Rs m	13,777	15,494	12.5

CERA SANITARY Cash Flow Statement Analysis

• CERA SANITARY's cash flow from operating activities (CFO) during FY22 stood at Rs 980 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -815 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -100 million, an improvement of 47% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 65 million from the Rs 68 million net cash flows seen during FY21.

CERA SANITARY 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	2,680	980	-63.4%
Cash Flow from Investing Activities	Rs m	-2,423	-815	-
Cash Flow from Financing Activities	Rs m	-188	-100	-
Net Cash Flow	Rs m	68	65	-5.6%

Current Valuations for CERA SANITARY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 117.6, an improvement from the EPS of Rs 76.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,099.8, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 35.4 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	941.1	1,111.3
TTM Earnings per share	Rs	76.8	117.6
Diluted earnings per share	Rs	76.8	117.6
Price to Cash Flow	x	36.4	35.4
TTM P/E ratio	x	50.8	34.9
Price / Book Value ratio	x	4.7	6.5
Market Cap	Rs m	40,653	65,553
Dividends per share (Unadj.)	Rs	13.0	35.0

Ratio Analysis for CERA SANITARY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY22, from 2.4x 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 40.6x during FY22, from 14.8x 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 15.1% during FY22, from 11.5% 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 19.9% during FY22, from 15.7% 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 improved and stood at 10.2% during FY22, from 8.0% 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	2.4	2.9
Debtors’ Days	Days	624	421
Interest coverage	x	14.8	40.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.0	10.2
Return on equity	%	11.5	15.1
Return on capital employed	%	15.7	19.9

To see how CERA SANITARY has performed over the last 5 years, please visit here.

CERA SANITARY Share Price Performance

Over the last one year, CERA SANITARY share price has moved down from Rs 4,497.3 to Rs 4,099.8, registering a loss of Rs 397.5 or around 8.8%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for CERA SANITARY and quarterly results for CERA SANITARY)

Read: Latest Annual Report Analysis of CERA SANITARY