NAGARJUNA FERTILIZERS & CHEM. 2021-22 Annual Report Analysis

Tue, 15 Nov

NAGARJUNA FERTILIZERS & CHEM. 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.

NAGARJUNA FERTILIZERS & CHEM. Income Statement Analysis

• Operating income during the year rose 71.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 11.1% in FY22 as against 15.8% in FY21.
• Depreciation charges decreased by 0.2% and finance costs increased by 6.3% YoY, respectively.
• Other income grew by 21.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 39.1% in FY21 to 25.6% in FY22.

NAGARJUNA FERTILIZERS & CHEM. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	15,749	26,923	71.0%
Other income	Rs m	251	303	21.0%
Total Revenues	Rs m	16,000	27,227	70.2%
Gross profit	Rs m	-2,481	-2,984	NA
Depreciation	Rs m	822	821	-0.2%
Interest	Rs m	3,478	3,696	6.3%
Profit before tax	Rs m	-6,531	-7,198	NA
Tax	Rs m	-378	-307	NA
Profit after tax	Rs m	-6,153	-6,890	NA
Gross profit margin	%	-15.8	-11.1
Effective tax rate	%	5.8	4.3
Net profit margin	%	-39.1	-25.6

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NAGARJUNA FERTILIZERS & CHEM. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 36 billion as compared to Rs 28 billion in FY21, thereby witnessing an increase of 28.8%.
• Long-term debt down at Rs 218 million as compared to Rs 279 million during FY21, a fall of 21.7%.
• Current assets rose 37% and stood at Rs 6 billion, while fixed assets fell 5% and stood at Rs 21 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 27 billion during FY21, thereby witnessing a growth of 3%.

NAGARJUNA FERTILIZERS & CHEM. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-4,843	-11,725	NA
Current Liabilities	Rs m	27,857	35,887	28.8
Long-term Debt	Rs m	279	218	-21.7
Total Liabilities	Rs m	26,884	27,571	2.6
Current assets	Rs m	4,708	6,459	37.2
Fixed Assets	Rs m	22,177	21,112	-4.8
Total Assets	Rs m	26,884	27,571	2.6

NAGARJUNA FERTILIZERS & CHEM. Cash Flow Statement Analysis

• NAGARJUNA FERTILIZERS & CHEM.'s cash flow from operating activities (CFO) during FY22 stood at Rs 649 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 193 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -991 million from the Rs 311 million net cash flows seen during FY21.

NAGARJUNA FERTILIZERS & CHEM. 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	1,241	649	-47.7%
Cash Flow from Investing Activities	Rs m	456	193	-57.7%
Cash Flow from Financing Activities	Rs m	-1,386	-1,832	-
Net Cash Flow	Rs m	311	-991	-

Current Valuations for NAGARJUNA FERTILIZERS & CHEM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.5, an decline from the EPS of Rs -10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.3, stands at -0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -1.3 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	26.3	45.0
TTM Earnings per share	Rs	-10.3	-11.5
Diluted earnings per share	Rs	-10.3	-11.5
Price to Cash Flow	x	-0.7	-1.3
TTM P/E ratio	x	-0.6	-0.8
Price / Book Value ratio	x	-0.7	-0.7
Market Cap	Rs m	3,310	7,691
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAGARJUNA FERTILIZERS & CHEM.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY22, from 0.2x 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 deteriorated and stood at -0.9x during FY22, from -0.9x 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 declined and down at 58.8% during FY22, from 127.0% 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 30.4% during FY22, from 66.9% 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 -11.6% during FY22, from -10.0% 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	0.2	0.2
Debtors’ Days	Days	461	657
Interest coverage	x	-0.9	-0.9
Debt to equity ratio	x	-0.1	0.0
Return on assets	%	-10.0	-11.6
Return on equity	%	127.0	58.8
Return on capital employed	%	66.9	30.4

To see how NAGARJUNA FERTILIZERS & CHEM. has performed over the last 5 years, please visit here.

NAGARJUNA FERTILIZERS & CHEM. Share Price Performance

Over the last one year, NAGARJUNA FERTILIZERS & CHEM. share price has moved down from Rs 9.0 to Rs 8.3, registering a loss of Rs 0.6 or around 7.2%.

Overall, the S&P BSE SENSEX is up 2.8% over the year.

(To know more, check out historical annual results for NAGARJUNA FERTILIZERS & CHEM. and quarterly results for NAGARJUNA FERTILIZERS & CHEM.)

Read: Latest Annual Report Analysis of NAGARJUNA FERTILIZERS & CHEM.