NGL FINE CHM 2021-22 Annual Report Analysis

Mon, 20 Jun

NGL FINE CHM 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.

NGL FINE CHM Income Statement Analysis

• Operating income during the year rose 23.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY22 as against 31.1% in FY21.
• Depreciation charges increased by 24.4% and finance costs decreased by 13.2% YoY, respectively.
• Other income grew by 33.2% YoY.
• Net profit for the year declined by 12.0% YoY.
• Net profit margins during the year declined from 22.0% in FY21 to 15.7% in FY22.

NGL FINE CHM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,580	3,175	23.1%
Other income	Rs m	80	107	33.2%
Total Revenues	Rs m	2,660	3,282	23.4%
Gross profit	Rs m	801	682	-14.9%
Depreciation	Rs m	83	104	24.4%
Interest	Rs m	22	19	-13.2%
Profit before tax	Rs m	776	666	-14.2%
Tax	Rs m	209	167	-20.0%
Profit after tax	Rs m	567	499	-12.0%
Gross profit margin	%	31.1	21.5
Effective tax rate	%	26.9	25.1
Net profit margin	%	22.0	15.7

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NGL FINE CHM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 657 million as compared to Rs 418 million in FY21, thereby witnessing an increase of 57.2%.
• Long-term debt down at Rs 34 million as compared to Rs 61 million during FY21, a fall of 44.0%.
• Current assets rose 39% and stood at Rs 2 billion, while fixed assets rose 25% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 34%.

NGL FINE CHM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,545	2,032	31.6
Current Liabilities	Rs m	418	657	57.2
Long-term Debt	Rs m	61	34	-44.0
Total Liabilities	Rs m	2,074	2,769	33.5
Current assets	Rs m	1,245	1,735	39.3
Fixed Assets	Rs m	829	1,034	24.8
Total Assets	Rs m	2,074	2,769	33.5

NGL FINE CHM Cash Flow Statement Analysis

• NGL FINE CHM's cash flow from operating activities (CFO) during FY22 stood at Rs 138 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -142 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -11 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -15 million from the Rs 17 million net cash flows seen during FY21.

NGL FINE CHM 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	274	138	-49.5%
Cash Flow from Investing Activities	Rs m	-246	-142	-
Cash Flow from Financing Activities	Rs m	-11	-11	-
Net Cash Flow	Rs m	17	-15	-

Current Valuations for NGL FINE CHM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 80.7, an decline from the EPS of Rs 91.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,627.3, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 27.1 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	417.4	513.8
TTM Earnings per share	Rs	91.8	80.7
Diluted earnings per share	Rs	91.8	80.8
Price to Cash Flow	x	14.6	27.1
TTM P/E ratio	x	16.7	20.2
Price / Book Value ratio	x	4.1	8.0
Market Cap	Rs m	6,301	16,342
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for NGL FINE CHM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY22, from 3.0x 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 35.8x during FY22, from 36.2x 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 24.6% during FY22, from 36.7% 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 33.2% during FY22, from 49.7% 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 18.7% during FY22, from 28.4% 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	3.0	2.6
Debtors’ Days	Days	531	735
Interest coverage	x	36.2	35.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.4	18.7
Return on equity	%	36.7	24.6
Return on capital employed	%	49.7	33.2

To see how NGL FINE CHM has performed over the last 5 years, please visit here.

NGL FINE CHM Share Price Performance

Over the last one year, NGL FINE CHM share price has moved down from Rs 2,112.6 to Rs 1,627.3, registering a loss of Rs 485.4 or around 23.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,043.0 (up 0.2%). Over the last one year it has moved down from 24,765.0 to 21,043.0, a loss of 3,722 points (down 15.0%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

(To know more, check out historical annual results for NGL FINE CHM and quarterly results for NGL FINE CHM)

Read: Latest Annual Report Analysis of NGL FINE CHM