NAHAR POLY FILMS 2021-22 Annual Report Analysis

Tue, 20 Sep

NAHAR POLY FILMS 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.

NAHAR POLY FILMS Income Statement Analysis

• Operating income during the year rose 61.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 81.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.4% in FY22 as against 21.6% in FY21.
• Depreciation charges increased by 244.1% and finance costs increased by 768.1% YoY, respectively.
• Other income declined by 8.1% YoY.
• Net profit for the year grew by 67.7% YoY.
• Net profit margins during the year grew from 16.8% in FY21 to 17.5% in FY22.

NAHAR POLY FILMS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,035	4,889	61.1%
Other income	Rs m	48	44	-8.1%
Total Revenues	Rs m	3,083	4,934	60.0%
Gross profit	Rs m	656	1,193	81.9%
Depreciation	Rs m	19	64	244.1%
Interest	Rs m	3	29	768.1%
Profit before tax	Rs m	682	1,144	67.7%
Tax	Rs m	171	287	67.7%
Profit after tax	Rs m	511	857	67.7%
Gross profit margin	%	21.6	24.4
Effective tax rate	%	25.1	25.1
Net profit margin	%	16.8	17.5

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NAHAR POLY FILMS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 538 million as compared to Rs 850 million in FY21, thereby witnessing an decrease of -36.7%.
• Long-term debt stood at Rs 1 billion as compared to Rs 428 million during FY21, a growth of 239.4%.
• Current assets rose 57% and stood at Rs 1 billion, while fixed assets rose 78% and stood at Rs 10 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 75%.

NAHAR POLY FILMS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,252	9,128	73.8
Current Liabilities	Rs m	850	538	-36.7
Long-term Debt	Rs m	428	1,453	239.4
Total Liabilities	Rs m	6,526	11,441	75.3
Current assets	Rs m	842	1,318	56.5
Fixed Assets	Rs m	5,684	10,123	78.1
Total Assets	Rs m	6,526	11,441	75.3

NAHAR POLY FILMS Cash Flow Statement Analysis

• NAHAR POLY FILMS's cash flow from operating activities (CFO) during FY22 stood at Rs -237 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -919 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 173% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 million from the Rs 7 million net cash flows seen during FY21.

NAHAR POLY FILMS 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	942	-237	-
Cash Flow from Investing Activities	Rs m	-1,357	-919	-
Cash Flow from Financing Activities	Rs m	422	1,153	173.2%
Net Cash Flow	Rs m	7	-3	-

Current Valuations for NAHAR POLY FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.9, an improvement from the EPS of Rs 20.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 353.8, stands at 9.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	123.4	198.8
TTM Earnings per share	Rs	20.8	34.9
Diluted earnings per share	Rs	20.8	34.9
Price to Cash Flow	x	5.1	9.4
TTM P/E ratio	x	5.3	9.2
Price / Book Value ratio	x	0.4	0.9
Market Cap	Rs m	2,059	8,630
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for NAHAR POLY FILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY22, from 1.0x 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 39.9x during FY22, from 202.2x 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 9.4% during FY22, from 9.7% 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 11.1% during FY22, from 12.1% 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 declined and down at 7.7% 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	1.0	2.4
Debtors’ Days	Days	136	212
Interest coverage	x	202.2	39.9
Debt to equity ratio	x	0.1	0.2
Return on assets	%	7.9	7.7
Return on equity	%	9.7	9.4
Return on capital employed	%	12.1	11.1

To see how NAHAR POLY FILMS has performed over the last 5 years, please visit here.

NAHAR POLY FILMS Share Price Performance

Over the last one year, NAHAR POLY FILMS share price has moved up from Rs 224.4 to Rs 353.8, registering a gain of Rs 129.5 or around 57.7%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for NAHAR POLY FILMS and quarterly results for NAHAR POLY FILMS)

Read: Latest Annual Report Analysis of NAHAR POLY FILMS