NYKAA 2021-22 Annual Report Analysis

Wed, 24 Aug

NYKAA 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.

NYKAA Income Statement Analysis

• Operating income during the year rose 54.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.3% in FY22 as against 6.5% in FY21.
• Depreciation charges increased by 34.7% and finance costs increased by 46.5% YoY, respectively.
• Other income grew by 149.2% YoY.
• Net profit for the year declined by 33.0% YoY.
• Net profit margins during the year declined from 2.5% in FY21 to 1.1% in FY22.

NYKAA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	24,409	37,739	54.6%
Other income	Rs m	118	293	149.2%
Total Revenues	Rs m	24,527	38,032	55.1%
Gross profit	Rs m	1,582	1,617	2.2%
Depreciation	Rs m	716	964	34.7%
Interest	Rs m	323	473	46.5%
Profit before tax	Rs m	661	473	-28.5%
Tax	Rs m	45	60	34.5%
Profit after tax	Rs m	616	413	-33.0%
Gross profit margin	%	6.5	4.3
Effective tax rate	%	6.8	12.7
Net profit margin	%	2.5	1.1

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NYKAA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 10 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 38.9%.
• Long-term debt down at Rs 9 million as compared to Rs 17 million during FY21, a fall of 44.5%.
• Current assets rose 100% and stood at Rs 19 billion, while fixed assets rose 131% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 107%.

NYKAA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,810	13,242	175.3
Current Liabilities	Rs m	6,948	9,653	38.9
Long-term Debt	Rs m	17	9	-44.5
Total Liabilities	Rs m	12,239	25,308	106.8
Current assets	Rs m	9,630	19,271	100.1
Fixed Assets	Rs m	2,609	6,038	131.4
Total Assets	Rs m	12,239	25,308	106.8

NYKAA Cash Flow Statement Analysis

• NYKAA's cash flow from operating activities (CFO) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 billion, an improvement of 364.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 9 billion, an improvement of 2,558% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -297 million from the Rs -343 million net cash flows seen during FY21.

NYKAA 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	1,332	-3,540	-
Cash Flow from Investing Activities	Rs m	-1,297	-6,028	-
Cash Flow from Financing Activities	Rs m	-377	9,270	-
Net Cash Flow	Rs m	-343	-297	-

Current Valuations for NYKAA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 40.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,355.9, stands at 1,480.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 48.6 times, while the price to sales ratio stands at 17.0 times.
• The company's price to cash flow (P/CF) ratio stood at 652.9 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	1,620.8	79.6
TTM Earnings per share	Rs	40.9	0.9
Diluted earnings per share	Rs	1.3	0.9
Price to Cash Flow	x	0.0	652.9
TTM P/E ratio	x	0.0	1,480.0
Price / Book Value ratio	x	0.0	67.9
Market Cap	Rs m	0	899,093
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NYKAA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY22, from 1.4x 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 deteriorated and stood at 2.0x during FY22, from 3.0x 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 3.1% during FY22, from 12.8% 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 7.1% during FY22, from 20.4% 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 3.5% during FY22, from 7.7% 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	1.4	2.0
Debtors’ Days	Days	11	9
Interest coverage	x	3.0	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	3.5
Return on equity	%	12.8	3.1
Return on capital employed	%	20.4	7.1

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

NYKAA Share Price Performance

Over the last one year, NYKAA share price has moved up from Rs 0.0 to Rs 1,355.9, registering a gain of Rs 1,355.9 or around 0.0%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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

Read: Latest Annual Report Analysis of NYKAA