OSWAL GREENTECH 2021-22 Annual Report Analysis

Mon, 26 Sep

OSWAL GREENTECH 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.

OSWAL GREENTECH Income Statement Analysis

• Operating income during the year rose 23.9% 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 stood at 65.7% in FY22 as against 54.1% in FY21.
• Depreciation charges decreased by 3.4% and finance costs increased by 18.5% YoY, respectively.
• Other income declined by 14.3% YoY.
• Net profit for the year declined by 7.9% YoY.
• Net profit margins during the year declined from 258.0% in FY21 to 191.8% in FY22.

OSWAL GREENTECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	194	240	23.9%
Other income	Rs m	954	817	-14.3%
Total Revenues	Rs m	1,148	1,057	-7.9%
Gross profit	Rs m	-105	-158	NA
Depreciation	Rs m	37	36	-3.4%
Interest	Rs m	10	12	18.5%
Profit before tax	Rs m	802	612	-23.7%
Tax	Rs m	302	151	-49.9%
Profit after tax	Rs m	500	461	-7.9%
Gross profit margin	%	-54.1	-65.7
Effective tax rate	%	37.6	24.7
Net profit margin	%	258.0	191.8

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OSWAL GREENTECH Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 377 million as compared to Rs 474 million in FY21, thereby witnessing an decrease of -20.5%.
• Current assets fell 47% and stood at Rs 6 billion, while fixed assets rose 37% and stood at Rs 20 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 25 billion during FY21, thereby witnessing a growth of 2%.

OSWAL GREENTECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	24,369	24,835	1.9
Current Liabilities	Rs m	474	377	-20.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	24,711	25,101	1.6
Current assets	Rs m	10,487	5,592	-46.7
Fixed Assets	Rs m	14,224	19,509	37.2
Total Assets	Rs m	24,711	25,101	1.6

OSWAL GREENTECH Cash Flow Statement Analysis

• OSWAL GREENTECH's cash flow from operating activities (CFO) during FY22 stood at Rs -573 million, an improvement of 24.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 542 million, an improvement of 9.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 10 million, an improvement of 133% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -21 million from the Rs 9 million net cash flows seen during FY21.

OSWAL GREENTECH 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	-459	-573	-
Cash Flow from Investing Activities	Rs m	497	542	9.1%
Cash Flow from Financing Activities	Rs m	-29	10	-
Net Cash Flow	Rs m	9	-21	-

Current Valuations for OSWAL GREENTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.8, stands at 13.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 27.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 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	0.8	0.9
TTM Earnings per share	Rs	1.9	1.8
Diluted earnings per share	Rs	1.9	1.8
Price to Cash Flow	x	8.6	13.5
TTM P/E ratio	x	9.2	13.8
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	4,100	6,677
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for OSWAL GREENTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 14.8x during FY22, from 22.1x 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 53.7x during FY22, from 82.8x 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 declined and down at 1.9% during FY22, from 2.1% 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 2.5% during FY22, from 3.3% 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 1.9% during FY22, from 2.1% 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	22.1	14.8
Debtors’ Days	Days	0	0
Interest coverage	x	82.8	53.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.1	1.9
Return on equity	%	2.1	1.9
Return on capital employed	%	3.3	2.5

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

OSWAL GREENTECH Share Price Performance

Over the last one year, OSWAL GREENTECH share price has moved up from Rs 23.6 to Rs 25.8, registering a gain of Rs 2.2 or around 9.1%.

Overall, the S&P BSE SENSEX is down 2.9% over the year.

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

Read: Latest Annual Report Analysis of OSWAL GREENTECH