PHILLIPS CARBON BLACK 2021-22 Annual Report Analysis

Wed, 8 Jun

PHILLIPS CARBON BLACK 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.

PHILLIPS CARBON BLACK Income Statement Analysis

• Operating income during the year rose 67.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY22 as against 19.0% in FY21.
• Depreciation charges increased by 9.8% and finance costs decreased by 14.1% YoY, respectively.
• Other income grew by 102.9% YoY.
• Net profit for the year grew by 35.8% YoY.
• Net profit margins during the year declined from 11.8% in FY21 to 9.6% in FY22.

PHILLIPS CARBON BLACK Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	26,595	44,464	67.2%
Other income	Rs m	297	602	102.9%
Total Revenues	Rs m	26,892	45,066	67.6%
Gross profit	Rs m	5,064	6,214	22.7%
Depreciation	Rs m	1,101	1,209	9.8%
Interest	Rs m	339	291	-14.1%
Profit before tax	Rs m	3,920	5,316	35.6%
Tax	Rs m	781	1,052	34.8%
Profit after tax	Rs m	3,140	4,263	35.8%
Gross profit margin	%	19.0	14.0
Effective tax rate	%	19.9	19.8
Net profit margin	%	11.8	9.6

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PHILLIPS CARBON BLACK Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 22 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 97.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 27.7%.
• Current assets rose 95% and stood at Rs 29 billion, while fixed assets rose 33% and stood at Rs 30 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 59 billion as against Rs 37 billion during FY21, thereby witnessing a growth of 57%.

PHILLIPS CARBON BLACK Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,355	26,140	35.1
Current Liabilities	Rs m	10,985	21,684	97.4
Long-term Debt	Rs m	3,047	2,203	-27.7
Total Liabilities	Rs m	37,261	58,639	57.4
Current assets	Rs m	14,694	28,647	95.0
Fixed Assets	Rs m	22,567	29,992	32.9
Total Assets	Rs m	37,261	58,639	57.4

PHILLIPS CARBON BLACK Cash Flow Statement Analysis

• PHILLIPS CARBON BLACK's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 166.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 221% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -336 million from the Rs 28 million net cash flows seen during FY21.

PHILLIPS CARBON BLACK 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	3,850	2,904	-24.6%
Cash Flow from Investing Activities	Rs m	-2,027	-5,407	-
Cash Flow from Financing Activities	Rs m	-1,795	2,167	-
Net Cash Flow	Rs m	28	-336	-

Current Valuations for PHILLIPS CARBON BLACK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.6, an improvement from the EPS of Rs 18.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 105.0, stands at 9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	154.3	235.6
TTM Earnings per share	Rs	18.2	22.6
Diluted earnings per share	Rs	8.3	11.3
Price to Cash Flow	x	17.0	7.9
TTM P/E ratio	x	23.0	9.3
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	24,170	43,097
Dividends per share (Unadj.)	Rs	3.5	5.0

Ratio Analysis for PHILLIPS CARBON BLACK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.3x 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 improved and stood at 19.3x during FY22, from 12.6x 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 improved and stood at 16.3% during FY22, from 16.2% 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 improved and stood at 19.8% during FY22, from 19.0% 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 7.8% during FY22, from 9.3% 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	1.3	1.3
Debtors’ Days	Days	10	9
Interest coverage	x	12.6	19.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.3	7.8
Return on equity	%	16.2	16.3
Return on capital employed	%	19.0	19.8

To see how PHILLIPS CARBON BLACK has performed over the last 5 years, please visit here.

PHILLIPS CARBON BLACK Share Price Performance

Over the last one year, PHILLIPS CARBON BLACK share price has moved down from Rs 239.2 to Rs 105.0, registering a loss of Rs 134.2 or around 56.1%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for PHILLIPS CARBON BLACK and quarterly results for PHILLIPS CARBON BLACK)

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