PIDILITE INDUSTRIES 2021-22 Annual Report Analysis

Sun, 17 Jul

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 14.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY22 as against 23.0% in FY21.
• Depreciation charges decreased by 12.7% and finance costs decreased by 29.0% YoY, respectively.
• Other income grew by 190.1% YoY.
• Net profit for the year grew by 13.1% YoY.
• Net profit margins during the year declined from 15.4% in FY21 to 15.2% in FY22.

PIDILITE INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	72,927	83,402	14.4%
Other income	Rs m	794	2,304	190.1%
Total Revenues	Rs m	73,721	85,705	16.3%
Gross profit	Rs m	16,770	15,987	-4.7%
Depreciation	Rs m	2,007	1,751	-12.7%
Interest	Rs m	372	264	-29.0%
Profit before tax	Rs m	15,185	16,275	7.2%
Tax	Rs m	3,964	3,589	-9.5%
Profit after tax	Rs m	11,222	12,686	13.1%
Gross profit margin	%	23.0	19.2
Effective tax rate	%	26.1	22.1
Net profit margin	%	15.4	15.2

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PIDILITE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 29 billion as compared to Rs 24 billion in FY21, thereby witnessing an increase of 17.1%.
• Current assets rose 15% and stood at Rs 40 billion, while fixed assets rose 22% and stood at Rs 65 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 105 billion as against Rs 88 billion during FY21, thereby witnessing a growth of 20%.

PIDILITE INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	55,675	63,839	14.7
Current Liabilities	Rs m	24,347	28,510	17.1
Long-term Debt	Rs m	124	0	-100.0
Total Liabilities	Rs m	88,138	105,380	19.6
Current assets	Rs m	35,154	40,481	15.2
Fixed Assets	Rs m	52,985	64,899	22.5
Total Assets	Rs m	88,138	105,380	19.6

PIDILITE INDUSTRIES Cash Flow Statement Analysis

• PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 67 million from the Rs -3 billion net cash flows seen during FY21.

PIDILITE INDUSTRIES 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	13,921	7,656	-45.0%
Cash Flow from Investing Activities	Rs m	-16,879	-3,262	-
Cash Flow from Financing Activities	Rs m	-762	-4,328	-
Net Cash Flow	Rs m	-2,792	67	-

Current Valuations for PIDILITE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.0, an improvement from the EPS of Rs 22.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,307.9, stands at 98.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.4 times, while the price to sales ratio stands at 14.1 times.
• The company's price to cash flow (P/CF) ratio stood at 79.6 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	143.5	164.1
TTM Earnings per share	Rs	22.1	25.0
Diluted earnings per share	Rs	22.1	25.0
Price to Cash Flow	x	69.5	79.6
TTM P/E ratio	x	82.0	98.2
Price / Book Value ratio	x	13.9	18.0
Market Cap	Rs m	774,172	1,148,783
Dividends per share (Unadj.)	Rs	8.5	10.0

Ratio Analysis for PIDILITE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 improved and stood at 62.6x during FY22, from 41.8x 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 19.9% during FY22, from 20.2% 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 declined and down at 25.9% during FY22, from 27.9% 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 12.3% during FY22, from 13.2% 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	1.4
Debtors’ Days	Days	7	5
Interest coverage	x	41.8	62.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.2	12.3
Return on equity	%	20.2	19.9
Return on capital employed	%	27.9	25.9

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

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 2,245.1 to Rs 2,307.9, registering a gain of Rs 62.8 or around 2.8%.

Overall, the S&P BSE SENSEX is up 1.6% over the year.

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

Read: Latest Annual Report Analysis of PIDILITE INDUSTRIES