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POLYLINK POL 2021-22 Annual Report Analysis
Tue, 14 Jun

POLYLINK POL 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.

POLYLINK POL Income Statement Analysis

  • Operating income during the year rose 22.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY22 as against 5.0% in FY21.
  • Depreciation charges increased by 8.1% and finance costs increased by 26.4% YoY, respectively.
  • Other income declined by 16.1% YoY.
  • Net profit for the year declined by 24.8% YoY.
  • Net profit margins during the year declined from 3.2% in FY21 to 2.0% in FY22.

POLYLINK POL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 374 457 22.1%
Other income Rs m 5 5 -16.1%
Total Revenues Rs m 380 461 21.5%
Gross profit Rs m 19 20 5.6%
Depreciation Rs m 8 9 8.1%
Interest Rs m 1 2 26.4%
Profit before tax Rs m 15 14 -5.4%
Tax Rs m 3 5 74.2%
Profit after tax Rs m 12 9 -24.8%
Gross profit margin % 5.0 4.4
Effective tax rate % 19.6 36.1
Net profit margin % 3.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

POLYLINK POL Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 47 million as compared to Rs 40 million in FY21, thereby witnessing an increase of 18.1%.
  • Long-term debt down at Rs 3 million as compared to Rs 4 million during FY21, a fall of 38.9%.
  • Current assets rose 15% and stood at Rs 145 million, while fixed assets fell 1% and stood at Rs 166 million in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 311 million as against Rs 294 million during FY21, thereby witnessing a growth of 6%.

POLYLINK POL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 246 255 3.7
 
Current Liabilities Rs m 40 47 18.1
Long-term Debt Rs m 4 3 -38.9
Total Liabilities Rs m 294 311 5.7
 
Current assets Rs m 126 145 14.8
Fixed Assets Rs m 168 166 -1.1
Total Assets Rs m 294 311 5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



POLYLINK POL Cash Flow Statement Analysis

  • POLYLINK POL's cash flow from operating activities (CFO) during FY22 stood at Rs 5 million, an improvement of 75.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -9 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 4 million on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -2 million net cash flows seen during FY21.

POLYLINK POL 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 5 75.4%
Cash Flow from Investing Activities Rs m -12 -9 -
Cash Flow from Financing Activities Rs m 7 4 -49.8%
Net Cash Flow Rs m -2 0 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for POLYLINK POL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 26.6, stands at 65.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.5 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 16.9 20.7
TTM Earnings per share Rs 0.5 0.4
Diluted earnings per share Rs 0.5 0.4
Price to Cash Flow x 13.0 28.5
TTM P/E ratio x 21.9 65.6
Price / Book Value ratio x 1.0 2.0
Market Cap Rs m 254 508
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for POLYLINK POL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY22, from 3.2x 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 10.2x during FY22, from 13.3x 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 3.5% during FY22, from 4.9% 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 6.0% during FY22, from 6.4% 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 3.4% during FY22, from 4.5% 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 3.2 3.1
Debtors’ Days Days 729 742
Interest coverage x 13.3 10.2
Debt to equity ratio x 0.0 0.0
Return on assets % 4.5 3.4
Return on equity % 4.9 3.5
Return on capital employed % 6.4 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

POLYLINK POL Share Price Performance

Over the last one year, POLYLINK POL share price has moved up from Rs 16.5 to Rs 26.6, registering a gain of Rs 10.1 or around 61.2%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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

Annual Report FAQs

What is the current share price of POLYLINK POL?

POLYLINK POL currently trades at Rs 24.4 per share. You can check out the latest share price performance of POLYLINK POL here...

What was the revenue of POLYLINK POL in FY22? How does it compare to earlier years?

The revenues of POLYLINK POL stood at Rs 461 m in FY22, which was up 21.5% compared to Rs 380 m reported in FY21.

POLYLINK POL's revenue has grown from Rs 346 m in FY18 to Rs 461 m in FY22.

Over the past 5 years, the revenue of POLYLINK POL has grown at a CAGR of 7.5%.

What was the net profit of POLYLINK POL in FY22? How does it compare to earlier years?

The net profit of POLYLINK POL stood at Rs 9 m in FY22, which was down -24.8% compared to Rs 12 m reported in FY21.

This compares to a net profit of Rs 11 m in FY20 and a net profit of Rs 11 m in FY19.

Over the past 5 years, POLYLINK POL net profit has grown at a CAGR of -11.9%.

What does the cash flow statement of POLYLINK POL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of POLYLINK POL reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 5 m as compared to Rs 3 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -9 m as compared to Rs -12 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs 4 m as compared to Rs 7 m in FY21.

Here's the cash flow statement of POLYLINK POL for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations1943835
From Investments-16-4-8-12-9
From Financial Activity-30-2974
Net Cashflow001-20

What does the Key Ratio analysis of POLYLINK POL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of POLYLINK POL reveals:

  • Operating profit margins witnessed a fall and stood at 4.4% in FY22 as against 5.0% in FY21.
  • Net profit margins declined from 3.2% in FY21 to 2.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of POLYLINK POL for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)8.44.84.15.04.4
Net Profit Margin (%)4.42.42.33.22.0
Debt to Equity Ratio (x)0.00.00.00.00.0

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