POLYCAB INDIA 2021-22 Annual Report Analysis

Tue, 14 Jun

POLYCAB INDIA 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.

POLYCAB INDIA Income Statement Analysis

• Operating income during the year rose 38.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY22 as against 12.6% in FY21.
• Depreciation charges increased by 14.4% and finance costs decreased by 17.6% YoY, respectively.
• Other income declined by 12.0% YoY.
• Net profit for the year grew by 0.8% YoY.
• Net profit margins during the year declined from 9.6% in FY21 to 6.9% in FY22.

POLYCAB INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	87,922	122,038	38.8%
Other income	Rs m	1,193	1,049	-12.0%
Total Revenues	Rs m	89,115	123,087	38.1%
Gross profit	Rs m	11,111	12,502	12.5%
Depreciation	Rs m	1,762	2,015	14.4%
Interest	Rs m	427	352	-17.6%
Profit before tax	Rs m	10,116	11,184	10.6%
Tax	Rs m	1,703	2,706	58.9%
Profit after tax	Rs m	8,412	8,478	0.8%
Gross profit margin	%	12.6	10.2
Effective tax rate	%	16.8	24.2
Net profit margin	%	9.6	6.9

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POLYCAB INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 17 billion as compared to Rs 20 billion in FY21, thereby witnessing an decrease of -13.6%.
• Long-term debt down at Rs 30 million as compared to Rs 1 billion during FY21, a fall of 97.1%.
• Current assets rose 8% and stood at Rs 51 billion, while fixed assets rose 1% and stood at Rs 23 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 74 billion as against Rs 70 billion during FY21, thereby witnessing a growth of 6%.

POLYCAB INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	47,248	55,086	16.6
Current Liabilities	Rs m	20,146	17,413	-13.6
Long-term Debt	Rs m	1,037	30	-97.1
Total Liabilities	Rs m	70,147	74,119	5.7
Current assets	Rs m	47,726	51,411	7.7
Fixed Assets	Rs m	22,421	22,708	1.3
Total Assets	Rs m	70,147	74,119	5.7

POLYCAB INDIA Cash Flow Statement Analysis

• POLYCAB INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs 656 million net cash flows seen during FY21.

POLYCAB INDIA 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	12,524	5,116	-59.2%
Cash Flow from Investing Activities	Rs m	-10,121	-4,270	-
Cash Flow from Financing Activities	Rs m	-1,748	-2,007	-
Net Cash Flow	Rs m	656	-1,160	-

Current Valuations for POLYCAB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.7, an improvement from the EPS of Rs 56.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,203.4, stands at 38.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 29.1 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	589.6	816.6
TTM Earnings per share	Rs	56.4	56.7
Diluted earnings per share	Rs	56.2	56.7
Price to Cash Flow	x	20.3	29.1
TTM P/E ratio	x	23.8	38.7
Price / Book Value ratio	x	3.3	5.6
Market Cap	Rs m	154,196	305,846
Dividends per share (Unadj.)	Rs	10.0	14.0

Ratio Analysis for POLYCAB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY22, from 2.4x 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 32.8x during FY22, from 24.7x 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 15.4% during FY22, from 17.8% 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 20.9% during FY22, from 21.8% 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 11.9% during FY22, from 12.6% 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	2.4	3.0
Debtors’ Days	Days	60	39
Interest coverage	x	24.7	32.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	11.9
Return on equity	%	17.8	15.4
Return on capital employed	%	21.8	20.9

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

POLYCAB INDIA Share Price Performance

Over the last one year, POLYCAB INDIA share price has moved up from Rs 1,813.7 to Rs 2,203.4, registering a gain of Rs 389.8 or around 21.5%.

Overall, the S&P BSE SENSEX is up 0.4% over the year.

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

Read: Latest Annual Report Analysis of POLYCAB INDIA