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PRECISION METALIKS 2021-22 Annual Report Analysis

Tue, 20 Sep

PRECISION METALIKS 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.

PRECISION METALIKS Income Statement Analysis

• Operating income during the year rose 155.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 162.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.4% in FY22 as against 3.3% in FY21.
• Depreciation charges decreased by 16.9% and finance costs increased by 70.0% YoY, respectively.
• Other income grew by 7000.0% YoY.
• Net profit for the year grew by 131.6% YoY.
• Net profit margins during the year declined from 3.0% in FY21 to 2.8% in FY22.

PRECISION METALIKS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	492	1,256	155.1%
Other income	Rs m	0	1	7,000.0%
Total Revenues	Rs m	492	1,257	155.2%
Gross profit	Rs m	16	43	162.7%
Depreciation	Rs m	1	1	-16.9%
Interest	Rs m	0	0	70.0%
Profit before tax	Rs m	15	43	182.6%
Tax	Rs m	0	8	4,416.7%
Profit after tax	Rs m	15	35	131.6%
Gross profit margin	%	3.3	3.4
Effective tax rate	%	1.2	19.0
Net profit margin	%	3.0	2.8

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PRECISION METALIKS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 50 million as compared to Rs 61 million in FY21, thereby witnessing an decrease of -17.6%.
• Current assets rose 132% and stood at Rs 429 million, while fixed assets fell 4% and stood at Rs 29 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 458 million as against Rs 215 million during FY21, thereby witnessing a growth of 113%.

PRECISION METALIKS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	154	408	165.3
Current Liabilities	Rs m	61	50	-17.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	215	458	113.2
Current assets	Rs m	185	429	132.4
Fixed Assets	Rs m	30	29	-3.7
Total Assets	Rs m	215	458	113.2

PRECISION METALIKS Cash Flow Statement Analysis

• PRECISION METALIKS's cash flow from operating activities (CFO) during FY22 stood at Rs -112 million, an improvement of 322.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 211 million, an improvement of 547% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 99 million from the Rs 6 million net cash flows seen during FY21.

PRECISION METALIKS 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	-27	-112	-
Cash Flow from Investing Activities	Rs m	0	0	-
Cash Flow from Financing Activities	Rs m	33	211	546.7%
Net Cash Flow	Rs m	6	99	1,545.6%

Current Valuations for PRECISION METALIKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an decline from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 37.0, stands at 17.4 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	390.8	77.2
TTM Earnings per share	Rs	11.9	2.1
Diluted earnings per share	Rs	0.9	2.1
Price to Cash Flow	x	0.0	20.5
TTM P/E ratio	x	0.0	17.4
Price / Book Value ratio	x	0.0	1.8
Market Cap	Rs m	0	731
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRECISION METALIKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.5x during FY22, from 3.0x 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 252.4x during FY22, from 152.2x 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 8.5% during FY22, from 9.7% 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 10.5% during FY22, from 9.9% 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 improved and stood at 7.6% during FY22, from 7.0% 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	3.0	8.5
Debtors’ Days	Days	0	630
Interest coverage	x	152.2	252.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.0	7.6
Return on equity	%	9.7	8.5
Return on capital employed	%	9.9	10.5

To see how PRECISION METALIKS has performed over the last 5 years, please visit here.

PRECISION METALIKS Share Price Performance

Over the last one year, PRECISION METALIKS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 1.0% over the year.

(To know more, check out historical annual results for PRECISION METALIKS and quarterly results for PRECISION METALIKS)