PATANJALI FOODS 2021-22 Annual Report Analysis

Fri, 7 Oct

PATANJALI FOODS 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.

PATANJALI FOODS Income Statement Analysis

• Operating income during the year rose 48.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.2% in FY22 as against 5.9% in FY21.
• Depreciation charges increased by 2.6% and finance costs decreased by 3.8% YoY, respectively.
• Other income grew by 22.8% YoY.
• Net profit for the year grew by 18.4% YoY.
• Net profit margins during the year declined from 4.2% in FY21 to 3.3% in FY22.

PATANJALI FOODS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	163,186	242,054	48.3%
Other income	Rs m	643	790	22.8%
Total Revenues	Rs m	163,830	242,844	48.2%
Gross profit	Rs m	9,559	14,906	55.9%
Depreciation	Rs m	1,333	1,367	2.6%
Interest	Rs m	3,726	3,585	-3.8%
Profit before tax	Rs m	5,144	10,744	108.9%
Tax	Rs m	-1,664	2,681	NA
Profit after tax	Rs m	6,808	8,063	18.4%
Gross profit margin	%	5.9	6.2
Effective tax rate	%	-32.3	25.0
Net profit margin	%	4.2	3.3

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PATANJALI FOODS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 23 billion as compared to Rs 17 billion in FY21, thereby witnessing an increase of 30.3%.
• Long-term debt down at Rs 27 billion as compared to Rs 29 billion during FY21, a fall of 6.1%.
• Current assets rose 72% and stood at Rs 64 billion, while fixed assets fell 1% and stood at Rs 51 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 114 billion as against Rs 88 billion during FY21, thereby witnessing a growth of 29%.

PATANJALI FOODS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	40,624	48,810	20.2
Current Liabilities	Rs m	17,295	22,536	30.3
Long-term Debt	Rs m	28,798	27,055	-6.1
Total Liabilities	Rs m	88,424	114,409	29.4
Current assets	Rs m	36,844	63,514	72.4
Fixed Assets	Rs m	51,543	50,855	-1.3
Total Assets	Rs m	88,424	114,409	29.4

PATANJALI FOODS Cash Flow Statement Analysis

• PATANJALI FOODS's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion, an improvement of 200.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -14 billion, an improvement of 3,230.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 10 billion, an improvement of 422% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs -1 billion net cash flows seen during FY21.

PATANJALI FOODS 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	2,409	7,242	200.7%
Cash Flow from Investing Activities	Rs m	-416	-13,845	-
Cash Flow from Financing Activities	Rs m	-3,068	9,889	-
Net Cash Flow	Rs m	-1,075	3,287	-

Current Valuations for PATANJALI FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.3, an improvement from the EPS of Rs 23.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,408.0, stands at 58.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 31.3 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	551.8	818.4
TTM Earnings per share	Rs	23.0	27.3
Diluted earnings per share	Rs	18.8	22.3
Price to Cash Flow	x	28.5	31.3
TTM P/E ratio	x	34.1	58.3
Price / Book Value ratio	x	6.2	6.0
Market Cap	Rs m	253,500	295,173
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for PATANJALI FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY22, from 2.1x 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 4.0x during FY22, from 2.4x 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 16.5% during FY22, from 16.8% 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 improved and stood at 18.9% during FY22, from 12.8% 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 10.2% during FY22, from 11.9% 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	2.1	2.8
Debtors’ Days	Days	98	120
Interest coverage	x	2.4	4.0
Debt to equity ratio	x	0.7	0.6
Return on assets	%	11.9	10.2
Return on equity	%	16.8	16.5
Return on capital employed	%	12.8	18.9

To see how PATANJALI FOODS has performed over the last 5 years, please visit here.

PATANJALI FOODS Share Price Performance

Over the last one year, PATANJALI FOODS share price has moved up from Rs 1,052.6 to Rs 1,408.0, registering a gain of Rs 355.5 or around 33.8%.

Overall, the S&P BSE SENSEX is down 1.9% over the year.

(To know more, check out historical annual results for PATANJALI FOODS and quarterly results for PATANJALI FOODS)

Read: Latest Annual Report Analysis of PATANJALI FOODS