SHARDA CROPCHEM 2021-22 Annual Report Analysis

Fri, 8 Jul

SHARDA CROPCHEM 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.

SHARDA CROPCHEM Income Statement Analysis

• Operating income during the year rose 49.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY22 as against 18.0% in FY21.
• Depreciation charges increased by 43.9% and finance costs decreased by 7.5% YoY, respectively.
• Other income declined by 56.1% YoY.
• Net profit for the year grew by 52.4% YoY.
• Net profit margins during the year grew from 9.6% in FY21 to 9.8% in FY22.

SHARDA CROPCHEM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	23,956	35,798	49.4%
Other income	Rs m	658	289	-56.1%
Total Revenues	Rs m	24,614	36,086	46.6%
Gross profit	Rs m	4,303	6,957	61.7%
Depreciation	Rs m	1,704	2,453	43.9%
Interest	Rs m	162	150	-7.5%
Profit before tax	Rs m	3,095	4,642	50.0%
Tax	Rs m	802	1,150	43.3%
Profit after tax	Rs m	2,292	3,493	52.4%
Gross profit margin	%	18.0	19.4
Effective tax rate	%	25.9	24.8
Net profit margin	%	9.6	9.8

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

SHARDA CROPCHEM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 17 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 48.5%.
• Current assets rose 36% and stood at Rs 29 billion, while fixed assets rose 17% and stood at Rs 14 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 42 billion as against Rs 33 billion during FY21, thereby witnessing a growth of 29%.

SHARDA CROPCHEM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,143	19,125	18.5
Current Liabilities	Rs m	11,399	16,929	48.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	32,611	42,157	29.3
Current assets	Rs m	20,999	28,526	35.8
Fixed Assets	Rs m	11,612	13,631	17.4
Total Assets	Rs m	32,611	42,157	29.3

SHARDA CROPCHEM Cash Flow Statement Analysis

• SHARDA CROPCHEM's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 8.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -910 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -289 million from the Rs 78 million net cash flows seen during FY21.

SHARDA CROPCHEM 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	2,464	2,671	8.4%
Cash Flow from Investing Activities	Rs m	-2,816	-2,079	-
Cash Flow from Financing Activities	Rs m	434	-910	-
Net Cash Flow	Rs m	78	-289	-

Current Valuations for SHARDA CROPCHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.7, an improvement from the EPS of Rs 25.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 645.1, stands at 16.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	265.5	396.8
TTM Earnings per share	Rs	25.4	38.7
Diluted earnings per share	Rs	25.4	38.7
Price to Cash Flow	x	6.5	7.2
TTM P/E ratio	x	11.3	16.7
Price / Book Value ratio	x	1.3	2.2
Market Cap	Rs m	21,563	42,719
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for SHARDA CROPCHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.8x 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 31.9x during FY22, from 20.1x 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 improved and stood at 18.3% during FY22, from 14.2% 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 improved and stood at 25.1% during FY22, from 20.2% 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 8.6% during FY22, from 7.5% 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	1.8	1.7
Debtors’ Days	Days	1,771	1,570
Interest coverage	x	20.1	31.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	8.6
Return on equity	%	14.2	18.3
Return on capital employed	%	20.2	25.1

To see how SHARDA CROPCHEM has performed over the last 5 years, please visit here.

SHARDA CROPCHEM Share Price Performance

Over the last one year, SHARDA CROPCHEM share price has moved up from Rs 354.4 to Rs 645.1, registering a gain of Rs 290.7 or around 82.0%.

Overall, the S&P BSE SENSEX is up 3.1% over the year.

(To know more, check out historical annual results for SHARDA CROPCHEM and quarterly results for SHARDA CROPCHEM)

Read: Latest Annual Report Analysis of SHARDA CROPCHEM