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ELANTAS BECK 2021-22 Annual Report Analysis

Sat, 31 Dec

ELANTAS BECK has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ELANTAS BECK Income Statement Analysis

• Operating income during the year rose 23.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.3% in CY22 as against 16.7% in CY21.
• Depreciation charges increased by 2.3% and finance costs increased by 148.2% YoY, respectively.
• Other income grew by 8.0% YoY.
• Net profit for the year grew by 46.2% YoY.
• Net profit margins during the year grew from 12.8% in CY21 to 15.2% in CY22.

ELANTAS BECK Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	5,221	6,447	23.5%
Other income	Rs m	163	176	8.0%
Total Revenues	Rs m	5,385	6,623	23.0%
Gross profit	Rs m	874	1,245	42.4%
Depreciation	Rs m	121	124	2.3%
Interest	Rs m	2	6	148.2%
Profit before tax	Rs m	914	1,291	41.3%
Tax	Rs m	245	314	28.0%
Profit after tax	Rs m	669	978	46.2%
Gross profit margin	%	16.7	19.3
Effective tax rate	%	26.8	24.3
Net profit margin	%	12.8	15.2

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ELANTAS BECK Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 991 million as compared to Rs 964 million in CY21, thereby witnessing an increase of 2.9%.
• Current assets rose 28% and stood at Rs 6 billion, while fixed assets fell 19% and stood at Rs 1 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 7 billion as against Rs 6 billion during CY21, thereby witnessing a growth of 16%.

ELANTAS BECK Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	5,047	5,986	18.6
Current Liabilities	Rs m	964	991	2.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,185	7,175	16.0
Current assets	Rs m	4,575	5,870	28.3
Fixed Assets	Rs m	1,610	1,305	-19.0
Total Assets	Rs m	6,185	7,175	16.0

ELANTAS BECK Cash Flow Statement Analysis

• ELANTAS BECK's cash flow from operating activities (CFO) during CY22 stood at Rs 830 million, an improvement of 190.9% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs -760 million, an improvement of 132.2% on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -46 million on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs 24 million from the Rs -84 million net cash flows seen during CY21.

ELANTAS BECK Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	285	830	190.9%
Cash Flow from Investing Activities	Rs m	-327	-760	-
Cash Flow from Financing Activities	Rs m	-42	-46	-
Net Cash Flow	Rs m	-84	24	-

Current Valuations for ELANTAS BECK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 123.3, an improvement from the EPS of Rs 84.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,348.2, stands at 35.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	658.4	813.0
TTM Earnings per share	Rs	84.3	123.3
Diluted earnings per share	Rs	84.4	123.3
Price to Cash Flow	x	36.9	28.4
TTM P/E ratio	x	43.6	35.3
Price / Book Value ratio	x	5.6	5.2
Market Cap	Rs m	28,091	31,297
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for ELANTAS BECK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.9x during CY22, from 4.7x during CY21. 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 209.9x during CY22, from 368.0x during CY21. 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 16.3% during CY22, from 13.3% during CY22. 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 21.7% during CY22, from 18.2% during CY21. 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 13.7% during CY22, from 10.9% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	4.7	5.9
Debtors’ Days	Days	607	580
Interest coverage	x	368.0	209.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	13.7
Return on equity	%	13.3	16.3
Return on capital employed	%	18.2	21.7

To see how ELANTAS BECK has performed over the last 5 years, please visit here.

ELANTAS BECK Share Price Performance

Over the last one year, ELANTAS BECK share price has moved up from Rs 3,373.7 to Rs 3,439.2, registering a gain of Rs 65.5 or around 1.9%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, check out historical annual results for ELANTAS BECK and quarterly results for ELANTAS BECK)