TINPLATE 2021-22 Annual Report Analysis

Mon, 20 Jun

TINPLATE 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.

TINPLATE Income Statement Analysis

• Operating income during the year rose 86.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 186.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 7.6% in FY21.
• Depreciation charges decreased by 1.4% and finance costs increased by 5.7% YoY, respectively.
• Other income grew by 54.0% YoY.
• Net profit for the year grew by 259.6% YoY.
• Net profit margins during the year grew from 4.3% in FY21 to 8.3% in FY22.

TINPLATE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	22,814	42,495	86.3%
Other income	Rs m	279	430	54.0%
Total Revenues	Rs m	23,093	42,925	85.9%
Gross profit	Rs m	1,734	4,972	186.7%
Depreciation	Rs m	617	608	-1.4%
Interest	Rs m	78	82	5.7%
Profit before tax	Rs m	1,319	4,712	257.2%
Tax	Rs m	338	1,183	250.3%
Profit after tax	Rs m	981	3,529	259.6%
Gross profit margin	%	7.6	11.7
Effective tax rate	%	25.6	25.1
Net profit margin	%	4.3	8.3

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TINPLATE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 55.7%.
• Current assets rose 71% and stood at Rs 15 billion, while fixed assets rose 23% and stood at Rs 9 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 24 billion as against Rs 16 billion during FY21, thereby witnessing a growth of 48%.

TINPLATE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,461	11,710	38.4
Current Liabilities	Rs m	5,106	7,949	55.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,269	24,095	48.1
Current assets	Rs m	8,562	14,625	70.8
Fixed Assets	Rs m	7,707	9,470	22.9
Total Assets	Rs m	16,269	24,095	48.1

TINPLATE Cash Flow Statement Analysis

• TINPLATE's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 79.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 130.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -307 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 498 million from the Rs 726 million net cash flows seen during FY21.

TINPLATE 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	2,525	4,539	79.8%
Cash Flow from Investing Activities	Rs m	-1,621	-3,734	-
Cash Flow from Financing Activities	Rs m	-179	-307	-
Net Cash Flow	Rs m	726	498	-31.4%

Current Valuations for TINPLATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.7, an improvement from the EPS of Rs 9.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 296.5, stands at 8.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	218.0	406.0
TTM Earnings per share	Rs	9.4	33.7
Diluted earnings per share	Rs	9.4	33.7
Price to Cash Flow	x	10.5	7.4
TTM P/E ratio	x	17.1	8.8
Price / Book Value ratio	x	1.7	2.6
Market Cap	Rs m	14,101	30,563
Dividends per share (Unadj.)	Rs	2.0	4.0

Ratio Analysis for TINPLATE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.7x 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 58.5x during FY22, from 18.0x 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 30.1% during FY22, from 11.6% 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 40.9% during FY22, from 16.5% 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 15.0% during FY22, from 6.5% 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	1.7	1.8
Debtors’ Days	Days	121	45
Interest coverage	x	18.0	58.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.5	15.0
Return on equity	%	11.6	30.1
Return on capital employed	%	16.5	40.9

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

TINPLATE Share Price Performance

Over the last one year, TINPLATE share price has moved up from Rs 205.9 to Rs 296.5, registering a gain of Rs 90.6 or around 44.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 15,217.9 (down 4.5%). Over the last one year it has moved down from 18,058.6 to 15,217.9, a loss of 2,841 points (down 15.7%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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

Read: Latest Annual Report Analysis of TINPLATE