IOL CHEMICALS & PHARM. 2021-22 Annual Report Analysis

Sun, 7 Aug

IOL CHEMICALS & PHARM. 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.

IOL CHEMICALS & PHARM. Income Statement Analysis

• Operating income during the year rose 11.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 58.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY22 as against 30.1% in FY21.
• Depreciation charges increased by 11.2% and finance costs increased by 42.2% YoY, respectively.
• Other income grew by 31.9% YoY.
• Net profit for the year declined by 62.3% YoY.
• Net profit margins during the year declined from 22.6% in FY21 to 7.7% in FY22.

IOL CHEMICALS & PHARM. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,670	21,840	11.0%
Other income	Rs m	243	320	31.9%
Total Revenues	Rs m	19,913	22,161	11.3%
Gross profit	Rs m	5,918	2,444	-58.7%
Depreciation	Rs m	389	433	11.2%
Interest	Rs m	58	83	42.2%
Profit before tax	Rs m	5,714	2,249	-60.6%
Tax	Rs m	1,268	572	-54.9%
Profit after tax	Rs m	4,446	1,677	-62.3%
Gross profit margin	%	30.1	11.2
Effective tax rate	%	22.2	25.4
Net profit margin	%	22.6	7.7

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IOL CHEMICALS & PHARM. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 32.9%.
• Current assets fell 1% and stood at Rs 11 billion, while fixed assets rose 47% and stood at Rs 9 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 18 billion during FY21, thereby witnessing a growth of 16%.

IOL CHEMICALS & PHARM. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	12,604	13,923	10.5
Current Liabilities	Rs m	4,328	5,753	32.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,523	20,242	15.5
Current assets	Rs m	11,522	11,427	-0.8
Fixed Assets	Rs m	6,002	8,815	46.9
Total Assets	Rs m	17,523	20,242	15.5

IOL CHEMICALS & PHARM. Cash Flow Statement Analysis

• IOL CHEMICALS & PHARM.'s cash flow from operating activities (CFO) during FY22 stood at Rs 931 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -16 million, an improvement of 97% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -288 million from the Rs 43 million net cash flows seen during FY21.

IOL CHEMICALS & PHARM. 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	3,798	931	-75.5%
Cash Flow from Investing Activities	Rs m	-3,173	-1,202	-
Cash Flow from Financing Activities	Rs m	-583	-16	-
Net Cash Flow	Rs m	43	-288	-

Current Valuations for IOL CHEMICALS & PHARM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.6, an decline from the EPS of Rs 75.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 362.1, stands at 12.7 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 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	335.0	372.0
TTM Earnings per share	Rs	75.7	28.6
Diluted earnings per share	Rs	75.7	28.6
Price to Cash Flow	x	6.7	14.2
TTM P/E ratio	x	7.3	12.7
Price / Book Value ratio	x	2.5	2.2
Market Cap	Rs m	31,493	29,943
Dividends per share (Unadj.)	Rs	6.0	4.0

Ratio Analysis for IOL CHEMICALS & PHARM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.7x 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 deteriorated and stood at 28.1x during FY22, from 99.0x 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 declined and down at 12.0% during FY22, from 35.3% 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 declined and down at 16.7% during FY22, from 45.8% 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 8.7% during FY22, from 25.7% 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	2.7	2.0
Debtors’ Days	Days	6	8
Interest coverage	x	99.0	28.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	25.7	8.7
Return on equity	%	35.3	12.0
Return on capital employed	%	45.8	16.7

To see how IOL CHEMICALS & PHARM. has performed over the last 5 years, please visit here.

IOL CHEMICALS & PHARM. Share Price Performance

Over the last one year, IOL CHEMICALS & PHARM. share price has moved down from Rs 643.4 to Rs 362.1, registering a loss of Rs 281.3 or around 43.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,184.7 (down 0.3%). Over the last one year it has moved down from 26,369.7 to 23,184.7, a loss of 3,185 points (down 12.1%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for IOL CHEMICALS & PHARM. and quarterly results for IOL CHEMICALS & PHARM.)

Read: Latest Annual Report Analysis of IOL CHEMICALS & PHARM.