TATA METALIK 2021-22 Annual Report Analysis

Sat, 16 Jul

TATA METALIK 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.

TATA METALIK Income Statement Analysis

• Operating income during the year rose 43.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY22 as against 20.4% in FY21.
• Depreciation charges decreased by 8.1% and finance costs increased by 2.9% YoY, respectively.
• Other income grew by 209.3% YoY.
• Net profit for the year grew by 7.9% YoY.
• Net profit margins during the year declined from 11.5% in FY21 to 8.7% in FY22.

TATA METALIK Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,167	27,455	43.2%
Other income	Rs m	81	252	209.3%
Total Revenues	Rs m	19,248	27,707	43.9%
Gross profit	Rs m	3,904	4,013	2.8%
Depreciation	Rs m	671	617	-8.1%
Interest	Rs m	248	255	2.9%
Profit before tax	Rs m	3,066	3,393	10.7%
Tax	Rs m	860	1,013	17.7%
Profit after tax	Rs m	2,206	2,381	7.9%
Gross profit margin	%	20.4	14.6
Effective tax rate	%	28.0	29.8
Net profit margin	%	11.5	8.7

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TATA METALIK 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 57.9%.
• Current assets rose 21% and stood at Rs 11 billion, while fixed assets rose 31% and stood at Rs 13 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 23 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 26%.

TATA METALIK Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,001	15,253	17.3
Current Liabilities	Rs m	3,854	6,086	57.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,618	23,492	26.2
Current assets	Rs m	8,958	10,818	20.8
Fixed Assets	Rs m	9,661	12,674	31.2
Total Assets	Rs m	18,618	23,492	26.2

TATA METALIK Cash Flow Statement Analysis

• TATA METALIK's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 67.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 36.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -561 million, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 335 million from the Rs -675 million net cash flows seen during FY21.

TATA METALIK 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	2,812	4,703	67.2%
Cash Flow from Investing Activities	Rs m	-2,788	-3,807	-
Cash Flow from Financing Activities	Rs m	-700	-561	-
Net Cash Flow	Rs m	-675	335	-

Current Valuations for TATA METALIK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.4, an improvement from the EPS of Rs 69.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 698.9, stands at 15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	606.9	869.4
TTM Earnings per share	Rs	69.9	75.4
Diluted earnings per share	Rs	69.9	75.4
Price to Cash Flow	x	8.9	10.9
TTM P/E ratio	x	11.7	15.3
Price / Book Value ratio	x	1.5	2.1
Market Cap	Rs m	19,947	32,672
Dividends per share (Unadj.)	Rs	4.0	8.0

Ratio Analysis for TATA METALIK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY22, from 2.3x 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 14.3x during FY22, from 13.4x 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 15.6% during FY22, from 17.0% 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 23.9% during FY22, from 25.5% 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 declined and down at 11.2% during FY22, from 13.2% 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	2.3	1.8
Debtors’ Days	Days	470	281
Interest coverage	x	13.4	14.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.2	11.2
Return on equity	%	17.0	15.6
Return on capital employed	%	25.5	23.9

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

TATA METALIK Share Price Performance

Over the last one year, TATA METALIK share price has moved down from Rs 1,273.0 to Rs 698.9, registering a loss of Rs 574.1 or around 45.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 15,924.6 (down 1.0%). Over the last one year it has moved down from 19,499.2 to 15,924.6, a loss of 3,575 points (down 18.3%).

Overall, the S&P BSE SENSEX is up 1.6% over the year.

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

Read: Latest Annual Report Analysis of TATA METALIK