USHA MARTIN 2021-22 Annual Report Analysis

Tue, 5 Jul

USHA MARTIN 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.

USHA MARTIN Income Statement Analysis

• Operating income during the year fell 13.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY22 as against 11.6% in FY21.
• Depreciation charges decreased by 53.7% and finance costs decreased by 45.2% YoY, respectively.
• Other income declined by 32.1% YoY.
• Net profit for the year grew by 43.8% YoY.
• Net profit margins during the year grew from 7.0% in FY21 to 11.7% in FY22.

USHA MARTIN Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	20,973	18,101	-13.7%
Other income	Rs m	655	445	-32.1%
Total Revenues	Rs m	21,628	18,545	-14.3%
Gross profit	Rs m	2,426	2,715	11.9%
Depreciation	Rs m	679	314	-53.7%
Interest	Rs m	569	312	-45.2%
Profit before tax	Rs m	1,834	2,534	38.2%
Tax	Rs m	364	421	15.6%
Profit after tax	Rs m	1,469	2,113	43.8%
Gross profit margin	%	11.6	15.0
Effective tax rate	%	19.9	16.6
Net profit margin	%	7.0	11.7

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USHA MARTIN Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 4 billion as compared to Rs 8 billion in FY21, thereby witnessing an decrease of -50.9%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY21, a fall of 49.0%.
• Current assets fell 40% and stood at Rs 8 billion, while fixed assets fell 43% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 26 billion during FY21, thereby witnessing a fall of 41%.

USHA MARTIN Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	14,035	9,275	-33.9
Current Liabilities	Rs m	8,178	4,016	-50.9
Long-term Debt	Rs m	2,374	1,210	-49.0
Total Liabilities	Rs m	25,835	15,172	-41.3
Current assets	Rs m	14,005	8,371	-40.2
Fixed Assets	Rs m	11,830	6,801	-42.5
Total Assets	Rs m	25,835	15,172	-41.3

USHA MARTIN Cash Flow Statement Analysis

• USHA MARTIN's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 688 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 929 million from the Rs 21 million net cash flows seen during FY21.

USHA MARTIN 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	2,137	1,849	-13.5%
Cash Flow from Investing Activities	Rs m	-345	688	-
Cash Flow from Financing Activities	Rs m	-1,775	-1,608	-
Net Cash Flow	Rs m	21	929	4,241.6%

Current Valuations for USHA MARTIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.0, stands at 14.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 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	68.8	59.4
TTM Earnings per share	Rs	4.8	6.9
Diluted earnings per share	Rs	4.8	6.9
Price to Cash Flow	x	4.7	10.7
TTM P/E ratio	x	6.7	14.0
Price / Book Value ratio	x	0.6	2.8
Market Cap	Rs m	7,847	25,934
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for USHA MARTIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x 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 9.1x during FY22, from 4.2x 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 22.8% during FY22, from 10.5% 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 27.1% during FY22, from 14.6% 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 16.0% during FY22, from 7.9% 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	2.1
Debtors’ Days	Days	570	498
Interest coverage	x	4.2	9.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.9	16.0
Return on equity	%	10.5	22.8
Return on capital employed	%	14.6	27.1

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

USHA MARTIN Share Price Performance

Over the last one year, USHA MARTIN share price has moved up from Rs 56.8 to Rs 130.0, registering a gain of Rs 73.3 or around 129.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 15,433.5 (up 0.3%). Over the last one year it has moved down from 18,706.9 to 15,433.5, a loss of 3,273 points (down 17.5%).

Overall, the S&P BSE SENSEX is up 1.5% over the year.

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

Read: Latest Annual Report Analysis of USHA MARTIN