VISHNU CHEM 2021-22 Annual Report Analysis

Wed, 22 Jun

VISHNU CHEM 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.

VISHNU CHEM Income Statement Analysis

• Operating income during the year rose 33.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.1% in FY22 as against 11.6% in FY21.
• Depreciation charges decreased by 5.1% and finance costs decreased by 5.5% YoY, respectively.
• Other income grew by 133.8% YoY.
• Net profit for the year grew by 89.1% YoY.
• Net profit margins during the year grew from 5.1% in FY21 to 7.2% in FY22.

VISHNU CHEM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,787	9,067	33.6%
Other income	Rs m	28	66	133.8%
Total Revenues	Rs m	6,815	9,133	34.0%
Gross profit	Rs m	788	1,275	61.9%
Depreciation	Rs m	203	193	-5.1%
Interest	Rs m	273	258	-5.5%
Profit before tax	Rs m	340	891	161.9%
Tax	Rs m	-5	238	-4,941.1%
Profit after tax	Rs m	345	652	89.1%
Gross profit margin	%	11.6	14.1
Effective tax rate	%	-1.4	26.7
Net profit margin	%	5.1	7.2

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VISHNU CHEM Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an decrease of -1.6%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY21, a fall of 0.5%.
• Current assets rose 5% and stood at Rs 4 billion, while fixed assets fell 5% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 8 billion during FY21, thereby witnessing a fall of 0%.

VISHNU CHEM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,961	2,162	10.2
Current Liabilities	Rs m	3,277	3,225	-1.6
Long-term Debt	Rs m	1,749	1,741	-0.5
Total Liabilities	Rs m	7,729	7,695	-0.4
Current assets	Rs m	3,484	3,652	4.8
Fixed Assets	Rs m	4,245	4,044	-4.7
Total Assets	Rs m	7,729	7,695	-0.4

VISHNU CHEM Cash Flow Statement Analysis

• VISHNU CHEM's cash flow from operating activities (CFO) during FY22 stood at Rs 870 million, an improvement of 29.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -345 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -525 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -36 million net cash flows seen during FY21.

VISHNU CHEM 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	674	870	29.1%
Cash Flow from Investing Activities	Rs m	-518	-345	-
Cash Flow from Financing Activities	Rs m	-191	-525	-
Net Cash Flow	Rs m	-36	0	-

Current Valuations for VISHNU CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.6, an improvement from the EPS of Rs 28.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,413.3, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 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	567.9	758.7
TTM Earnings per share	Rs	28.9	54.6
Diluted earnings per share	Rs	28.9	54.6
Price to Cash Flow	x	6.2	14.6
TTM P/E ratio	x	9.9	20.7
Price / Book Value ratio	x	1.1	5.7
Market Cap	Rs m	2,109	12,357
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for VISHNU CHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 1.1x 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 4.5x during FY22, from 2.2x 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 30.2% during FY22, from 17.6% 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 29.4% 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 11.8% during FY22, from 8.0% 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	1.1	1.1
Debtors’ Days	Days	622	688
Interest coverage	x	2.2	4.5
Debt to equity ratio	x	0.9	0.8
Return on assets	%	8.0	11.8
Return on equity	%	17.6	30.2
Return on capital employed	%	16.5	29.4

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

VISHNU CHEM Share Price Performance

Over the last one year, VISHNU CHEM share price has moved up from Rs 492.6 to Rs 1,413.3, registering a gain of Rs 920.7 or around 186.9%.

Overall, the S&P BSE SENSEX is down 1.0% over the year.

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

Read: Latest Annual Report Analysis of VISHNU CHEM