VADILAL INDUSTRIES 2021-22 Annual Report Analysis

Fri, 7 Oct

VADILAL INDUSTRIES 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.

VADILAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 50.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 183.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.2% in FY22 as against 7.5% in FY21.
• Depreciation charges increased by 4.9% and finance costs decreased by 9.6% YoY, respectively.
• Other income declined by 51.0% YoY.
• Net profit for the year grew by 865.9% YoY.
• Net profit margins during the year grew from 1.0% in FY21 to 6.4% in FY22.

VADILAL INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,634	6,977	50.6%
Other income	Rs m	172	84	-51.0%
Total Revenues	Rs m	4,805	7,061	47.0%
Gross profit	Rs m	348	988	183.7%
Depreciation	Rs m	228	240	4.9%
Interest	Rs m	214	194	-9.6%
Profit before tax	Rs m	77	638	730.6%
Tax	Rs m	31	191	525.8%
Profit after tax	Rs m	46	447	865.9%
Gross profit margin	%	7.5	14.2
Effective tax rate	%	39.8	30.0
Net profit margin	%	1.0	6.4

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VADILAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -6.2%.
• Long-term debt stood at Rs 773 million as compared to Rs 572 million during FY21, a growth of 35.2%.
• Current assets rose 25% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 6 billion during FY21, thereby witnessing a growth of 10%.

VADILAL INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,511	2,973	18.4
Current Liabilities	Rs m	2,324	2,179	-6.2
Long-term Debt	Rs m	572	773	35.2
Total Liabilities	Rs m	5,675	6,233	9.8
Current assets	Rs m	2,421	3,025	24.9
Fixed Assets	Rs m	3,254	3,208	-1.4
Total Assets	Rs m	5,675	6,233	9.8

VADILAL INDUSTRIES Cash Flow Statement Analysis

• VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 320 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -199 million, an improvement of 83.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 78 million, an improvement of 114% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 199 million from the Rs 156 million net cash flows seen during FY21.

VADILAL INDUSTRIES 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	821	320	-61.0%
Cash Flow from Investing Activities	Rs m	-108	-199	-
Cash Flow from Financing Activities	Rs m	-556	78	-
Net Cash Flow	Rs m	156	199	27.7%

Current Valuations for VADILAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.2, an improvement from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,573.0, stands at 22.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	644.4	970.4
TTM Earnings per share	Rs	6.4	62.2
Diluted earnings per share	Rs	6.4	62.2
Price to Cash Flow	x	23.5	12.2
TTM P/E ratio	x	139.6	22.7
Price / Book Value ratio	x	2.0	2.8
Market Cap	Rs m	5,136	8,364
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for VADILAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.0x 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 4.3x during FY22, from 1.4x 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 improved and stood at 15.0% during FY22, from 1.8% 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 22.2% during FY22, from 9.4% 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 10.3% during FY22, from 4.6% 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	1.0	1.4
Debtors’ Days	Days	357	342
Interest coverage	x	1.4	4.3
Debt to equity ratio	x	0.2	0.3
Return on assets	%	4.6	10.3
Return on equity	%	1.8	15.0
Return on capital employed	%	9.4	22.2

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

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved up from Rs 1,079.4 to Rs 2,573.0, registering a gain of Rs 1,493.6 or around 138.4%.

Overall, the S&P BSE SENSEX is down 2.1% over the year.

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

Read: Latest Annual Report Analysis of VADILAL INDUSTRIES