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VARDHMAN ACRYLICS 2021-22 Annual Report Analysis

Mon, 17 Oct

VARDHMAN ACRYLICS 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.

VARDHMAN ACRYLICS Income Statement Analysis

• Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.9% in FY22 as against 17.0% in FY21.
• Depreciation charges increased by 0.0% and finance costs decreased by 26.4% YoY, respectively.
• Other income declined by 6.3% YoY.
• Net profit for the year declined by 66.1% YoY.
• Net profit margins during the year declined from 15.3% in FY21 to 4.8% in FY22.

VARDHMAN ACRYLICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,802	3,033	8.3%
Other income	Rs m	154	144	-6.3%
Total Revenues	Rs m	2,956	3,177	7.5%
Gross profit	Rs m	477	88	-81.5%
Depreciation	Rs m	54	54	0.0%
Interest	Rs m	5	4	-26.4%
Profit before tax	Rs m	571	174	-69.5%
Tax	Rs m	142	29	-79.8%
Profit after tax	Rs m	429	146	-66.1%
Gross profit margin	%	17.0	2.9
Effective tax rate	%	24.8	16.5
Net profit margin	%	15.3	4.8

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VARDHMAN ACRYLICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 6.1%.
• Current assets fell 33% and stood at Rs 4 billion, while fixed assets rose 1% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 27%.

VARDHMAN ACRYLICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,984	2,123	-46.7
Current Liabilities	Rs m	2,299	2,439	6.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,392	4,643	-27.4
Current assets	Rs m	5,265	3,510	-33.3
Fixed Assets	Rs m	1,127	1,133	0.5
Total Assets	Rs m	6,392	4,643	-27.4

VARDHMAN ACRYLICS Cash Flow Statement Analysis

• VARDHMAN ACRYLICS 's cash flow from operating activities (CFO) during FY22 stood at Rs -94 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -171 million from the Rs -442 million net cash flows seen during FY21.

VARDHMAN ACRYLICS 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	395	-94	-
Cash Flow from Investing Activities	Rs m	-826	1,901	-
Cash Flow from Financing Activities	Rs m	-11	-1,978	-
Net Cash Flow	Rs m	-442	-171	-

Current Valuations for VARDHMAN ACRYLICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 51.8, stands at 22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.7 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	34.9	37.7
TTM Earnings per share	Rs	5.3	1.8
Diluted earnings per share	Rs	5.3	1.8
Price to Cash Flow	x	0.0	23.7
TTM P/E ratio	x	0.0	22.4
Price / Book Value ratio	x	0.7	2.2
Market Cap	Rs m	2,754	4,739
Dividends per share (Unadj.)	Rs	0.0	25.0

Ratio Analysis for VARDHMAN ACRYLICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 deteriorated and stood at 45.7x during FY22, from 108.8x 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 6.9% during FY22, from 10.8% 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 declined and down at 8.4% during FY22, from 14.5% 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 3.2% during FY22, from 6.8% 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	1.4
Debtors’ Days	Days	196	127
Interest coverage	x	108.8	45.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.8	3.2
Return on equity	%	10.8	6.9
Return on capital employed	%	14.5	8.4

To see how VARDHMAN ACRYLICS has performed over the last 5 years, please visit here.

VARDHMAN ACRYLICS Share Price Performance

Over the last one year, VARDHMAN ACRYLICS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 1.0% over the year.

(To know more, check out historical annual results for VARDHMAN ACRYLICS and quarterly results for VARDHMAN ACRYLICS )