VINATI ORGANICS 2021-22 Annual Report Analysis

Wed, 24 Aug

VINATI ORGANICS 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.

VINATI ORGANICS Income Statement Analysis

• Operating income during the year rose 69.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.0% in FY22 as against 37.0% in FY21.
• Depreciation charges increased by 6.0% and finance costs increased by 74.3% YoY, respectively.
• Other income grew by 135.7% YoY.
• Net profit for the year grew by 28.7% YoY.
• Net profit margins during the year declined from 28.2% in FY21 to 21.5% in FY22.

VINATI ORGANICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,543	16,155	69.3%
Other income	Rs m	258	609	135.7%
Total Revenues	Rs m	9,801	16,764	71.0%
Gross profit	Rs m	3,533	4,355	23.3%
Depreciation	Rs m	429	455	6.0%
Interest	Rs m	9	17	74.3%
Profit before tax	Rs m	3,352	4,492	34.0%
Tax	Rs m	659	1,026	55.7%
Profit after tax	Rs m	2,693	3,466	28.7%
Gross profit margin	%	37.0	27.0
Effective tax rate	%	19.7	22.8
Net profit margin	%	28.2	21.5

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VINATI ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 55.3%.
• Current assets rose 18% and stood at Rs 8 billion, while fixed assets rose 22% and stood at Rs 13 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 21 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 21%.

VINATI ORGANICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	15,434	18,280	18.4
Current Liabilities	Rs m	1,077	1,673	55.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,338	20,898	20.5
Current assets	Rs m	6,551	7,760	18.4
Fixed Assets	Rs m	10,786	13,138	21.8
Total Assets	Rs m	17,338	20,898	20.5

VINATI ORGANICS Cash Flow Statement Analysis

• VINATI ORGANICS's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 28.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -465 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs 176 million net cash flows seen during FY21.

VINATI ORGANICS 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	2,190	1,268	-42.1%
Cash Flow from Investing Activities	Rs m	-1,983	-2,554	-
Cash Flow from Financing Activities	Rs m	-31	-465	-
Net Cash Flow	Rs m	176	-1,751	-

Current Valuations for VINATI ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.7, an improvement from the EPS of Rs 26.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,217.9, stands at 62.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.5 times, while the price to sales ratio stands at 14.1 times.
• The company's price to cash flow (P/CF) ratio stood at 46.6 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	92.8	157.2
TTM Earnings per share	Rs	26.2	33.7
Diluted earnings per share	Rs	26.2	33.7
Price to Cash Flow	x	46.1	46.6
TTM P/E ratio	x	53.4	62.1
Price / Book Value ratio	x	7.6	10.0
Market Cap	Rs m	117,007	182,818
Dividends per share (Unadj.)	Rs	6.0	6.5

Ratio Analysis for VINATI ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.6x during FY22, from 6.1x 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 deteriorated and stood at 272.9x during FY22, from 354.6x 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 19.0% during FY22, from 17.4% 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 24.7% during FY22, from 21.8% 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 16.7% during FY22, from 15.6% 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	6.1	4.6
Debtors’ Days	Days	1,060	1,036
Interest coverage	x	354.6	272.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.6	16.7
Return on equity	%	17.4	19.0
Return on capital employed	%	21.8	24.7

To see how VINATI ORGANICS has performed over the last 5 years, please visit here.

VINATI ORGANICS Share Price Performance

Over the last one year, VINATI ORGANICS share price has moved up from Rs 1,785.3 to Rs 2,217.9, registering a gain of Rs 432.6 or around 24.2%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

(To know more, check out historical annual results for VINATI ORGANICS and quarterly results for VINATI ORGANICS)

Read: Latest Annual Report Analysis of VINATI ORGANICS