VISAKA INDUSTRIES 2021-22 Annual Report Analysis

Wed, 8 Jun

VISAKA 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.

VISAKA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 23.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY22 as against 16.8% in FY21.
• Depreciation charges decreased by 5.9% and finance costs decreased by 9.8% YoY, respectively.
• Other income grew by 17.2% YoY.
• Net profit for the year grew by 6.9% YoY.
• Net profit margins during the year declined from 9.7% in FY21 to 8.4% in FY22.

VISAKA INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,465	14,158	23.5%
Other income	Rs m	91	107	17.2%
Total Revenues	Rs m	11,556	14,265	23.4%
Gross profit	Rs m	1,930	1,991	3.2%
Depreciation	Rs m	400	376	-5.9%
Interest	Rs m	128	116	-9.8%
Profit before tax	Rs m	1,493	1,606	7.6%
Tax	Rs m	386	423	9.5%
Profit after tax	Rs m	1,106	1,183	6.9%
Gross profit margin	%	16.8	14.1
Effective tax rate	%	25.9	26.3
Net profit margin	%	9.7	8.4

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VISAKA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 32.0%.
• Long-term debt down at Rs 490 million as compared to Rs 765 million during FY21, a fall of 35.9%.
• Current assets rose 9% and stood at Rs 6 billion, while fixed assets rose 25% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 10 billion during FY21, thereby witnessing a growth of 17%.

VISAKA INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,221	7,321	17.7
Current Liabilities	Rs m	2,705	3,570	32.0
Long-term Debt	Rs m	765	490	-35.9
Total Liabilities	Rs m	9,867	11,511	16.7
Current assets	Rs m	5,413	5,921	9.4
Fixed Assets	Rs m	4,454	5,590	25.5
Total Assets	Rs m	9,867	11,511	16.7

VISAKA INDUSTRIES Cash Flow Statement Analysis

• VISAKA INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 542 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 218.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 300 million, an improvement of 121% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -868 million from the Rs 948 million net cash flows seen during FY21.

VISAKA 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	2,943	542	-81.6%
Cash Flow from Investing Activities	Rs m	-537	-1,710	-
Cash Flow from Financing Activities	Rs m	-1,458	300	-
Net Cash Flow	Rs m	948	-868	-

Current Valuations for VISAKA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 68.5, an improvement from the EPS of Rs 67.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 531.3, stands at 7.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	695.7	819.3
TTM Earnings per share	Rs	67.1	68.5
Diluted earnings per share	Rs	64.0	68.5
Price to Cash Flow	x	5.4	7.4
TTM P/E ratio	x	7.4	7.8
Price / Book Value ratio	x	0.9	1.6
Market Cap	Rs m	5,434	11,514
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for VISAKA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 2.0x 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 14.9x during FY22, from 12.6x 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 declined and down at 16.2% during FY22, from 17.8% 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 22.0% during FY22, from 23.2% 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 11.3% during FY22, from 12.5% 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	2.0	1.7
Debtors’ Days	Days	335	344
Interest coverage	x	12.6	14.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.5	11.3
Return on equity	%	17.8	16.2
Return on capital employed	%	23.2	22.0

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

VISAKA INDUSTRIES Share Price Performance

Over the last one year, VISAKA INDUSTRIES share price has moved down from Rs 654.2 to Rs 531.3, registering a loss of Rs 122.9 or around 18.8%.

Overall, the S&P BSE SENSEX is up 5.5% over the year.

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

Read: Latest Annual Report Analysis of VISAKA INDUSTRIES