ZUARI AGRO 2021-22 Annual Report Analysis

Sat, 20 Aug

ZUARI AGRO 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.

ZUARI AGRO Income Statement Analysis

• Operating income during the year rose 49.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY22 as against 8.6% in FY21.
• Depreciation charges decreased by 0.7% and finance costs decreased by 13.9% YoY, respectively.
• Other income declined by 3.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.6% in FY21 to 0.2% in FY22.

ZUARI AGRO Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	24,037	35,898	49.3%
Other income	Rs m	625	605	-3.1%
Total Revenues	Rs m	24,662	36,503	48.0%
Gross profit	Rs m	2,058	2,332	13.3%
Depreciation	Rs m	680	675	-0.7%
Interest	Rs m	2,004	1,726	-13.9%
Profit before tax	Rs m	-2	536	NA
Tax	Rs m	385	473	22.9%
Profit after tax	Rs m	-387	63	NA
Gross profit margin	%	8.6	6.5
Effective tax rate	%	-18,402.9	88.3
Net profit margin	%	-1.6	0.2

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ZUARI AGRO Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 48 billion as compared to Rs 41 billion in FY21, thereby witnessing an increase of 16.7%.
• Long-term debt down at Rs 6 billion as compared to Rs 6 billion during FY21, a fall of 3.5%.
• Current assets rose 21% and stood at Rs 33 billion, while fixed assets rose 12% and stood at Rs 29 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 62 billion as against Rs 53 billion during FY21, thereby witnessing a growth of 17%.

ZUARI AGRO Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,962	3,670	87.1
Current Liabilities	Rs m	40,916	47,756	16.7
Long-term Debt	Rs m	5,944	5,735	-3.5
Total Liabilities	Rs m	53,045	61,925	16.7
Current assets	Rs m	26,992	32,759	21.4
Fixed Assets	Rs m	26,053	29,166	11.9
Total Assets	Rs m	53,045	61,925	16.7

ZUARI AGRO Cash Flow Statement Analysis

• ZUARI AGRO's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY21.

ZUARI AGRO 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	15,211	5,714	-62.4%
Cash Flow from Investing Activities	Rs m	-1,708	-1,372	-
Cash Flow from Financing Activities	Rs m	-11,880	-2,960	-
Net Cash Flow	Rs m	1,623	1,382	-14.8%

Current Valuations for ZUARI AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an improvement from the EPS of Rs -9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 178.0, stands at 0.8 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 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	571.5	853.5
TTM Earnings per share	Rs	-9.2	1.5
Diluted earnings per share	Rs	-9.2	1.5
Price to Cash Flow	x	13.0	6.9
TTM P/E ratio	x	-9.9	0.8
Price / Book Value ratio	x	2.0	1.4
Market Cap	Rs m	3,888	5,093
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZUARI AGRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY22, from 0.7x 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 1.3x during FY22, from 1.0x 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 1.7% during FY22, from -19.7% 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 24.1% during FY22, from 25.3% 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 2.9% during FY22, from 3.0% 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	0.7	0.7
Debtors’ Days	Days	689	644
Interest coverage	x	1.0	1.3
Debt to equity ratio	x	3.0	1.6
Return on assets	%	3.0	2.9
Return on equity	%	-19.7	1.7
Return on capital employed	%	25.3	24.1

To see how ZUARI AGRO has performed over the last 5 years, please visit here.

ZUARI AGRO Share Price Performance

Over the last one year, ZUARI AGRO share price has moved up from Rs 120.3 to Rs 178.0, registering a gain of Rs 57.7 or around 48.0%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for ZUARI AGRO and quarterly results for ZUARI AGRO)

Read: Latest Annual Report Analysis of ZUARI AGRO