BIRLA TYRES 2021-22 Annual Report Analysis

Tue, 31 May

BIRLA TYRES 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.

BIRLA TYRES Income Statement Analysis

• Operating income during the year fell 96.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 297.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 8847.2% in FY22 as against 87.8% in FY21.
• Depreciation charges decreased by 11.1% and finance costs increased by 8.5% YoY, respectively.
• Other income grew by 2.2% YoY.
• Net profit for the year grew by 128.0% YoY.
• Net profit margins during the year declined from 209.4% in FY21 to 12106.2% in FY22.

BIRLA TYRES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,374	54	-96.1%
Other income	Rs m	286	292	2.2%
Total Revenues	Rs m	1,660	347	-79.1%
Gross profit	Rs m	-1,206	-4,792	297.3%
Depreciation	Rs m	333	296	-11.1%
Interest	Rs m	1,624	1,762	8.5%
Profit before tax	Rs m	-2,876	-6,557	128.0%
Tax	Rs m	0	0	0.0%
Profit after tax	Rs m	-2,876	-6,557	128.0%
Gross profit margin	%	-87.8	-8,847.2
Effective tax rate	%	0.0	0.0
Net profit margin	%	-209.4	-12,106.2

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BIRLA TYRES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 22 billion as compared to Rs 20 billion in FY21, thereby witnessing an increase of 8.4%.
• Current assets fell 13% and stood at Rs 2 billion, while fixed assets fell 35% and stood at Rs 9 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 15 billion during FY21, thereby witnessing a fall of 33%.

BIRLA TYRES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-5,668	-12,214	115.5
Current Liabilities	Rs m	20,397	22,107	8.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,973	10,077	-32.7
Current assets	Rs m	1,744	1,514	-13.2
Fixed Assets	Rs m	13,229	8,563	-35.3
Total Assets	Rs m	14,973	10,077	-32.7

BIRLA TYRES Cash Flow Statement Analysis

• BIRLA TYRES's cash flow from operating activities (CFO) during FY22 stood at Rs -148 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 10 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 192 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY21.

BIRLA TYRES 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	-266	-148	-
Cash Flow from Investing Activities	Rs m	155	10	-93.7%
Cash Flow from Financing Activities	Rs m	299	192	-35.9%
Net Cash Flow	Rs m	-1,706	-1,812	-

Current Valuations for BIRLA TYRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -46.0, an decline from the EPS of Rs -20.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.4, stands at -0.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 19.5 times.
• The company's price to cash flow (P/CF) ratio stood at -0.6 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	9.6	0.4
TTM Earnings per share	Rs	-20.2	-46.0
Diluted earnings per share	Rs	-20.2	-46.0
Price to Cash Flow	x	-1.3	-0.6
TTM P/E ratio	x	-1.1	-0.2
Price / Book Value ratio	x	-0.8	-0.3
Market Cap	Rs m	4,363	3,700
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BIRLA TYRES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY22, from 0.1x 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 -2.7x during FY22, from -0.8x 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 improved and stood at 53.7% during FY22, from 50.7% 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 improved and stood at 39.3% during FY22, from 22.1% 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 -47.6% during FY22, from -8.4% 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	0.1	0.1
Debtors’ Days	Days	2,824	69,657
Interest coverage	x	-0.8	-2.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-8.4	-47.6
Return on equity	%	50.7	53.7
Return on capital employed	%	22.1	39.3

To see how BIRLA TYRES has performed over the last 5 years, please visit here.

BIRLA TYRES Share Price Performance

Over the last one year, BIRLA TYRES share price has moved down from Rs 27.5 to Rs 7.4, registering a loss of Rs 20.1 or around 73.0%.

Overall, the S&P BSE SENSEX is up 9.3% over the year.

(To know more, check out historical annual results for BIRLA TYRES and quarterly results for BIRLA TYRES)