CHENNAI FERROUS IND. 2021-22 Annual Report Analysis

Tue, 14 Jun

CHENNAI FERROUS IND. 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.

CHENNAI FERROUS IND. Income Statement Analysis

• Operating income during the year rose 106.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 336.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.4% in FY22 as against 13.0% in FY21.
• Depreciation charges decreased by 0.1% increased by 0.0% YoY, respectively.
• Other income declined by 21.2% YoY.
• Net profit for the year grew by 400.1% YoY.
• Net profit margins during the year grew from 10.9% in FY21 to 26.4% in FY22.

CHENNAI FERROUS IND. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	464	959	106.5%
Other income	Rs m	1	1	-21.2%
Total Revenues	Rs m	465	960	106.2%
Gross profit	Rs m	60	263	336.0%
Depreciation	Rs m	11	11	-0.1%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	51	253	400.1%
Tax	Rs m	0	0	0.0%
Profit after tax	Rs m	51	253	400.1%
Gross profit margin	%	13.0	27.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	10.9	26.4

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CHENNAI FERROUS IND. Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 126 million as compared to Rs 511 million in FY21, thereby witnessing an decrease of -75.3%.
• Current assets fell 43% and stood at Rs 192 million, while fixed assets rose 204% and stood at Rs 380 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 572 million as against Rs 463 million during FY21, thereby witnessing a growth of 24%.

CHENNAI FERROUS IND. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-99	420	-523.3
Current Liabilities	Rs m	511	126	-75.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	463	572	23.6
Current assets	Rs m	338	192	-43.2
Fixed Assets	Rs m	125	380	203.9
Total Assets	Rs m	463	572	23.6

CHENNAI FERROUS IND. Cash Flow Statement Analysis

• CHENNAI FERROUS IND.'s cash flow from operating activities (CFO) during FY22 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 million from the Rs 2 million net cash flows seen during FY21.

CHENNAI FERROUS IND. 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	4	3	-26.5%
Cash Flow from Investing Activities	Rs m	-3	0	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	2	3	62.9%

Current Valuations for CHENNAI FERROUS IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 70.3, an improvement from the EPS of Rs 14.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 315.2, stands at 4.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 1.6 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	129.0	266.3
TTM Earnings per share	Rs	14.1	70.3
Diluted earnings per share	Rs	14.0	70.2
Price to Cash Flow	x	0.3	1.6
TTM P/E ratio	x	0.3	4.5
Price / Book Value ratio	x	-0.2	1.0
Market Cap	Rs m	17	435
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHENNAI FERROUS IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 25,304.0x during FY22, from 0.0x 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 60.3% during FY22, from -51.1% 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 60.3% during FY22, from -51.1% 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 improved and stood at 44.3% during FY22, from 10.9% 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	1.5
Debtors’ Days	Days	177,278,444	14,429,940
Interest coverage	x	0.0	25,304.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	44.3
Return on equity	%	-51.1	60.3
Return on capital employed	%	-51.1	60.3

To see how CHENNAI FERROUS IND. has performed over the last 5 years, please visit here.

CHENNAI FERROUS IND. Share Price Performance

Over the last one year, CHENNAI FERROUS IND. share price has moved up from Rs 6.1 to Rs 315.2, registering a gain of Rs 309.1 or around 5075.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 17,092.8 (up 0.4%). Over the last one year it has moved down from 19,420.9 to 17,092.8, a loss of 2,328 points (down 12.0%).

Overall, the S&P BSE SENSEX is up 1.0% over the year.

(To know more, check out historical annual results for CHENNAI FERROUS IND. and quarterly results for CHENNAI FERROUS IND.)