EP BIOCOMPOSITES 2021-22 Annual Report Analysis

Fri, 7 Oct

EP BIOCOMPOSITES 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.

EP BIOCOMPOSITES Income Statement Analysis

• Operating income during the year rose 173.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 205.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in FY22 as against 15.6% in FY21.
• Depreciation charges increased by 0.0% and finance costs increased by 19100.0% YoY, respectively.
• Other income grew by 300.0% YoY.
• Net profit for the year grew by 126.0% YoY.
• Net profit margins during the year declined from 12.1% in FY21 to 10.0% in FY22.

EP BIOCOMPOSITES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	29	81	173.4%
Other income	Rs m	0	0	300.0%
Total Revenues	Rs m	30	81	173.6%
Gross profit	Rs m	5	14	205.6%
Depreciation	Rs m	0	1	0.0%
Interest	Rs m	0	2	19,100.0%
Profit before tax	Rs m	5	12	151.3%
Tax	Rs m	1	4	236.8%
Profit after tax	Rs m	4	8	126.0%
Gross profit margin	%	15.6	17.5
Effective tax rate	%	22.8	30.6
Net profit margin	%	12.1	10.0

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EP BIOCOMPOSITES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 51 million as compared to Rs 9 million in FY21, thereby witnessing an increase of 442.3%.
• Long-term debt stood at Rs 22 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 559% and stood at Rs 86 million, while fixed assets rose 2,943% and stood at Rs 7 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 93 million as against Rs 13 million during FY21, thereby witnessing a growth of 601%.

EP BIOCOMPOSITES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4	20	416.3
Current Liabilities	Rs m	9	51	442.3
Long-term Debt	Rs m	0	22	0.0
Total Liabilities	Rs m	13	93	600.7
Current assets	Rs m	13	86	559.3
Fixed Assets	Rs m	0	7	2,943.5
Total Assets	Rs m	13	93	600.7

EP BIOCOMPOSITES Cash Flow Statement Analysis

• EP BIOCOMPOSITES's cash flow from operating activities (CFO) during FY22 stood at Rs -43 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 48 million, an improvement of 158,667% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY21.

EP BIOCOMPOSITES 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	0	-43	-
Cash Flow from Investing Activities	Rs m	0	-5	-
Cash Flow from Financing Activities	Rs m	0	48	-158,666.7%
Net Cash Flow	Rs m	0	0	-75.0%

Current Valuations for EP BIOCOMPOSITES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an decline from the EPS of Rs 71.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.0, stands at 58.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.5 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 53.6 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	589.6	68.3
TTM Earnings per share	Rs	71.6	6.9
Diluted earnings per share	Rs	2.1	4.8
Price to Cash Flow	x	0.0	53.6
TTM P/E ratio	x	0.0	58.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	469
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EP BIOCOMPOSITES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY22, from 1.4x 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 7.1x during FY22, from 465.0x 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 declined and down at 40.5% during FY22, from 92.5% 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 32.5% during FY22, from 120.3% 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 10.8% during FY22, from 27.1% 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	1.4	1.7
Debtors’ Days	Days	801	3,214
Interest coverage	x	465.0	7.1
Debt to equity ratio	x	0.0	1.1
Return on assets	%	27.1	10.8
Return on equity	%	92.5	40.5
Return on capital employed	%	120.3	32.5

To see how EP BIOCOMPOSITES has performed over the last 5 years, please visit here.

EP BIOCOMPOSITES Share Price Performance

Over the last one year, EP BIOCOMPOSITES share price has moved up from Rs 0.0 to Rs 279.0, registering a gain of Rs 279.0 or around 0.0%.

Overall, the S&P BSE SENSEX is down 2.0% over the year.

(To know more, check out historical annual results for EP BIOCOMPOSITES and quarterly results for EP BIOCOMPOSITES)