GREENPLY INDUSTRIES 2021-22 Annual Report Analysis

Tue, 6 Sep

GREENPLY 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.

GREENPLY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 34.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY22 as against 9.9% in FY21.
• Depreciation charges increased by 12.0% and finance costs decreased by 28.3% YoY, respectively.
• Other income grew by 18.0% YoY.
• Net profit for the year grew by 45.6% YoY.
• Net profit margins during the year grew from 5.4% in FY21 to 5.9% in FY22.

GREENPLY INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,653	15,628	34.1%
Other income	Rs m	84	99	18.0%
Total Revenues	Rs m	11,737	15,727	34.0%
Gross profit	Rs m	1,151	1,503	30.6%
Depreciation	Rs m	231	258	12.0%
Interest	Rs m	167	119	-28.3%
Profit before tax	Rs m	837	1,224	46.1%
Tax	Rs m	205	303	47.8%
Profit after tax	Rs m	633	921	45.6%
Gross profit margin	%	9.9	9.6
Effective tax rate	%	24.4	24.7
Net profit margin	%	5.4	5.9

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GREENPLY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 16.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 721 million during FY21, a growth of 98.5%.
• Current assets rose 1% and stood at Rs 5 billion, while fixed assets rose 64% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 27%.

GREENPLY INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,362	5,246	20.3
Current Liabilities	Rs m	3,923	4,588	16.9
Long-term Debt	Rs m	721	1,431	98.5
Total Liabilities	Rs m	9,087	11,515	26.7
Current assets	Rs m	5,419	5,492	1.3
Fixed Assets	Rs m	3,668	6,023	64.2
Total Assets	Rs m	9,087	11,515	26.7

GREENPLY INDUSTRIES Cash Flow Statement Analysis

• GREENPLY INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 916 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 3.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 804 million, an improvement of 187% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 419 million from the Rs 118 million net cash flows seen during FY21.

GREENPLY 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	2,278	916	-59.8%
Cash Flow from Investing Activities	Rs m	-1,247	-1,294	-
Cash Flow from Financing Activities	Rs m	-922	804	-
Net Cash Flow	Rs m	118	419	256.0%

Current Valuations for GREENPLY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 188.4, stands at 21.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 21.6 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	95.0	127.4
TTM Earnings per share	Rs	5.2	7.5
Diluted earnings per share	Rs	5.2	7.5
Price to Cash Flow	x	24.1	21.6
TTM P/E ratio	x	32.9	21.2
Price / Book Value ratio	x	3.9	4.9
Market Cap	Rs m	17,018	25,467
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for GREENPLY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 improved and stood at 11.3x during FY22, from 6.0x 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 17.6% during FY22, from 14.5% 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 improved and stood at 20.1% during FY22, from 19.8% 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 9.0% during FY22, from 8.8% 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	1.2
Debtors’ Days	Days	607	435
Interest coverage	x	6.0	11.3
Debt to equity ratio	x	0.2	0.3
Return on assets	%	8.8	9.0
Return on equity	%	14.5	17.6
Return on capital employed	%	19.8	20.1

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

GREENPLY INDUSTRIES Share Price Performance

Over the last one year, GREENPLY INDUSTRIES share price has moved up from Rs 175.5 to Rs 188.4, registering a gain of Rs 12.9 or around 7.4%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

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

Read: Latest Annual Report Analysis of GREENPLY INDUSTRIES