GARWARE SYN. 2021-22 Annual Report Analysis

Tue, 20 Sep

GARWARE SYN. 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.

GARWARE SYN. Income Statement Analysis

• Operating income during the year rose 53.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY22 as against 12.8% in FY21.
• Depreciation charges increased by 1157.1% and finance costs increased by 37.1% YoY, respectively.
• Other income grew by 33300.0% YoY.
• Net profit for the year declined by 60.5% YoY.
• Net profit margins during the year declined from 7.1% in FY21 to 1.8% in FY22.

GARWARE SYN. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	83	127	53.7%
Other income	Rs m	0	3	33,300.0%
Total Revenues	Rs m	83	130	57.7%
Gross profit	Rs m	11	11	1.7%
Depreciation	Rs m	0	3	1,157.1%
Interest	Rs m	4	6	37.1%
Profit before tax	Rs m	6	6	-8.5%
Tax	Rs m	0	3	1,157.7%
Profit after tax	Rs m	6	2	-60.5%
Gross profit margin	%	12.8	8.5
Effective tax rate	%	4.3	58.7
Net profit margin	%	7.1	1.8

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GARWARE SYN. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 158 million as compared to Rs 156 million in FY21, thereby witnessing an increase of 1.6%.
• Long-term debt stood at Rs 3 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 11% and stood at Rs 29 million, while fixed assets rose 29% and stood at Rs 141 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 169 million as against Rs 135 million during FY21, thereby witnessing a growth of 25%.

GARWARE SYN. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-22	-26	NA
Current Liabilities	Rs m	156	158	1.6
Long-term Debt	Rs m	0	3	0.0
Total Liabilities	Rs m	135	169	25.4
Current assets	Rs m	26	29	11.0
Fixed Assets	Rs m	109	141	28.8
Total Assets	Rs m	135	169	25.4

GARWARE SYN. Cash Flow Statement Analysis

• GARWARE SYN.'s cash flow from operating activities (CFO) during FY22 stood at Rs 13 million, an improvement of 224.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 million, an improvement of 5,681.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -6 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 million from the Rs -1 million net cash flows seen during FY21.

GARWARE SYN. 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	13	224.4%
Cash Flow from Investing Activities	Rs m	0	-6	-
Cash Flow from Financing Activities	Rs m	-5	-6	-
Net Cash Flow	Rs m	-1	1	-

Current Valuations for GARWARE SYN.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12.5, stands at 47.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -2.8 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	14.2	21.9
TTM Earnings per share	Rs	1.0	0.4
Diluted earnings per share	Rs	1.0	0.4
Price to Cash Flow	x	5.1	16.6
TTM P/E ratio	x	5.2	47.8
Price / Book Value ratio	x	-0.8	-3.2
Market Cap	Rs m	18	82
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GARWARE SYN.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY22, from 0.2x 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 1.9x during FY22, from 2.4x 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 -9.0% during FY22, from -27.1% 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 declined and down at -51.3% during FY22, from -48.3% 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 4.9% during FY22, from 7.5% 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	0.2	0.2
Debtors’ Days	Days	648	484
Interest coverage	x	2.4	1.9
Debt to equity ratio	x	0.0	-0.1
Return on assets	%	7.5	4.9
Return on equity	%	-27.1	-9.0
Return on capital employed	%	-48.3	-51.3

To see how GARWARE SYN. has performed over the last 5 years, please visit here.

GARWARE SYN. Share Price Performance

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(To know more, check out historical annual results for GARWARE SYN. and quarterly results for GARWARE SYN.)