INFLAME APPLIANCES 2021-22 Annual Report Analysis

Tue, 23 Aug

INFLAME APPLIANCES 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.

INFLAME APPLIANCES Income Statement Analysis

• Operating income during the year rose 99.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.4% in FY22 as against 9.6% in FY21.
• Depreciation charges increased by 1.3% and finance costs increased by 70.6% YoY, respectively.
• Other income declined by 57.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 16.9% in FY21 to 4.2% in FY22.

INFLAME APPLIANCES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	199	396	99.4%
Other income	Rs m	2	1	-57.1%
Total Revenues	Rs m	201	397	97.5%
Gross profit	Rs m	-19	13	NA
Depreciation	Rs m	18	18	1.3%
Interest	Rs m	11	18	70.6%
Profit before tax	Rs m	-45	-22	NA
Tax	Rs m	-12	-6	NA
Profit after tax	Rs m	-34	-16	NA
Gross profit margin	%	-9.6	3.4
Effective tax rate	%	25.7	25.3
Net profit margin	%	-16.9	-4.2

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INFLAME APPLIANCES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 207 million as compared to Rs 220 million in FY21, thereby witnessing an decrease of -5.9%.
• Long-term debt down at Rs 38 million as compared to Rs 89 million during FY21, a fall of 57.3%.
• Current assets rose 0% and stood at Rs 239 million, while fixed assets rose 1% and stood at Rs 118 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 359 million as against Rs 359 million during FY21, thereby witnessing a fall of 0%.

INFLAME APPLIANCES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	42	142	237.6
Current Liabilities	Rs m	220	207	-5.9
Long-term Debt	Rs m	89	38	-57.3
Total Liabilities	Rs m	359	359	0.0
Current assets	Rs m	239	239	0.1
Fixed Assets	Rs m	117	118	0.9
Total Assets	Rs m	359	359	0.0

INFLAME APPLIANCES Cash Flow Statement Analysis

• INFLAME APPLIANCES's cash flow from operating activities (CFO) during FY22 stood at Rs -48 million, an improvement of 73.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 54 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.

INFLAME APPLIANCES 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	-28	-48	-
Cash Flow from Investing Activities	Rs m	-28	-6	-
Cash Flow from Financing Activities	Rs m	56	54	-4.7%
Net Cash Flow	Rs m	1	-1	-

Current Valuations for INFLAME APPLIANCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.5, an improvement from the EPS of Rs -5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 449.0, stands at -199.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.2 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 1,363.1 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	33.1	59.6
TTM Earnings per share	Rs	-5.6	-2.5
Diluted earnings per share	Rs	-4.6	-2.3
Price to Cash Flow	x	-74.1	1,363.1
TTM P/E ratio	x	-34.8	-199.3
Price / Book Value ratio	x	19.0	15.3
Market Cap	Rs m	798	2,174
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INFLAME APPLIANCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY22, from 1.1x 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 improved and stood at -0.2x during FY22, from -3.2x 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 -11.6% during FY22, from -80.1% 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 -2.1% during FY22, from -26.3% 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 improved and stood at 0.5% during FY22, from -6.4% 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	1.1	1.2
Debtors’ Days	Days	237,539	108,740
Interest coverage	x	-3.2	-0.2
Debt to equity ratio	x	2.1	0.3
Return on assets	%	-6.4	0.5
Return on equity	%	-80.1	-11.6
Return on capital employed	%	-26.3	-2.1

To see how INFLAME APPLIANCES has performed over the last 5 years, please visit here.

INFLAME APPLIANCES Share Price Performance

Over the last one year, INFLAME APPLIANCES share price has moved up from Rs 182.8 to Rs 449.0, registering a gain of Rs 266.2 or around 145.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 41,070.7 (up 1.5%). Over the last one year it has moved up from 36,124.8 to 41,070.7, a gain of 4,946 points (up 13.7%).

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for INFLAME APPLIANCES and quarterly results for INFLAME APPLIANCES)