INOX LEISURE 2021-22 Annual Report Analysis

Tue, 6 Sep

INOX LEISURE 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.

INOX LEISURE Income Statement Analysis

• Operating income during the year rose 545.6% 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 10.5% in FY22 as against 166.5% in FY21.
• Depreciation charges increased by 3.8% and finance costs increased by 2.7% YoY, respectively.
• Other income declined by 36.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 318.7% in FY21 to 35.0% in FY22.

INOX LEISURE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,059	6,839	545.6%
Other income	Rs m	2,643	1,668	-36.9%
Total Revenues	Rs m	3,702	8,508	129.8%
Gross profit	Rs m	-1,763	717	NA
Depreciation	Rs m	2,832	2,938	3.8%
Interest	Rs m	2,511	2,580	2.7%
Profit before tax	Rs m	-4,464	-3,133	NA
Tax	Rs m	-1,087	-739	NA
Profit after tax	Rs m	-3,377	-2,394	NA
Gross profit margin	%	-166.5	10.5
Effective tax rate	%	24.4	23.6
Net profit margin	%	-318.7	-35.0

Don't Miss: Key Information for Long-term Investors

INOX LEISURE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 7.3%.
• Long-term debt stood at Rs 694 million as compared to Rs 470 million during FY21, a growth of 47.6%.
• Current assets rose 105% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 33 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 36 billion as against Rs 35 billion during FY21, thereby witnessing a growth of 3%.

INOX LEISURE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,322	6,907	9.2
Current Liabilities	Rs m	3,640	3,904	7.3
Long-term Debt	Rs m	470	694	47.6
Total Liabilities	Rs m	35,002	36,222	3.5
Current assets	Rs m	1,420	2,907	104.8
Fixed Assets	Rs m	33,582	33,315	-0.8
Total Assets	Rs m	35,002	36,222	3.5

INOX LEISURE Cash Flow Statement Analysis

• INOX LEISURE's cash flow from operating activities (CFO) during FY22 stood at Rs 769 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 46.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 156 million from the Rs -325 million net cash flows seen during FY21.

INOX LEISURE 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	-1,308	769	-
Cash Flow from Investing Activities	Rs m	-1,216	-1,779	-
Cash Flow from Financing Activities	Rs m	2,199	1,166	-47.0%
Net Cash Flow	Rs m	-325	156	-

Current Valuations for INOX LEISURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -19.6, an improvement from the EPS of Rs -30.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 518.9, stands at -105.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 90.4 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	9.4	56.0
TTM Earnings per share	Rs	-30.0	-19.6
Diluted earnings per share	Rs	-27.6	-19.6
Price to Cash Flow	x	-63.9	90.4
TTM P/E ratio	x	-10.3	-105.7
Price / Book Value ratio	x	4.6	7.1
Market Cap	Rs m	29,063	49,213
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INOX LEISURE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY22, from 0.4x 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 -0.2x during FY22, from -0.8x 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 -34.7% during FY22, from -53.4% 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 -7.3% during FY22, from -28.7% 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 -2.5% 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	0.4	0.7
Debtors’ Days	Days	148	155
Interest coverage	x	-0.8	-0.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-2.5	0.5
Return on equity	%	-53.4	-34.7
Return on capital employed	%	-28.7	-7.3

To see how INOX LEISURE has performed over the last 5 years, please visit here.

INOX LEISURE Share Price Performance

Over the last one year, INOX LEISURE share price has moved up from Rs 305.0 to Rs 518.9, registering a gain of Rs 213.9 or around 70.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,100.2 (up 0.0%). Over the last one year it has moved down from 15,220.8 to 13,100.2, a loss of 2,121 points (down 13.9%).

Overall, the S&P BSE SENSEX is up 2.3% over the year.

(To know more, check out historical annual results for INOX LEISURE and quarterly results for INOX LEISURE)