MITSU CHEM PLAST 2021-22 Annual Report Analysis

Wed, 20 Jul

MITSU CHEM PLAST 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.

MITSU CHEM PLAST Income Statement Analysis

• Operating income during the year rose 44.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.0% in FY22 as against 12.9% in FY21.
• Depreciation charges increased by 9.1% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 3.1% YoY.
• Net profit for the year grew by 18.7% YoY.
• Net profit margins during the year declined from 5.4% in FY21 to 4.5% in FY22.

MITSU CHEM PLAST Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,783	2,577	44.5%
Other income	Rs m	11	11	3.1%
Total Revenues	Rs m	1,794	2,589	44.3%
Gross profit	Rs m	231	257	11.2%
Depreciation	Rs m	44	48	9.1%
Interest	Rs m	60	56	-6.5%
Profit before tax	Rs m	138	164	18.9%
Tax	Rs m	41	49	19.4%
Profit after tax	Rs m	97	115	18.7%
Gross profit margin	%	12.9	10.0
Effective tax rate	%	29.8	29.9
Net profit margin	%	5.4	4.5

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

MITSU CHEM PLAST Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 624 million as compared to Rs 504 million in FY21, thereby witnessing an increase of 23.7%.
• Long-term debt down at Rs 286 million as compared to Rs 320 million during FY21, a fall of 10.7%.
• Current assets rose 33% and stood at Rs 825 million, while fixed assets rose 1% and stood at Rs 655 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 17%.

MITSU CHEM PLAST Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	396	509	28.4
Current Liabilities	Rs m	504	624	23.7
Long-term Debt	Rs m	320	286	-10.7
Total Liabilities	Rs m	1,270	1,480	16.5
Current assets	Rs m	622	825	32.7
Fixed Assets	Rs m	648	655	1.0
Total Assets	Rs m	1,270	1,480	16.5

MITSU CHEM PLAST Cash Flow Statement Analysis

• MITSU CHEM PLAST's cash flow from operating activities (CFO) during FY22 stood at Rs 82 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -49 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -19 million, an improvement of 65% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 14 million from the Rs 0 million net cash flows seen during FY21.

MITSU CHEM PLAST 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	132	82	-37.9%
Cash Flow from Investing Activities	Rs m	-78	-49	-
Cash Flow from Financing Activities	Rs m	-54	-19	-
Net Cash Flow	Rs m	0	14	-46,766.7%

Current Valuations for MITSU CHEM PLAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an improvement from the EPS of Rs 8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 272.5, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.9 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	147.7	213.5
TTM Earnings per share	Rs	8.0	9.5
Diluted earnings per share	Rs	8.0	9.5
Price to Cash Flow	x	9.4	17.9
TTM P/E ratio	x	13.7	28.6
Price / Book Value ratio	x	2.9	5.7
Market Cap	Rs m	1,153	2,920
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for MITSU CHEM PLAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.2x 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 improved and stood at 3.9x during FY22, from 3.3x 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 22.6% during FY22, from 24.4% 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 27.7% during FY22, from 27.6% 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 11.6% during FY22, from 12.3% 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	1.2	1.3
Debtors’ Days	Days	597	587
Interest coverage	x	3.3	3.9
Debt to equity ratio	x	0.8	0.6
Return on assets	%	12.3	11.6
Return on equity	%	24.4	22.6
Return on capital employed	%	27.6	27.7

To see how MITSU CHEM PLAST has performed over the last 5 years, please visit here.

MITSU CHEM PLAST Share Price Performance

Over the last one year, MITSU CHEM PLAST share price has moved up from Rs 246.6 to Rs 272.5, registering a gain of Rs 26.0 or around 10.5%.

Overall, the S&P BSE SENSEX is up 5.7% over the year.

(To know more, check out historical annual results for MITSU CHEM PLAST and quarterly results for MITSU CHEM PLAST)