NATIONAL PLASTIC 2021-22 Annual Report Analysis

Wed, 7 Sep

NATIONAL PLASTIC 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.

NATIONAL PLASTIC Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY22 as against 8.5% in FY21.
• Depreciation charges increased by 0.1% and finance costs increased by 0.3% YoY, respectively.
• Other income declined by 77.3% YoY.
• Net profit for the year grew by 18.9% YoY.
• Net profit margins during the year grew from 3.7% in FY21 to 4.1% in FY22.

NATIONAL PLASTIC Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	649	697	7.4%
Other income	Rs m	14	3	-77.3%
Total Revenues	Rs m	662	700	5.7%
Gross profit	Rs m	55	74	35.0%
Depreciation	Rs m	26	26	0.1%
Interest	Rs m	28	28	0.3%
Profit before tax	Rs m	15	23	58.4%
Tax	Rs m	-9	-5	NA
Profit after tax	Rs m	24	28	18.9%
Gross profit margin	%	8.5	10.6
Effective tax rate	%	-62.5	-21.9
Net profit margin	%	3.7	4.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

NATIONAL PLASTIC Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 400 million as compared to Rs 428 million in FY21, thereby witnessing an decrease of -6.7%.
• Long-term debt stood at Rs 141 million as compared to Rs 119 million during FY21, a growth of 18.3%.
• Current assets rose 5% and stood at Rs 562 million, while fixed assets fell 6% and stood at Rs 379 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 941 million as against Rs 940 million during FY21, thereby witnessing a growth of 0%.

NATIONAL PLASTIC Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	298	319	7.0
Current Liabilities	Rs m	428	400	-6.7
Long-term Debt	Rs m	119	141	18.3
Total Liabilities	Rs m	940	941	0.1
Current assets	Rs m	537	562	4.7
Fixed Assets	Rs m	403	379	-6.0
Total Assets	Rs m	940	941	0.1

NATIONAL PLASTIC Cash Flow Statement Analysis

• NATIONAL PLASTIC's cash flow from operating activities (CFO) during FY22 stood at Rs 6 million 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 -22 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -22 million from the Rs 21 million net cash flows seen during FY21.

NATIONAL PLASTIC 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	100	6	-94.5%
Cash Flow from Investing Activities	Rs m	-41	-6	-
Cash Flow from Financing Activities	Rs m	-38	-22	-
Net Cash Flow	Rs m	21	-22	-

Current Valuations for NATIONAL PLASTIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 46.0, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.8 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	71.1	76.3
TTM Earnings per share	Rs	2.6	3.1
Diluted earnings per share	Rs	2.6	3.1
Price to Cash Flow	x	4.5	6.8
TTM P/E ratio	x	9.4	11.3
Price / Book Value ratio	x	0.7	1.2
Market Cap	Rs m	204	371
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NATIONAL PLASTIC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.3x 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 1.8x during FY22, from 1.5x 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 8.9% during FY22, from 8.0% 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 11.1% during FY22, from 10.2% 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 6.0% during FY22, from 5.5% 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	1.3	1.4
Debtors’ Days	Days	1,175	1,082
Interest coverage	x	1.5	1.8
Debt to equity ratio	x	0.4	0.4
Return on assets	%	5.5	6.0
Return on equity	%	8.0	8.9
Return on capital employed	%	10.2	11.1

To see how NATIONAL PLASTIC has performed over the last 5 years, please visit here.

NATIONAL PLASTIC Share Price Performance

Over the last one year, NATIONAL PLASTIC share price has moved up from Rs 36.9 to Rs 46.0, registering a gain of Rs 9.1 or around 24.5%.

Overall, the S&P BSE SENSEX is up 1.3% over the year.

(To know more, check out historical annual results for NATIONAL PLASTIC and quarterly results for NATIONAL PLASTIC)