ORIENT PRESS 2021-22 Annual Report Analysis

Mon, 7 Nov

ORIENT PRESS 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.

ORIENT PRESS Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 78.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.7% in FY22 as against 3.7% in FY21.
• Depreciation charges decreased by 21.7% and finance costs decreased by 3.0% YoY, respectively.
• Other income grew by 99.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 2.5% in FY21 to 2.3% in FY22.

ORIENT PRESS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,412	1,594	12.9%
Other income	Rs m	20	40	99.2%
Total Revenues	Rs m	1,433	1,634	14.1%
Gross profit	Rs m	52	11	-78.5%
Depreciation	Rs m	57	44	-21.7%
Interest	Rs m	65	63	-3.0%
Profit before tax	Rs m	-49	-56	NA
Tax	Rs m	-14	-20	NA
Profit after tax	Rs m	-35	-36	NA
Gross profit margin	%	3.7	0.7
Effective tax rate	%	29.2	35.3
Net profit margin	%	-2.5	-2.3

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ORIENT PRESS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 974 million as compared to Rs 927 million in FY21, thereby witnessing an increase of 5.1%.
• Long-term debt down at Rs 59 million as compared to Rs 68 million during FY21, a fall of 12.9%.
• Current assets rose 3% and stood at Rs 1 billion, while fixed assets fell 9% and stood at Rs 623 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a fall of 1%.

ORIENT PRESS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	759	725	-4.5
Current Liabilities	Rs m	927	974	5.1
Long-term Debt	Rs m	68	59	-12.9
Total Liabilities	Rs m	1,834	1,809	-1.4
Current assets	Rs m	1,146	1,186	3.5
Fixed Assets	Rs m	687	623	-9.4
Total Assets	Rs m	1,834	1,809	-1.4

ORIENT PRESS Cash Flow Statement Analysis

• ORIENT PRESS's cash flow from operating activities (CFO) during FY22 stood at Rs -31 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 60 million, an improvement of 376.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -31 million, an improvement of 47% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs 2 million net cash flows seen during FY21.

ORIENT PRESS 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	47	-31	-
Cash Flow from Investing Activities	Rs m	13	60	376.2%
Cash Flow from Financing Activities	Rs m	-58	-31	-
Net Cash Flow	Rs m	2	-1	-

Current Valuations for ORIENT PRESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.6, an decline from the EPS of Rs -3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 65.6, stands at -29.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 108.2 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	141.2	159.4
TTM Earnings per share	Rs	-3.5	-3.6
Diluted earnings per share	Rs	-3.5	-3.6
Price to Cash Flow	x	38.0	108.2
TTM P/E ratio	x	-23.8	-29.2
Price / Book Value ratio	x	1.2	1.2
Market Cap	Rs m	891	900
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ORIENT PRESS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 deteriorated and stood at 0.1x during FY22, from 0.2x 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 declined and down at -5.0% during FY22, from -4.6% 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 0.9% during FY22, from 1.9% 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 1.5% during FY22, from 1.6% 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	1.2
Debtors’ Days	Days	972	919
Interest coverage	x	0.2	0.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	1.6	1.5
Return on equity	%	-4.6	-5.0
Return on capital employed	%	1.9	0.9

To see how ORIENT PRESS has performed over the last 5 years, please visit here.

ORIENT PRESS Share Price Performance

Over the last one year, ORIENT PRESS share price has moved down from Rs 71.3 to Rs 65.6, registering a loss of Rs 5.7 or around 8.0%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for ORIENT PRESS and quarterly results for ORIENT PRESS)