POLYLINK POL 2021-22 Annual Report Analysis

Tue, 14 Jun

POLYLINK POL 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.

POLYLINK POL Income Statement Analysis

• Operating income during the year rose 22.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY22 as against 5.0% in FY21.
• Depreciation charges increased by 8.1% and finance costs increased by 26.4% YoY, respectively.
• Other income declined by 16.1% YoY.
• Net profit for the year declined by 24.8% YoY.
• Net profit margins during the year declined from 3.2% in FY21 to 2.0% in FY22.

POLYLINK POL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	374	457	22.1%
Other income	Rs m	5	5	-16.1%
Total Revenues	Rs m	380	461	21.5%
Gross profit	Rs m	19	20	5.6%
Depreciation	Rs m	8	9	8.1%
Interest	Rs m	1	2	26.4%
Profit before tax	Rs m	15	14	-5.4%
Tax	Rs m	3	5	74.2%
Profit after tax	Rs m	12	9	-24.8%
Gross profit margin	%	5.0	4.4
Effective tax rate	%	19.6	36.1
Net profit margin	%	3.2	2.0

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POLYLINK POL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 47 million as compared to Rs 40 million in FY21, thereby witnessing an increase of 18.1%.
• Long-term debt down at Rs 3 million as compared to Rs 4 million during FY21, a fall of 38.9%.
• Current assets rose 15% and stood at Rs 145 million, while fixed assets fell 1% and stood at Rs 166 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 311 million as against Rs 294 million during FY21, thereby witnessing a growth of 6%.

POLYLINK POL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	246	255	3.7
Current Liabilities	Rs m	40	47	18.1
Long-term Debt	Rs m	4	3	-38.9
Total Liabilities	Rs m	294	311	5.7
Current assets	Rs m	126	145	14.8
Fixed Assets	Rs m	168	166	-1.1
Total Assets	Rs m	294	311	5.7

POLYLINK POL Cash Flow Statement Analysis

• POLYLINK POL's cash flow from operating activities (CFO) during FY22 stood at Rs 5 million, an improvement of 75.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 4 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -2 million net cash flows seen during FY21.

POLYLINK POL 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	3	5	75.4%
Cash Flow from Investing Activities	Rs m	-12	-9	-
Cash Flow from Financing Activities	Rs m	7	4	-49.8%
Net Cash Flow	Rs m	-2	0	-

Current Valuations for POLYLINK POL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 26.6, stands at 65.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 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	16.9	20.7
TTM Earnings per share	Rs	0.5	0.4
Diluted earnings per share	Rs	0.5	0.4
Price to Cash Flow	x	13.0	28.5
TTM P/E ratio	x	21.9	65.6
Price / Book Value ratio	x	1.0	2.0
Market Cap	Rs m	254	508
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for POLYLINK POL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY22, from 3.2x 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 10.2x during FY22, from 13.3x 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 3.5% during FY22, from 4.9% 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 6.0% during FY22, from 6.4% 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 3.4% during FY22, from 4.5% 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	3.2	3.1
Debtors’ Days	Days	729	742
Interest coverage	x	13.3	10.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	3.4
Return on equity	%	4.9	3.5
Return on capital employed	%	6.4	6.0

To see how POLYLINK POL has performed over the last 5 years, please visit here.

POLYLINK POL Share Price Performance

Over the last one year, POLYLINK POL share price has moved up from Rs 16.5 to Rs 26.6, registering a gain of Rs 10.1 or around 61.2%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for POLYLINK POL and quarterly results for POLYLINK POL)