NAVIN FLUORINE 2021-22 Annual Report Analysis

Tue, 12 Jul

NAVIN FLUORINE 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.

NAVIN FLUORINE Income Statement Analysis

• Operating income during the year rose 23.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.4% in FY22 as against 27.5% in FY21.
• Depreciation charges increased by 8.4% and finance costs increased by 3.3% YoY, respectively.
• Other income declined by 50.4% YoY.
• Net profit for the year grew by 6.5% YoY.
• Net profit margins during the year declined from 20.9% in FY21 to 18.1% in FY22.

NAVIN FLUORINE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,794	14,534	23.2%
Other income	Rs m	790	392	-50.4%
Total Revenues	Rs m	12,584	14,926	18.6%
Gross profit	Rs m	3,248	3,548	9.2%
Depreciation	Rs m	442	479	8.4%
Interest	Rs m	18	19	3.3%
Profit before tax	Rs m	3,578	3,442	-3.8%
Tax	Rs m	1,108	812	-26.7%
Profit after tax	Rs m	2,471	2,631	6.5%
Gross profit margin	%	27.5	24.4
Effective tax rate	%	31.0	23.6
Net profit margin	%	20.9	18.1

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NAVIN FLUORINE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 51.0%.
• Long-term debt stood at Rs 1,000 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 13% and stood at Rs 12 billion, while fixed assets rose 68% and stood at Rs 17 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 29 billion as against Rs 23 billion during FY21, thereby witnessing a growth of 22%.

NAVIN FLUORINE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,316	18,429	13.0
Current Liabilities	Rs m	3,670	5,544	51.0
Long-term Debt	Rs m	0	1,000	0.0
Total Liabilities	Rs m	23,485	28,536	21.5
Current assets	Rs m	13,598	11,897	-12.5
Fixed Assets	Rs m	9,887	16,639	68.3
Total Assets	Rs m	23,485	28,536	21.5

NAVIN FLUORINE Cash Flow Statement Analysis

• NAVIN FLUORINE's cash flow from operating activities (CFO) during FY22 stood at Rs 748 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 415 million, an improvement of 192% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -561 million from the Rs -449 million net cash flows seen during FY21.

NAVIN FLUORINE 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	2,373	748	-68.5%
Cash Flow from Investing Activities	Rs m	-2,371	-1,724	-
Cash Flow from Financing Activities	Rs m	-451	415	-
Net Cash Flow	Rs m	-449	-561	-

Current Valuations for NAVIN FLUORINE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 53.1, an improvement from the EPS of Rs 49.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,733.2, stands at 70.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 12.7 times.
• The company's price to cash flow (P/CF) ratio stood at 56.1 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	238.3	293.3
TTM Earnings per share	Rs	49.9	53.1
Diluted earnings per share	Rs	49.9	53.1
Price to Cash Flow	x	46.8	56.1
TTM P/E ratio	x	55.2	70.3
Price / Book Value ratio	x	6.3	9.5
Market Cap	Rs m	101,988	174,474
Dividends per share (Unadj.)	Rs	11.0	11.0

Ratio Analysis for NAVIN FLUORINE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY22, from 3.7x 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 182.2x during FY22, from 195.5x 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 declined and down at 14.3% during FY22, from 15.1% 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 17.8% during FY22, from 22.0% 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 9.3% during FY22, from 10.6% 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	3.7	2.1
Debtors’ Days	Days	9	9
Interest coverage	x	195.5	182.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.6	9.3
Return on equity	%	15.1	14.3
Return on capital employed	%	22.0	17.8

To see how NAVIN FLUORINE has performed over the last 5 years, please visit here.

NAVIN FLUORINE Share Price Performance

Over the last one year, NAVIN FLUORINE share price has moved down from Rs 3,861.4 to Rs 3,733.2, registering a loss of Rs 128.2 or around 3.3%.

Overall, the S&P BSE SENSEX is up 2.5% over the year.

(To know more, check out historical annual results for NAVIN FLUORINE and quarterly results for NAVIN FLUORINE)

Read: Latest Annual Report Analysis of NAVIN FLUORINE