ARCHIT ORGANOSYS 2021-22 Annual Report Analysis

Wed, 24 Aug

ARCHIT ORGANOSYS 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.

ARCHIT ORGANOSYS Income Statement Analysis

• Operating income during the year rose 44.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.8% in FY22 as against 11.7% in FY21.
• Depreciation charges increased by 27.8% and finance costs decreased by 24.7% YoY, respectively.
• Other income grew by 359.7% YoY.
• Net profit for the year grew by 64.4% YoY.
• Net profit margins during the year grew from 5.3% in FY21 to 6.0% in FY22.

ARCHIT ORGANOSYS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	945	1,367	44.6%
Other income	Rs m	5	25	359.7%
Total Revenues	Rs m	951	1,392	46.4%
Gross profit	Rs m	111	161	45.3%
Depreciation	Rs m	37	47	27.8%
Interest	Rs m	33	24	-24.7%
Profit before tax	Rs m	47	114	143.9%
Tax	Rs m	-3	32	NA
Profit after tax	Rs m	50	82	64.4%
Gross profit margin	%	11.7	11.8
Effective tax rate	%	-6.9	28.0
Net profit margin	%	5.3	6.0

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

ARCHIT ORGANOSYS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 394 million as compared to Rs 346 million in FY21, thereby witnessing an increase of 14.1%.
• Long-term debt stood at Rs 122 million as compared to Rs 121 million during FY21, a growth of 0.8%.
• Current assets rose 30% and stood at Rs 448 million, while fixed assets rose 17% and stood at Rs 606 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 864 million during FY21, thereby witnessing a growth of 22%.

ARCHIT ORGANOSYS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	392	519	32.5
Current Liabilities	Rs m	346	394	14.1
Long-term Debt	Rs m	121	122	0.8
Total Liabilities	Rs m	864	1,054	22.0
Current assets	Rs m	345	448	29.9
Fixed Assets	Rs m	519	606	16.7
Total Assets	Rs m	864	1,054	22.0

ARCHIT ORGANOSYS Cash Flow Statement Analysis

• ARCHIT ORGANOSYS's cash flow from operating activities (CFO) during FY22 stood at Rs 106 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -115 million, an improvement of 301.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 24 million, an improvement of 133% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 15 million from the Rs 9 million net cash flows seen during FY21.

ARCHIT ORGANOSYS 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	111	106	-4.4%
Cash Flow from Investing Activities	Rs m	-29	-115	-
Cash Flow from Financing Activities	Rs m	-74	24	-
Net Cash Flow	Rs m	9	15	78.2%

Current Valuations for ARCHIT ORGANOSYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 64.0, stands at 13.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	62.9	66.6
TTM Earnings per share	Rs	3.3	4.0
Diluted earnings per share	Rs	2.4	4.0
Price to Cash Flow	x	5.9	6.7
TTM P/E ratio	x	10.1	13.9
Price / Book Value ratio	x	0.6	1.7
Market Cap	Rs m	244	863
Dividends per share (Unadj.)	Rs	0.0	0.8

Ratio Analysis for ARCHIT ORGANOSYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 1.0x 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 5.7x during FY22, from 2.4x 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 15.9% during FY22, from 12.8% 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 21.6% during FY22, from 15.5% 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 10.1% during FY22, from 9.6% 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	1.0	1.1
Debtors’ Days	Days	966	731
Interest coverage	x	2.4	5.7
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.6	10.1
Return on equity	%	12.8	15.9
Return on capital employed	%	15.5	21.6

To see how ARCHIT ORGANOSYS has performed over the last 5 years, please visit here.

ARCHIT ORGANOSYS Share Price Performance

Over the last one year, ARCHIT ORGANOSYS share price has moved up from Rs 42.6 to Rs 64.0, registering a gain of Rs 21.4 or around 50.2%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

(To know more, check out historical annual results for ARCHIT ORGANOSYS and quarterly results for ARCHIT ORGANOSYS)