TAINWALA CHEMICAL 2021-22 Annual Report Analysis

Sun, 21 Aug

TAINWALA CHEMICAL 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.

TAINWALA CHEMICAL Income Statement Analysis

• Operating income during the year rose 19.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 48.0% in FY22 as against 37.5% in FY21.
• Depreciation charges decreased by 20.5% and finance costs increased by 777.5% YoY, respectively.
• Other income grew by 83.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 5.0% in FY21 to 4.8% in FY22.

TAINWALA CHEMICAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	65	77	19.4%
Other income	Rs m	26	48	83.7%
Total Revenues	Rs m	91	125	37.9%
Gross profit	Rs m	-24	-37	NA
Depreciation	Rs m	5	4	-20.5%
Interest	Rs m	0	4	777.5%
Profit before tax	Rs m	-3	4	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-3	4	NA
Gross profit margin	%	-37.5	-48.0
Effective tax rate	%	0.0	0.0
Net profit margin	%	-5.0	4.8

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TAINWALA CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 8 million as compared to Rs 18 million in FY21, thereby witnessing an decrease of -58.5%.
• Current assets fell 31% and stood at Rs 56 million, while fixed assets fell 7% and stood at Rs 859 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 916 million as against Rs 1 billion during FY21, thereby witnessing a fall of 9%.

TAINWALA CHEMICAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	980	902	-7.9
Current Liabilities	Rs m	18	8	-58.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,003	916	-8.7
Current assets	Rs m	82	56	-31.2
Fixed Assets	Rs m	921	859	-6.7
Total Assets	Rs m	1,003	916	-8.7

TAINWALA CHEMICAL Cash Flow Statement Analysis

• TAINWALA CHEMICAL's cash flow from operating activities (CFO) during FY22 stood at Rs -21 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 24 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 -1 million from the Rs 6 million net cash flows seen during FY21.

TAINWALA CHEMICAL 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	37	-21	-
Cash Flow from Investing Activities	Rs m	-30	24	-
Cash Flow from Financing Activities	Rs m	0	-4	-
Net Cash Flow	Rs m	6	-1	-

Current Valuations for TAINWALA CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs -0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 101.7, stands at 90.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 12.3 times.
• The company's price to cash flow (P/CF) ratio stood at 111.0 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	6.9	8.2
TTM Earnings per share	Rs	-0.3	0.4
Diluted earnings per share	Rs	-0.3	0.4
Price to Cash Flow	x	347.9	111.0
TTM P/E ratio	x	18.6	90.3
Price / Book Value ratio	x	0.6	0.9
Market Cap	Rs m	597	833
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TAINWALA CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.5x during FY22, from 4.5x 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 2.0x during FY22, from -7.1x 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 0.4% during FY22, from -0.3% 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 0.8% during FY22, from -0.3% 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 0.8% during FY22, from -0.3% 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	4.5	7.5
Debtors’ Days	Days	1,353	248
Interest coverage	x	-7.1	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.3	0.8
Return on equity	%	-0.3	0.4
Return on capital employed	%	-0.3	0.8

To see how TAINWALA CHEMICAL has performed over the last 5 years, please visit here.

TAINWALA CHEMICAL Share Price Performance

Over the last one year, TAINWALA CHEMICAL share price has moved up from Rs 85.8 to Rs 101.7, registering a gain of Rs 15.9 or around 18.5%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for TAINWALA CHEMICAL and quarterly results for TAINWALA CHEMICAL)