TCPL PACKAGING 2021-22 Annual Report Analysis

Tue, 26 Jul

TCPL PACKAGING 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.

TCPL PACKAGING Income Statement Analysis

• Operating income during the year rose 20.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 14.8% in FY21.
• Depreciation charges increased by 8.6% and finance costs decreased by 7.6% YoY, respectively.
• Other income grew by 41.3% YoY.
• Net profit for the year grew by 40.0% YoY.
• Net profit margins during the year grew from 3.7% in FY21 to 4.3% in FY22.

TCPL PACKAGING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,038	10,857	20.1%
Other income	Rs m	25	36	41.3%
Total Revenues	Rs m	9,064	10,893	20.2%
Gross profit	Rs m	1,335	1,544	15.7%
Depreciation	Rs m	515	559	8.6%
Interest	Rs m	372	343	-7.6%
Profit before tax	Rs m	473	678	43.1%
Tax	Rs m	139	209	50.6%
Profit after tax	Rs m	335	469	40.0%
Gross profit margin	%	14.8	14.2
Effective tax rate	%	29.3	30.8
Net profit margin	%	3.7	4.3

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TCPL PACKAGING Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 31.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY21, a growth of 58.6%.
• Current assets rose 27% and stood at Rs 5 billion, while fixed assets rose 28% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 28%.

TCPL PACKAGING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,005	3,399	13.1
Current Liabilities	Rs m	3,653	4,806	31.6
Long-term Debt	Rs m	1,316	2,087	58.6
Total Liabilities	Rs m	8,539	10,901	27.7
Current assets	Rs m	3,769	4,784	26.9
Fixed Assets	Rs m	4,770	6,117	28.2
Total Assets	Rs m	8,539	10,901	27.7

TCPL PACKAGING Cash Flow Statement Analysis

• TCPL PACKAGING's cash flow from operating activities (CFO) during FY22 stood at Rs 970 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 371.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 252% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 33 million from the Rs 29 million net cash flows seen during FY21.

TCPL PACKAGING 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	1,110	970	-12.6%
Cash Flow from Investing Activities	Rs m	-414	-1,952	-
Cash Flow from Financing Activities	Rs m	-667	1,015	-
Net Cash Flow	Rs m	29	33	14.3%

Current Valuations for TCPL PACKAGING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.5, an improvement from the EPS of Rs 36.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,085.0, stands at 21.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	993.2	1,193.1
TTM Earnings per share	Rs	36.8	51.5
Diluted earnings per share	Rs	36.8	51.5
Price to Cash Flow	x	4.7	5.3
TTM P/E ratio	x	11.8	21.1
Price / Book Value ratio	x	0.9	1.6
Market Cap	Rs m	2,798	5,469
Dividends per share (Unadj.)	Rs	7.4	10.0

Ratio Analysis for TCPL PACKAGING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 3.0x during FY22, from 2.3x 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 improved and stood at 13.8% during FY22, from 11.1% 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 18.6% during FY22, from 19.6% 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 7.4% during FY22, from 8.3% 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	1.0	1.0
Debtors’ Days	Days	715	765
Interest coverage	x	2.3	3.0
Debt to equity ratio	x	0.4	0.6
Return on assets	%	8.3	7.4
Return on equity	%	11.1	13.8
Return on capital employed	%	19.6	18.6

To see how TCPL PACKAGING has performed over the last 5 years, please visit here.

TCPL PACKAGING Share Price Performance

Over the last one year, TCPL PACKAGING share price has moved up from Rs 556.8 to Rs 1,085.0, registering a gain of Rs 528.2 or around 94.9%.

Overall, the S&P BSE SENSEX is up 5.0% over the year.

(To know more, check out historical annual results for TCPL PACKAGING and quarterly results for TCPL PACKAGING)

Read: Latest Annual Report Analysis of TCPL PACKAGING