UNIQUE ORGANICS 2021-22 Annual Report Analysis

Mon, 5 Sep

UNIQUE ORGANICS 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.

UNIQUE ORGANICS Income Statement Analysis

• Operating income during the year rose 57.5% 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 0.1% in FY22 as against 1.1% in FY21.
• Depreciation charges increased by 1.9% and finance costs decreased by 2.6% YoY, respectively.
• Other income grew by 306.5% YoY.
• Net profit for the year declined by 62.7% YoY.
• Net profit margins during the year declined from 0.1% in FY21 to 0.0% in FY22.

UNIQUE ORGANICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	609	959	57.5%
Other income	Rs m	2	9	306.5%
Total Revenues	Rs m	611	969	58.4%
Gross profit	Rs m	7	-1	NA
Depreciation	Rs m	2	2	1.9%
Interest	Rs m	6	6	-2.6%
Profit before tax	Rs m	1	0	-63.2%
Tax	Rs m	1	0	-63.5%
Profit after tax	Rs m	1	0	-62.7%
Gross profit margin	%	1.1	-0.1
Effective tax rate	%	55.3	54.8
Net profit margin	%	0.1	0.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

UNIQUE ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 140 million as compared to Rs 74 million in FY21, thereby witnessing an increase of 89.9%.
• Long-term debt stood at Rs 15 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 46% and stood at Rs 264 million, while fixed assets fell 5% and stood at Rs 16 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 280 million as against Rs 198 million during FY21, thereby witnessing a growth of 41%.

UNIQUE ORGANICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	123	124	0.3
Current Liabilities	Rs m	74	140	89.9
Long-term Debt	Rs m	0	15	0.0
Total Liabilities	Rs m	198	280	41.3
Current assets	Rs m	181	264	45.7
Fixed Assets	Rs m	17	16	-4.9
Total Assets	Rs m	198	280	41.3

UNIQUE ORGANICS Cash Flow Statement Analysis

• UNIQUE ORGANICS's cash flow from operating activities (CFO) during FY22 stood at Rs -70 million, an improvement of 1,094.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 69 million, an improvement of 1,008% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 million from the Rs -1 million net cash flows seen during FY21.

UNIQUE ORGANICS 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	-6	-70	-
Cash Flow from Investing Activities	Rs m	-1	-1	-
Cash Flow from Financing Activities	Rs m	6	69	1,008.4%
Net Cash Flow	Rs m	-1	-2	-

Current Valuations for UNIQUE ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 37.5, stands at 10.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 79.1 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	102.4	161.2
TTM Earnings per share	Rs	0.1	0.0
Diluted earnings per share	Rs	0.1	0.0
Price to Cash Flow	x	34.1	79.1
TTM P/E ratio	x	142.4	10.0
Price / Book Value ratio	x	0.6	1.2
Market Cap	Rs m	77	146
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UNIQUE ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 2.5x 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 deteriorated and stood at 1.1x during FY22, from 1.2x 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 0.2% during FY22, from 0.4% 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 4.8% during FY22, from 6.1% 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 2.3% during FY22, from 3.5% 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	2.5	1.9
Debtors’ Days	Days	81,799	72,292
Interest coverage	x	1.2	1.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	3.5	2.3
Return on equity	%	0.4	0.2
Return on capital employed	%	6.1	4.8

To see how UNIQUE ORGANICS has performed over the last 5 years, please visit here.

UNIQUE ORGANICS Share Price Performance

Over the last one year, UNIQUE ORGANICS share price has moved up from Rs 15.0 to Rs 37.5, registering a gain of Rs 22.5 or around 150.0%.

Overall, the S&P BSE SENSEX is up 3.3% over the year.

(To know more, check out historical annual results for UNIQUE ORGANICS and quarterly results for UNIQUE ORGANICS)