VAPI PAPER 2021-22 Annual Report Analysis

Tue, 20 Sep

VAPI PAPER 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.

VAPI PAPER Income Statement Analysis

• Operating income during the year fell 38.1% 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 38.3% in FY22 as against 0.2% in FY21.
• Depreciation charges decreased by 6.5% increased by 0.0% YoY, respectively.
• Other income grew by 99.6% YoY.
• Net profit for the year declined by 17.7% YoY.
• Net profit margins during the year grew from 13.4% in FY21 to 17.9% in FY22.

VAPI PAPER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	23	14	-38.1%
Other income	Rs m	6	11	99.6%
Total Revenues	Rs m	29	25	-11.5%
Gross profit	Rs m	0	-5	NA
Depreciation	Rs m	2	2	-6.5%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	4	4	5.8%
Tax	Rs m	1	1	144.2%
Profit after tax	Rs m	3	3	-17.7%
Gross profit margin	%	-0.2	-38.3
Effective tax rate	%	14.4	33.2
Net profit margin	%	13.4	17.9

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VAPI PAPER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 205 million as compared to Rs 2 million in FY21, thereby witnessing an increase of 8306.1%.
• Long-term debt down at Rs 73 million as compared to Rs 75 million during FY21, a fall of 2.9%.
• Current assets rose 1,942% and stood at Rs 212 million, while fixed assets fell 2% and stood at Rs 23 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 235 million as against Rs 34 million during FY21, thereby witnessing a growth of 588%.

VAPI PAPER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-53	-50	NA
Current Liabilities	Rs m	2	205	8,306.1
Long-term Debt	Rs m	75	73	-2.9
Total Liabilities	Rs m	34	235	587.9
Current assets	Rs m	10	212	1,941.6
Fixed Assets	Rs m	24	23	-2.1
Total Assets	Rs m	34	235	587.9

VAPI PAPER Cash Flow Statement Analysis

• VAPI PAPER's cash flow from operating activities (CFO) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 2 million, an improvement of 1,564.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 million from the Rs 2 million net cash flows seen during FY21.

VAPI PAPER 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	4	0	-90.6%
Cash Flow from Investing Activities	Rs m	0	2	1,564.3%
Cash Flow from Financing Activities	Rs m	-2	-2	-
Net Cash Flow	Rs m	2	1	-77.0%

Current Valuations for VAPI PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 83.1, stands at 56.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -3.8 times, while the price to sales ratio stands at 13.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.2 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	10.1	6.3
TTM Earnings per share	Rs	1.4	1.1
Diluted earnings per share	Rs	1.4	1.1
Price to Cash Flow	x	7.4	17.2
TTM P/E ratio	x	11.8	56.2
Price / Book Value ratio	x	-1.3	-1.5
Market Cap	Rs m	71	74
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VAPI PAPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 4.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at -5.1% during FY22, from -5.9% 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 16.9% during FY22, from 16.2% 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 1.1% during FY22, from 9.1% 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	4.3	1.0
Debtors’ Days	Days	49,955,352	59,979,859
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	-1.4	-1.4
Return on assets	%	9.1	1.1
Return on equity	%	-5.9	-5.1
Return on capital employed	%	16.2	16.9

To see how VAPI PAPER has performed over the last 5 years, please visit here.

VAPI PAPER Share Price Performance

Over the last one year, VAPI PAPER share price has moved up from Rs 27.1 to Rs 83.1, registering a gain of Rs 56.0 or around 206.5%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for VAPI PAPER and quarterly results for VAPI PAPER)