VIPUL DYE CHEM 2021-22 Annual Report Analysis

Thu, 8 Sep

VIPUL DYE CHEM 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.

VIPUL DYE CHEM Income Statement Analysis

• Operating income during the year rose 12.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY22 as against 13.6% in FY21.
• Depreciation charges decreased by 10.3% and finance costs increased by 21.0% YoY, respectively.
• Other income grew by 272.3% YoY.
• Net profit for the year grew by 1.7% YoY.
• Net profit margins during the year declined from 5.8% in FY21 to 5.2% in FY22.

VIPUL DYE CHEM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,187	1,332	12.2%
Other income	Rs m	7	24	272.3%
Total Revenues	Rs m	1,194	1,356	13.6%
Gross profit	Rs m	161	142	-11.9%
Depreciation	Rs m	58	52	-10.3%
Interest	Rs m	14	16	21.0%
Profit before tax	Rs m	96	97	1.9%
Tax	Rs m	27	28	2.5%
Profit after tax	Rs m	69	70	1.7%
Gross profit margin	%	13.6	10.6
Effective tax rate	%	28.3	28.5
Net profit margin	%	5.8	5.2

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

VIPUL DYE CHEM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 669 million as compared to Rs 560 million in FY21, thereby witnessing an increase of 19.5%.
• Long-term debt down at Rs 65 million as compared to Rs 92 million during FY21, a fall of 29.3%.
• Current assets rose 17% and stood at Rs 861 million, while fixed assets rose 21% and stood at Rs 407 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 19%.

VIPUL DYE CHEM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	385	523	35.9
Current Liabilities	Rs m	560	669	19.5
Long-term Debt	Rs m	92	65	-29.3
Total Liabilities	Rs m	1,069	1,268	18.5
Current assets	Rs m	733	861	17.5
Fixed Assets	Rs m	336	407	20.8
Total Assets	Rs m	1,069	1,268	18.5

VIPUL DYE CHEM Cash Flow Statement Analysis

• VIPUL DYE CHEM's cash flow from operating activities (CFO) during FY22 stood at Rs 25 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -111 million, an improvement of 610.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 54 million, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -32 million from the Rs 7 million net cash flows seen during FY21.

VIPUL DYE CHEM 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	-21	25	-
Cash Flow from Investing Activities	Rs m	-16	-111	-
Cash Flow from Financing Activities	Rs m	44	54	24.1%
Net Cash Flow	Rs m	7	-32	-

Current Valuations for VIPUL DYE CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an decline from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 162.4, stands at 32.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.3 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	124.3	129.9
TTM Earnings per share	Rs	7.2	6.8
Diluted earnings per share	Rs	5.3	5.4
Price to Cash Flow	x	17.3	16.3
TTM P/E ratio	x	31.9	32.2
Price / Book Value ratio	x	3.3	3.8
Market Cap	Rs m	1,289	1,985
Dividends per share (Unadj.)	Rs	0.9	0.9

Ratio Analysis for VIPUL DYE CHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.3x 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 6.9x during FY22, from 8.0x 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 13.3% during FY22, from 17.8% 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 declined and down at 19.4% during FY22, from 22.9% 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 6.8% during FY22, from 7.7% 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	1.3	1.3
Debtors’ Days	Days	1,088	1,168
Interest coverage	x	8.0	6.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.7	6.8
Return on equity	%	17.8	13.3
Return on capital employed	%	22.9	19.4

To see how VIPUL DYE CHEM has performed over the last 5 years, please visit here.

VIPUL DYE CHEM Share Price Performance

Over the last one year, VIPUL DYE CHEM share price has moved down from Rs 170.9 to Rs 162.4, registering a loss of Rs 8.6 or around 5.0%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for VIPUL DYE CHEM and quarterly results for VIPUL DYE CHEM)