WHITE ORGANIC AGRO 2021-22 Annual Report Analysis

Mon, 19 Sep

WHITE ORGANIC AGRO 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.

WHITE ORGANIC AGRO Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.6% in FY22 as against 1.5% in FY21.
• Depreciation charges decreased by 76.2% and finance costs decreased by 99.8% YoY, respectively.
• Other income grew by 82.9% YoY.
• Net profit for the year grew by 2116.7% YoY.
• Net profit margins during the year grew from 0.3% in FY21 to 5.9% in FY22.

WHITE ORGANIC AGRO Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,396	1,481	6.1%
Other income	Rs m	31	56	82.9%
Total Revenues	Rs m	1,426	1,536	7.7%
Gross profit	Rs m	-21	53	NA
Depreciation	Rs m	0	0	-76.2%
Interest	Rs m	4	0	-99.8%
Profit before tax	Rs m	5	108	1,937.6%
Tax	Rs m	1	21	1,416.2%
Profit after tax	Rs m	4	88	2,116.7%
Gross profit margin	%	-1.5	3.6
Effective tax rate	%	25.6	19.0
Net profit margin	%	0.3	5.9

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WHITE ORGANIC AGRO Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 512 million as compared to Rs 514 million in FY21, thereby witnessing an decrease of -0.4%.
• Current assets fell 1% and stood at Rs 948 million, while fixed assets fell 63% and stood at Rs 103 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 fall of 15%.

WHITE ORGANIC AGRO Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	650	539	-17.0
Current Liabilities	Rs m	514	512	-0.4
Long-term Debt	Rs m	42	0	-100.0
Total Liabilities	Rs m	1,232	1,051	-14.7
Current assets	Rs m	956	948	-0.8
Fixed Assets	Rs m	276	103	-62.6
Total Assets	Rs m	1,232	1,051	-14.7

WHITE ORGANIC AGRO Cash Flow Statement Analysis

• WHITE ORGANIC AGRO's cash flow from operating activities (CFO) during FY22 stood at Rs -23 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 68 million, an improvement of 1,786.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -43 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 million from the Rs -40 million net cash flows seen during FY21.

WHITE ORGANIC AGRO 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	-85	-23	-
Cash Flow from Investing Activities	Rs m	4	68	1,786.7%
Cash Flow from Financing Activities	Rs m	42	-43	-
Net Cash Flow	Rs m	-40	2	-

Current Valuations for WHITE ORGANIC AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14.4, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	39.9	42.3
TTM Earnings per share	Rs	0.1	2.5
Diluted earnings per share	Rs	0.1	2.5
Price to Cash Flow	x	34.1	4.9
TTM P/E ratio	x	35.9	3.9
Price / Book Value ratio	x	0.4	0.8
Market Cap	Rs m	240	431
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WHITE ORGANIC AGRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 1.9x 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 10,842.0x 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 16.3% during FY22, from 0.6% 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 20.1% during FY22, from 1.4% 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 8.4% during FY22, from 0.7% 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	1.9	1.9
Debtors’ Days	Days	1,378	982
Interest coverage	x	2.3	10,842.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	0.7	8.4
Return on equity	%	0.6	16.3
Return on capital employed	%	1.4	20.1

To see how WHITE ORGANIC AGRO has performed over the last 5 years, please visit here.

WHITE ORGANIC AGRO Share Price Performance

Over the last one year, WHITE ORGANIC AGRO share price has moved up from Rs 7.2 to Rs 14.4, registering a gain of Rs 7.3 or around 101.4%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for WHITE ORGANIC AGRO and quarterly results for WHITE ORGANIC AGRO)