ZEAL AQUA 2021-22 Annual Report Analysis

Fri, 29 Jul

ZEAL AQUA 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.

ZEAL AQUA Income Statement Analysis

• Operating income during the year rose 16.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY22 as against 6.4% in FY21.
• Depreciation charges decreased by 12.8% and finance costs decreased by 20.6% YoY, respectively.
• Other income grew by 44.0% YoY.
• Net profit for the year grew by 35.2% YoY.
• Net profit margins during the year grew from 1.4% in FY21 to 1.7% in FY22.

ZEAL AQUA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,975	3,452	16.1%
Other income	Rs m	54	77	44.0%
Total Revenues	Rs m	3,028	3,529	16.5%
Gross profit	Rs m	192	154	-19.4%
Depreciation	Rs m	64	56	-12.8%
Interest	Rs m	131	104	-20.6%
Profit before tax	Rs m	50	72	42.6%
Tax	Rs m	8	14	82.4%
Profit after tax	Rs m	43	57	35.2%
Gross profit margin	%	6.4	4.5
Effective tax rate	%	15.7	20.0
Net profit margin	%	1.4	1.7

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ZEAL AQUA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -32.4%.
• Long-term debt stood at Rs 376 million as compared to Rs 250 million during FY21, a growth of 50.6%.
• Current assets fell 17% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 384 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 3 billion during FY21, thereby witnessing a fall of 15%.

ZEAL AQUA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	581	638	9.9
Current Liabilities	Rs m	1,834	1,240	-32.4
Long-term Debt	Rs m	250	376	50.6
Total Liabilities	Rs m	2,654	2,245	-15.4
Current assets	Rs m	2,235	1,857	-16.9
Fixed Assets	Rs m	413	384	-7.0
Total Assets	Rs m	2,654	2,245	-15.4

ZEAL AQUA Cash Flow Statement Analysis

• ZEAL AQUA's cash flow from operating activities (CFO) during FY22 stood at Rs 8 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -15 million, an improvement of 5,131.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 23 million, an improvement of 135% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 16 million from the Rs 1 million net cash flows seen during FY21.

ZEAL AQUA 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	68	8	-88.6%
Cash Flow from Investing Activities	Rs m	0	-15	-
Cash Flow from Financing Activities	Rs m	-67	23	-
Net Cash Flow	Rs m	1	16	2,244.8%

Current Valuations for ZEAL AQUA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.5, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 95.9 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	235.9	27.4
TTM Earnings per share	Rs	3.4	0.5
Diluted earnings per share	Rs	0.3	0.5
Price to Cash Flow	x	77.5	95.9
TTM P/E ratio	x	194.1	16.5
Price / Book Value ratio	x	1.5	17.0
Market Cap	Rs m	856	10,861
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZEAL AQUA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY22, from 1.2x 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 1.7x during FY22, from 1.4x 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 9.0% during FY22, from 7.3% 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 17.3% during FY22, from 21.8% 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 7.2% during FY22, from 6.5% 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	1.2	1.5
Debtors’ Days	Days	1,115	525
Interest coverage	x	1.4	1.7
Debt to equity ratio	x	0.4	0.6
Return on assets	%	6.5	7.2
Return on equity	%	7.3	9.0
Return on capital employed	%	21.8	17.3

To see how ZEAL AQUA has performed over the last 5 years, please visit here.

ZEAL AQUA Share Price Performance

Over the last one year, ZEAL AQUA share price has moved down from Rs 143.8 to Rs 7.5, registering a loss of Rs 136.3 or around 94.8%.

Overall, the S&P BSE SENSEX is up 9.1% over the year.

(To know more, check out historical annual results for ZEAL AQUA and quarterly results for ZEAL AQUA)