Page 250 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

42(a). Ratio Analysis:

Explanation for change
March March % of
Particulars Numerator Denominator in the ratio by more
31, 2022 31, 2021 variance
than 25%
Liquidity Ratio
Current Ratio Current Assets Current Liabilities 2.52 2.77 (9.09%) -
(times)
Solvency Ratio
Debt-Equity Borrowings (Current + Non-current) + Total equity 0.0002 0.0007 (68.62%) Lease repayment during
Ratio (times) Lease liabilities (Current + Non-current) the year resulted in
improved ratio.
Debt Service Profit for the year from continuing Finance costs paid 48.44 36.53 32.58% Lease repayment during
Coverage Ratio operations + Depreciation and + Repayment of the year resulted in
(times) amortisation expense + Finance costs - borrowings (net of improved ratio.
Other income Proceeds) +Repayment
towards lease liabilities
Profitability ratio
Net Profit Ratio Profit for the year from continuing Net Sales 21.21% 16.05% 32.14% Profit for the year is
(%) operations (sale of products) higher majorly due to
higher price realisation
and higher other income.
Return on Equity Profit for the year Average Total Equity 5.61% 3.80% 47.62% Profit for the year is
Ratio (%) higher majorly due to
higher price realisation,
higher other income,
exceptional gain from
discontinuing operations.
Return on Profit before exceptional items and tax Tangible Net Worth + 6.40% 4.70% 36.15% Profit for the year is
Capital + Finance costs Total Debt + Deferred higher majorly due to
employed (%) Tax Liability higher price realisation
and higher other income.
Return on Profit for the year Average Total equity 5.61% 3.80% 47.62% Profit for the year is
Investment (%) higher majorly due to
higher price realisation,
higher other income,
exceptional gain from
discontinuing operations.
Utilization Ratio
Trade Revenue from operations Average Trade 22.78 21.06 8.18% -
Receivables Receivables
turnover ratio
(times)
Inventory Cost of materials consumed + Average Inventories 2.46 2.20 12.13% -
turnover ratio Purchases of stock-in-trade + Changes
(times) in inventories of finished goods, work-
in-progress and stock-in-trade + Power
and fuel +Packing materials consumed
Trade payables Cost of materials consumed + Average Trade Payables 3.31 2.54 30.24% Input cost has
turnover ratio Purchases of stock-in-trade + Changes signifcantly risen during
(times) in inventories of finished goods, work- the year.
in-progress and stock-in-trade + Power
and fuel +Packing materials consumed
Net capital Net Sales (sale of products) Average working capital 10.82 13.24 (18.27%) -
turnover ratio (Inventories + Trade
(times) receivables -Trade
payables)

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