ACRYSIL 2020-21 Annual Report Analysis

Wed, 31 Mar

ACRYSIL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ACRYSIL Income Statement Analysis

• Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.6% in FY21 as against 17.2% in FY20.
• Depreciation charges increased by 6.2% and finance costs decreased by 15.4% YoY, respectively.
• Other income grew by 69.3% YoY.
• Net profit for the year grew by 72.0% YoY.
• Net profit margins during the year grew from 8.3% in FY20 to 12.7% in FY21.

ACRYSIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,762	3,097	12.1%
Other income	Rs m	47	80	69.3%
Total Revenues	Rs m	2,810	3,177	13.1%
Gross profit	Rs m	476	669	40.5%
Depreciation	Rs m	119	127	6.2%
Interest	Rs m	99	84	-15.4%
Profit before tax	Rs m	305	538	76.6%
Tax	Rs m	76	145	90.5%
Profit after tax	Rs m	229	393	72.0%
Gross profit margin	%	17.2	21.6
Effective tax rate	%	25.0	27.0
Net profit margin	%	8.3	12.7

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ACRYSIL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 18.7%.
• Long-term debt stood at Rs 217 million as compared to Rs 212 million during FY20, a growth of 2.3%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 23% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 21%.

ACRYSIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,578	1,914	21.3
Current Liabilities	Rs m	1,401	1,662	18.7
Long-term Debt	Rs m	212	217	2.3
Total Liabilities	Rs m	3,245	3,912	20.5
Current assets	Rs m	1,857	2,209	18.9
Fixed Assets	Rs m	1,388	1,703	22.7
Total Assets	Rs m	3,245	3,912	20.5

ACRYSIL Cash Flow Statement Analysis

• ACRYSIL's cash flow from operating activities (CFO) during FY21 stood at Rs 454 million, an improvement of 50.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -348 million, an improvement of 78.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -88 million, an improvement of 10% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 18 million from the Rs 8 million net cash flows seen during FY20.

ACRYSIL Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	301	454	50.8%
Cash Flow from Investing Activities	Rs m	-195	-348	-
Cash Flow from Financing Activities	Rs m	-99	-88	-
Net Cash Flow	Rs m	8	18	133.9%

Current Valuations for ACRYSIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 309.8, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	103.5	116.0
TTM Earnings per share	Rs	8.6	14.7
Diluted earnings per share	Rs	8.6	14.7
Price to Cash Flow	x	4.3	11.1
TTM P/E ratio	x	6.5	21.0
Price / Book Value ratio	x	1.6	3.0
Market Cap	Rs m	2,535	5,771
Dividends per share (Unadj.)	Rs	1.2	2.0

Ratio Analysis for ACRYSIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.3x during FY20. 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 7.4x during FY21, from 4.1x during FY20. 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 20.5% during FY21, from 14.5% during FY21. 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 29.2% during FY21, from 22.6% during FY20. 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 12.2% during FY21, from 10.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	823	978
Interest coverage	x	4.1	7.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.1	12.2
Return on equity	%	14.5	20.5
Return on capital employed	%	22.6	29.2

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

ACRYSIL Share Price Performance

Over the last one year, ACRYSIL share price has moved up from Rs 56.0 to Rs 309.8, registering a gain of Rs 253.8 or around 453.6%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of CARYSIL