AMBIKA COTTON 2020-21 Annual Report Analysis

Wed, 31 Mar

AMBIKA COTTON 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.

AMBIKA COTTON Income Statement Analysis

• Operating income during the year rose 1.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.9% in FY21 as against 17.0% in FY20.
• Depreciation charges increased by 4.9% and finance costs decreased by 30.2% YoY, respectively.
• Other income declined by 56.5% YoY.
• Net profit for the year grew by 30.0% YoY.
• Net profit margins during the year grew from 8.4% in FY20 to 10.7% in FY21.

AMBIKA COTTON Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,231	6,334	1.6%
Other income	Rs m	8	3	-56.5%
Total Revenues	Rs m	6,239	6,337	1.6%
Gross profit	Rs m	1,059	1,259	18.9%
Depreciation	Rs m	276	289	4.9%
Interest	Rs m	99	69	-30.2%
Profit before tax	Rs m	691	904	30.7%
Tax	Rs m	169	224	33.0%
Profit after tax	Rs m	523	679	30.0%
Gross profit margin	%	17.0	19.9
Effective tax rate	%	24.4	24.8
Net profit margin	%	8.4	10.7

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AMBIKA COTTON Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 603 million as compared to Rs 1 billion in FY20, thereby witnessing an decrease of -45.1%.
• Current assets rose 3% and stood at Rs 4 billion, while fixed assets fell 2% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 1%.

AMBIKA COTTON Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,061	5,652	11.7
Current Liabilities	Rs m	1,099	603	-45.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,460	6,512	0.8
Current assets	Rs m	3,819	3,937	3.1
Fixed Assets	Rs m	2,641	2,575	-2.5
Total Assets	Rs m	6,460	6,512	0.8

AMBIKA COTTON Cash Flow Statement Analysis

• AMBIKA COTTON's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 112.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -259 million, an improvement of 793.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -844 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -49 million from the Rs 9 million net cash flows seen during FY20.

AMBIKA COTTON 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	495	1,053	112.7%
Cash Flow from Investing Activities	Rs m	-29	-259	-
Cash Flow from Financing Activities	Rs m	-458	-844	-
Net Cash Flow	Rs m	9	-49	-

Current Valuations for AMBIKA COTTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 118.6, an improvement from the EPS of Rs 91.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 891.2, stands at 7.5 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 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	1,087.4	1,105.3
TTM Earnings per share	Rs	91.2	118.6
Diluted earnings per share	Rs	91.3	118.7
Price to Cash Flow	x	3.8	5.1
TTM P/E ratio	x	5.8	7.5
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	4,474	4,895
Dividends per share (Unadj.)	Rs	15.0	35.0

Ratio Analysis for AMBIKA COTTON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.5x during FY21, from 3.5x 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 14.1x during FY21, from 8.0x 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 12.0% during FY21, from 10.3% 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 17.2% during FY21, from 15.6% 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 11.5% during FY21, from 9.6% 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	3.5	6.5
Debtors’ Days	Days	106	78
Interest coverage	x	8.0	14.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	11.5
Return on equity	%	10.3	12.0
Return on capital employed	%	15.6	17.2

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

AMBIKA COTTON Share Price Performance

Over the last one year, AMBIKA COTTON share price has moved up from Rs 530.0 to Rs 891.2, registering a gain of Rs 361.3 or around 68.2%.

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

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

Read: Latest Annual Report Analysis of AMBIKA COTTON