ADOR WELDING 2020-21 Annual Report Analysis

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ADOR WELDING 2020-21 Annual Report Analysis
Wed, 27 Oct

ADOR WELDING 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.

ADOR WELDING Income Statement Analysis

  • Operating income during the year fell 14.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 105.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.5% in FY21 as against 8.0% in FY20.
  • Depreciation charges increased by 3.9% and finance costs decreased by 18.7% YoY, respectively.
  • Other income declined by 18.2% YoY.
  • Net profit for the year declined by 139.7% YoY.
  • Net profit margins during the year declined from 4.9% in FY20 to 2.3% in FY21.

ADOR WELDING Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 5,264 4,477 -14.9%
Other income Rs m 90 74 -18.2%
Total Revenues Rs m 5,354 4,551 -15.0%
Gross profit Rs m 423 -21 -105.0%
Depreciation Rs m 108 112 3.9%
Interest Rs m 100 82 -18.7%
Profit before tax Rs m 305 -141 -146.1%
Tax Rs m 44 -37 -183.4%
Profit after tax Rs m 261 -104 -139.7%
Gross profit margin % 8.0 -0.5
Effective tax rate % 14.4 26.2
Net profit margin % 4.9 -2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ADOR WELDING Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 1 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -26.5%.
  • Current assets fell 21% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 5 billion during FY20, thereby witnessing a fall of 12%.

ADOR WELDING Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,474 2,375 -4.0
 
Current Liabilities Rs m 1,804 1,327 -26.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 4,574 4,047 -11.5
 
Current assets Rs m 2,713 2,130 -21.5
Fixed Assets Rs m 1,861 1,917 3.0
Total Assets Rs m 4,574 4,047 -11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ADOR WELDING Cash Flow Statement Analysis

  • ADOR WELDING's cash flow from operating activities (CFO) during FY21 stood at Rs 790 million, an improvement of 478.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -66 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -606 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 119 million from the Rs -216 million net cash flows seen during FY20.

ADOR WELDING 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 137 790 478.5%
Cash Flow from Investing Activities Rs m -221 -66 -
Cash Flow from Financing Activities Rs m -132 -606 -
Net Cash Flow Rs m -216 119 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ADOR WELDING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.6, an decline from the EPS of Rs 19.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 645.9, stands at -254.6 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 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 1,111.7 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 387.0 329.2
TTM Earnings per share Rs 19.2 -7.6
Diluted earnings per share Rs 19.2 -7.6
Price to Cash Flow x 23.8 1,111.7
TTM P/E ratio x -254.6 -254.6
Price / Book Value ratio x 1.5 1.5
Market Cap Rs m 8,783 8,783
Dividends per share (Unadj.) Rs 6.5 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ADOR WELDING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.5x 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 deteriorated and stood at -0.7x during FY21, from 4.0x 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 declined and down at -4.4% during FY21, from 10.6% 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 declined and down at -2.5% during FY21, from 16.4% 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 declined and down at -0.5% during FY21, from 7.9% 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 1.5 1.6
Debtors’ Days Days 900 860
Interest coverage x 4.0 -0.7
Debt to equity ratio x 0.0 0.0
Return on assets % 7.9 -0.5
Return on equity % 10.6 -4.4
Return on capital employed % 16.4 -2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ADOR WELDING Share Price Performance

Over the last one year, ADOR WELDING share price has moved up from Rs 238.3 to Rs 645.9, registering a gain of Rs 407.6 or around 171.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,864.4 (down 0.1%). Over the last one year it has moved up from 14,402.0 to 26,864.4, a gain of 12,462 points (up 86.5%).

Overall, the S&P BSE SENSEX is up 52.3% over the year.

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

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