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BLACK ROSE IND 2020-21 Annual Report Analysis

Wed, 31 Mar

BLACK ROSE IND 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.

BLACK ROSE IND Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY21 as against 8.5% in FY20.
• Depreciation charges increased by 10.5% and finance costs decreased by 44.6% YoY, respectively.
• Other income declined by 16.3% YoY.
• Net profit for the year grew by 32.8% YoY.
• Net profit margins during the year grew from 5.5% in FY20 to 7.2% in FY21.

BLACK ROSE IND Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,726	3,798	1.9%
Other income	Rs m	9	7	-16.3%
Total Revenues	Rs m	3,735	3,805	1.9%
Gross profit	Rs m	318	403	26.7%
Depreciation	Rs m	23	26	10.5%
Interest	Rs m	31	17	-44.6%
Profit before tax	Rs m	273	368	34.7%
Tax	Rs m	66	93	40.7%
Profit after tax	Rs m	207	274	32.8%
Gross profit margin	%	8.5	10.6
Effective tax rate	%	24.3	25.4
Net profit margin	%	5.5	7.2

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BLACK ROSE IND Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 661 million as compared to Rs 762 million in FY20, thereby witnessing an decrease of -13.2%.
• Long-term debt down at Rs 29 million as compared to Rs 45 million during FY20, a fall of 35.6%.
• Current assets rose 9% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 426 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 9%.

BLACK ROSE IND Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	675	930	37.8
Current Liabilities	Rs m	762	661	-13.2
Long-term Debt	Rs m	45	29	-35.6
Total Liabilities	Rs m	1,528	1,664	8.9
Current assets	Rs m	1,135	1,239	9.2
Fixed Assets	Rs m	394	426	8.1
Total Assets	Rs m	1,528	1,664	8.9

BLACK ROSE IND Cash Flow Statement Analysis

• BLACK ROSE IND's cash flow from operating activities (CFO) during FY21 stood at Rs 103 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -53 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -51 million, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 million from the Rs 17 million net cash flows seen during FY20.

BLACK ROSE IND 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	174	103	-40.5%
Cash Flow from Investing Activities	Rs m	-71	-53	-
Cash Flow from Financing Activities	Rs m	-86	-51	-
Net Cash Flow	Rs m	17	-1	-

Current Valuations for BLACK ROSE IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an improvement from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 173.9, stands at 32.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 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	73.1	74.5
TTM Earnings per share	Rs	4.1	5.4
Diluted earnings per share	Rs	4.1	5.4
Price to Cash Flow	x	16.9	21.7
TTM P/E ratio	x	18.8	32.3
Price / Book Value ratio	x	7.6	7.0
Market Cap	Rs m	5,105	6,515
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for BLACK ROSE IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 improved and stood at 22.7x during FY21, from 9.9x 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 29.5% during FY21, from 30.6% 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 40.1% during FY21, from 42.2% 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 17.5% during FY21, from 15.5% 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	1.9
Debtors’ Days	Days	467	421
Interest coverage	x	9.9	22.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	15.5	17.5
Return on equity	%	30.6	29.5
Return on capital employed	%	42.2	40.1

To see how BLACK ROSE IND has performed over the last 5 years, please visit here.

BLACK ROSE IND Share Price Performance

Over the last one year, BLACK ROSE IND share price has moved up from Rs 76.2 to Rs 173.9, registering a gain of Rs 97.7 or around 128.3%.

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

(To know more, check out historical annual results for BLACK ROSE IND and quarterly results for BLACK ROSE IND)