AHLUWALIA CONTRACTS 2020-21 Annual Report Analysis

Wed, 31 Mar

AHLUWALIA CONTRACTS 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.

AHLUWALIA CONTRACTS Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY21 as against 8.1% in FY20.
• Depreciation charges decreased by 4.5% and finance costs increased by 21.7% YoY, respectively.
• Other income grew by 113.7% YoY.
• Net profit for the year grew by 19.9% YoY.
• Net profit margins during the year grew from 3.4% in FY20 to 3.9% in FY21.

AHLUWALIA CONTRACTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,849	19,822	5.2%
Other income	Rs m	104	223	113.7%
Total Revenues	Rs m	18,954	20,045	5.8%
Gross profit	Rs m	1,530	1,542	0.8%
Depreciation	Rs m	319	304	-4.5%
Interest	Rs m	350	426	21.7%
Profit before tax	Rs m	965	1,035	7.2%
Tax	Rs m	322	263	-18.3%
Profit after tax	Rs m	644	772	19.9%
Gross profit margin	%	8.1	7.8
Effective tax rate	%	33.3	25.4
Net profit margin	%	3.4	3.9

5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

AHLUWALIA CONTRACTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 16.3%.
• Long-term debt stood at Rs 6 million as compared to Rs 5 million during FY20, a growth of 16.3%.
• Current assets rose 21% and stood at Rs 16 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 17%.

AHLUWALIA CONTRACTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,028	8,788	9.5
Current Liabilities	Rs m	8,362	9,725	16.3
Long-term Debt	Rs m	5	6	16.3
Total Liabilities	Rs m	17,355	20,377	17.4
Current assets	Rs m	12,856	15,592	21.3
Fixed Assets	Rs m	4,499	4,785	6.4
Total Assets	Rs m	17,355	20,377	17.4

AHLUWALIA CONTRACTS Cash Flow Statement Analysis

• AHLUWALIA CONTRACTS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 136.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -479 million, an improvement of 4.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -507 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 274 million net cash flows seen during FY20.

AHLUWALIA CONTRACTS 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	1,096	2,591	136.3%
Cash Flow from Investing Activities	Rs m	-459	-479	-
Cash Flow from Financing Activities	Rs m	-364	-507	-
Net Cash Flow	Rs m	274	1,605	486.1%

Current Valuations for AHLUWALIA CONTRACTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 299.3, stands at 26.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 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	281.4	295.9
TTM Earnings per share	Rs	9.6	11.5
Diluted earnings per share	Rs	9.6	11.5
Price to Cash Flow	x	12.5	14.6
TTM P/E ratio	x	21.2	26.0
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	18,462	15,710
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AHLUWALIA CONTRACTS

• 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 3.4x during FY21, from 3.8x 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 8.8% during FY21, from 8.0% 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 16.6% 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 improved and stood at 5.9% during FY21, from 5.7% 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	955	690
Interest coverage	x	3.8	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	5.9
Return on equity	%	8.0	8.8
Return on capital employed	%	16.4	16.6

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

AHLUWALIA CONTRACTS Share Price Performance

Over the last one year, AHLUWALIA CONTRACTS share price has moved up from Rs 180.0 to Rs 299.3, registering a gain of Rs 119.3 or around 66.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

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

Read: Latest Annual Report Analysis of AHLUWALIA CONTRACTS