ALKYL AMINES 2020-21 Annual Report Analysis

Wed, 31 Mar

ALKYL AMINES 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.

ALKYL AMINES Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.5% in FY21 as against 27.4% in FY20.
• Depreciation charges increased by 8.0% and finance costs decreased by 38.3% YoY, respectively.
• Other income grew by 8.4% YoY.
• Net profit for the year grew by 50.0% YoY.
• Net profit margins during the year grew from 19.8% in FY20 to 23.8% in FY21.

ALKYL AMINES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,929	12,424	25.1%
Other income	Rs m	64	70	8.4%
Total Revenues	Rs m	9,993	12,494	25.0%
Gross profit	Rs m	2,721	4,291	57.7%
Depreciation	Rs m	269	291	8.0%
Interest	Rs m	103	63	-38.3%
Profit before tax	Rs m	2,414	4,007	66.0%
Tax	Rs m	444	1,054	137.1%
Profit after tax	Rs m	1,969	2,953	50.0%
Gross profit margin	%	27.4	34.5
Effective tax rate	%	18.4	26.3
Net profit margin	%	19.8	23.8

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ALKYL AMINES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 83.2%.
• Long-term debt down at Rs 216 million as compared to Rs 479 million during FY20, a fall of 55.0%.
• Current assets rose 79% and stood at Rs 5 billion, while fixed assets rose 33% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 48%.

ALKYL AMINES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,347	7,896	47.7
Current Liabilities	Rs m	1,538	2,818	83.2
Long-term Debt	Rs m	479	216	-55.0
Total Liabilities	Rs m	9,152	13,566	48.2
Current assets	Rs m	2,941	5,279	79.5
Fixed Assets	Rs m	6,210	8,287	33.4
Total Assets	Rs m	9,152	13,566	48.2

ALKYL AMINES Cash Flow Statement Analysis

• ALKYL AMINES's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 93.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 421.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -865 million, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 649 million from the Rs 119 million net cash flows seen during FY20.

ALKYL AMINES 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	1,878	3,640	93.8%
Cash Flow from Investing Activities	Rs m	-408	-2,127	-
Cash Flow from Financing Activities	Rs m	-1,351	-865	-
Net Cash Flow	Rs m	119	649	445.4%

Current Valuations for ALKYL AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 144.7, an improvement from the EPS of Rs 96.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,690.5, stands at 98.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 36.8 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 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	486.7	608.7
TTM Earnings per share	Rs	96.5	144.7
Diluted earnings per share	Rs	38.6	57.8
Price to Cash Flow	x	27.5	22.3
TTM P/E ratio	x	31.3	98.4
Price / Book Value ratio	x	4.7	9.2
Market Cap	Rs m	25,200	72,453
Dividends per share (Unadj.)	Rs	8.0	10.0

Ratio Analysis for ALKYL AMINES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY21, from 1.9x 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 64.3x during FY21, from 24.5x 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 37.4% during FY21, from 36.8% 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 50.2% during FY21, from 43.2% 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 declined and down at 22.2% during FY21, from 22.6% 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	1.9	1.9
Debtors’ Days	Days	604	670
Interest coverage	x	24.5	64.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	22.6	22.2
Return on equity	%	36.8	37.4
Return on capital employed	%	43.2	50.2

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

ALKYL AMINES Share Price Performance

Over the last one year, ALKYL AMINES share price has moved up from Rs 1,204.7 to Rs 5,690.5, registering a gain of Rs 4,485.8 or around 372.4%.

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

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

Read: Latest Annual Report Analysis of ALKYL AMINES