AMARA RAJA BATTERIES 2020-21 Annual Report Analysis

Wed, 31 Mar

AMARA RAJA BATTERIES 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.

AMARA RAJA BATTERIES Income Statement Analysis

• Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY21 as against 16.1% in FY20.
• Depreciation charges increased by 6.1% and finance costs decreased by 13.6% YoY, respectively.
• Other income grew by 59.7% YoY.
• Net profit for the year declined by 2.1% YoY.
• Net profit margins during the year declined from 9.7% in FY20 to 9.0% in FY21.

AMARA RAJA BATTERIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	68,392	71,498	4.5%
Other income	Rs m	553	884	59.7%
Total Revenues	Rs m	68,945	72,382	5.0%
Gross profit	Rs m	10,983	11,147	1.5%
Depreciation	Rs m	3,007	3,192	6.1%
Interest	Rs m	122	105	-13.6%
Profit before tax	Rs m	8,407	8,734	3.9%
Tax	Rs m	1,799	2,265	25.9%
Profit after tax	Rs m	6,608	6,468	-2.1%
Gross profit margin	%	16.1	15.6
Effective tax rate	%	21.4	25.9
Net profit margin	%	9.7	9.0

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AMARA RAJA BATTERIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 13 billion as compared to Rs 11 billion in FY20, thereby witnessing an increase of 20.6%.
• Long-term debt down at Rs 234 million as compared to Rs 343 million during FY20, a fall of 31.9%.
• Current assets rose 27% and stood at Rs 28 billion, while fixed assets rose 7% and stood at Rs 30 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 58 billion as against Rs 50 billion during FY20, thereby witnessing a growth of 16%.

AMARA RAJA BATTERIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	36,553	42,100	15.2
Current Liabilities	Rs m	11,021	13,295	20.6
Long-term Debt	Rs m	343	234	-31.9
Total Liabilities	Rs m	50,004	57,969	15.9
Current assets	Rs m	22,233	28,212	26.9
Fixed Assets	Rs m	27,772	29,757	7.1
Total Assets	Rs m	50,004	57,969	15.9

AMARA RAJA BATTERIES Cash Flow Statement Analysis

• AMARA RAJA BATTERIES's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 643 million from the Rs -176 million net cash flows seen during FY20.

AMARA RAJA BATTERIES 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	11,766	8,022	-31.8%
Cash Flow from Investing Activities	Rs m	-8,494	-6,350	-
Cash Flow from Financing Activities	Rs m	-3,638	-1,215	-
Net Cash Flow	Rs m	-176	643	-

Current Valuations for AMARA RAJA BATTERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.9, an decline from the EPS of Rs 38.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 853.5, stands at 22.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	400.4	418.6
TTM Earnings per share	Rs	38.7	37.9
Diluted earnings per share	Rs	38.7	37.9
Price to Cash Flow	x	8.5	13.1
TTM P/E ratio	x	12.4	22.5
Price / Book Value ratio	x	2.8	3.0
Market Cap	Rs m	101,044	126,529
Dividends per share (Unadj.)	Rs	11.0	11.0

Ratio Analysis for AMARA RAJA BATTERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 2.0x 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 83.9x during FY21, from 70.0x 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 15.4% during FY21, from 18.1% 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 20.9% during FY21, from 23.1% 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 11.3% during FY21, from 13.5% 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	2.0	2.1
Debtors’ Days	Days	3	4
Interest coverage	x	70.0	83.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.5	11.3
Return on equity	%	18.1	15.4
Return on capital employed	%	23.1	20.9

To see how AMARA RAJA BATTERIES has performed over the last 5 years, please visit here.

AMARA RAJA BATTERIES Share Price Performance

Over the last one year, AMARA RAJA BATTERIES share price has moved up from Rs 478.1 to Rs 853.5, registering a gain of Rs 375.4 or around 78.5%.

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

(To know more, check out historical annual results for AMARA RAJA BATTERIES and quarterly results for AMARA RAJA BATTERIES)

Read: Latest Annual Report Analysis of AMARA RAJA ENERGY & MOBILITY