AMARA RAJA BATTERIES 2020-21 Annual Report Analysis

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AMARA RAJA BATTERIES 2020-21 Annual Report Analysis
Mon, 9 Aug

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 9.6% in FY20 to 8.9% 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 % 9.6 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 730.0, stands at 19.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.9 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 13.0 12.9
TTM P/E ratio x 19.3 19.3
Price / Book Value ratio x 2.8 3.0
Market Cap Rs m 124,693 124,693
Dividends per share (Unadj.) Rs 11.0 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 717.9 to Rs 730.0, registering a gain of Rs 12.2 or around 1.7%.

Overall, the S&P BSE SENSEX is up 44.4% over the year.

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

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Related Views on News

AMARA RAJA BATTERIES 2019-20 Annual Report Analysis (Annual Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

Here's an analysis of the annual report of AMARA RAJA BATTERIES for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of AMARA RAJA BATTERIES. Also includes updates on the valuation of AMARA RAJA BATTERIES.

AMARA RAJA BATTERIES Announces Quarterly Results (1QFY21); Net Profit Down 55.5% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, AMARA RAJA BATTERIES has posted a net profit of Rs 627 m (down 55.5% YoY). Sales on the other hand came in at Rs 12 bn (down 36.6% YoY). Read on for a complete analysis of AMARA RAJA BATTERIES's quarterly results.

AMARA RAJA BATTERIES Announces Quarterly Results (4QFY20); Net Profit Up 14.5% (Quarterly Result Update)

Jun 1, 2020 | Updated on Jun 1, 2020

For the quarter ended March 2020, AMARA RAJA BATTERIES has posted a net profit of Rs 1 bn (up 14.5% YoY). Sales on the other hand came in at Rs 16 bn (up 0.9% YoY). Read on for a complete analysis of AMARA RAJA BATTERIES's quarterly results.

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