AMBER ENTERPRISES INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

AMBER ENTERPRISES INDIA 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.

AMBER ENTERPRISES INDIA Income Statement Analysis

• Operating income during the year fell 23.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY21 as against 7.8% in FY20.
• Depreciation charges increased by 8.9% and finance costs decreased by 2.0% YoY, respectively.
• Other income grew by 305.7% YoY.
• Net profit for the year declined by 49.3% YoY.
• Net profit margins during the year declined from 4.1% in FY20 to 2.7% in FY21.

AMBER ENTERPRISES INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	39,628	30,305	-23.5%
Other income	Rs m	82	331	305.7%
Total Revenues	Rs m	39,710	30,636	-22.8%
Gross profit	Rs m	3,101	2,212	-28.7%
Depreciation	Rs m	848	923	8.9%
Interest	Rs m	427	419	-2.0%
Profit before tax	Rs m	1,907	1,201	-37.0%
Tax	Rs m	266	369	38.6%
Profit after tax	Rs m	1,641	833	-49.3%
Gross profit margin	%	7.8	7.3
Effective tax rate	%	13.9	30.7
Net profit margin	%	4.1	2.7

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AMBER ENTERPRISES INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 17 billion as compared to Rs 14 billion in FY20, thereby witnessing an increase of 16.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 16.6%.
• Current assets rose 27% and stood at Rs 22 billion, while fixed assets rose 19% and stood at Rs 14 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 29 billion during FY20, thereby witnessing a growth of 24%.

AMBER ENTERPRISES INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,284	16,041	42.2
Current Liabilities	Rs m	14,448	16,764	16.0
Long-term Debt	Rs m	1,517	1,769	16.6
Total Liabilities	Rs m	28,989	35,845	23.7
Current assets	Rs m	17,309	21,959	26.9
Fixed Assets	Rs m	11,680	13,886	18.9
Total Assets	Rs m	28,989	35,845	23.7

AMBER ENTERPRISES INDIA Cash Flow Statement Analysis

• AMBER ENTERPRISES INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 47.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 4 billion, an improvement of 484% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 312 million net cash flows seen during FY20.

AMBER ENTERPRISES INDIA 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	2,882	2,210	-23.3%
Cash Flow from Investing Activities	Rs m	-3,266	-4,810	-
Cash Flow from Financing Activities	Rs m	634	3,700	483.5%
Net Cash Flow	Rs m	312	1,099	252.8%

Current Valuations for AMBER ENTERPRISES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.7, an decline from the EPS of Rs 52.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,320.7, stands at 134.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 44.0 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	1,260.0	899.5
TTM Earnings per share	Rs	52.2	24.7
Diluted earnings per share	Rs	48.7	24.7
Price to Cash Flow	x	16.6	44.0
TTM P/E ratio	x	25.2	134.4
Price / Book Value ratio	x	3.3	4.8
Market Cap	Rs m	37,618	77,312
Dividends per share (Unadj.)	Rs	3.2	0.0

Ratio Analysis for AMBER ENTERPRISES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.2x 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 3.9x during FY21, from 5.5x 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 declined and down at 5.2% during FY21, from 14.5% 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 9.1% during FY21, from 18.2% 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 3.5% during FY21, from 7.1% 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	1.2	1.3
Debtors’ Days	Days	787	1,288
Interest coverage	x	5.5	3.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.1	3.5
Return on equity	%	14.5	5.2
Return on capital employed	%	18.2	9.1

To see how AMBER ENTERPRISES INDIA has performed over the last 5 years, please visit here.

AMBER ENTERPRISES INDIA Share Price Performance

Over the last one year, AMBER ENTERPRISES INDIA share price has moved up from Rs 1,225.8 to Rs 3,320.7, registering a gain of Rs 2,094.9 or around 170.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for AMBER ENTERPRISES INDIA and quarterly results for AMBER ENTERPRISES INDIA)

Read: Latest Annual Report Analysis of AMBER ENTERPRISES INDIA