ANANT RAJ 2020-21 Annual Report Analysis

Wed, 31 Mar

ANANT RAJ 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.

ANANT RAJ Income Statement Analysis

• Operating income during the year fell 9.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY21 as against 19.0% in FY20.
• Depreciation charges decreased by 3.1% and finance costs increased by 102.8% YoY, respectively.
• Other income grew by 110.2% YoY.
• Net profit for the year declined by 98.6% YoY.
• Net profit margins during the year declined from 6.1% in FY20 to 0.1% in FY21.

ANANT RAJ Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,762	2,497	-9.6%
Other income	Rs m	95	200	110.2%
Total Revenues	Rs m	2,857	2,696	-5.6%
Gross profit	Rs m	523	354	-32.4%
Depreciation	Rs m	177	172	-3.1%
Interest	Rs m	151	306	102.8%
Profit before tax	Rs m	290	76	-73.8%
Tax	Rs m	123	74	-39.8%
Profit after tax	Rs m	168	2	-98.6%
Gross profit margin	%	19.0	14.2
Effective tax rate	%	42.2	96.9
Net profit margin	%	6.1	0.1

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ANANT RAJ Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -19.6%.
• Long-term debt stood at Rs 14 billion as compared to Rs 12 billion during FY20, a growth of 12.9%.
• Current assets rose 5% and stood at Rs 24 billion, while fixed assets fell 4% and stood at Rs 22 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 46 billion as against Rs 46 billion during FY20, thereby witnessing a growth of 0%.

ANANT RAJ Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	24,854	24,995	0.6
Current Liabilities	Rs m	7,685	6,181	-19.6
Long-term Debt	Rs m	12,496	14,108	12.9
Total Liabilities	Rs m	45,877	46,106	0.5
Current assets	Rs m	22,591	23,807	5.4
Fixed Assets	Rs m	23,286	22,299	-4.2
Total Assets	Rs m	45,877	46,106	0.5

ANANT RAJ Cash Flow Statement Analysis

• ANANT RAJ's cash flow from operating activities (CFO) during FY21 stood at Rs -1 billion, an improvement of 33.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 472 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 830 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 185 million from the Rs -458 million net cash flows seen during FY20.

ANANT RAJ 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	-839	-1,118	-
Cash Flow from Investing Activities	Rs m	-49	472	-
Cash Flow from Financing Activities	Rs m	429	830	93.3%
Net Cash Flow	Rs m	-458	185	-

Current Valuations for ANANT RAJ

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.5, stands at 12,371.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 65.0 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	9.4	8.5
TTM Earnings per share	Rs	0.6	0.0
Diluted earnings per share	Rs	0.6	0.0
Price to Cash Flow	x	16.9	65.0
TTM P/E ratio	x	8.0	12,371.3
Price / Book Value ratio	x	0.3	0.5
Market Cap	Rs m	7,990	11,324
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for ANANT RAJ

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY21, from 2.9x 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 deteriorated and stood at 1.2x during FY21, from 2.9x 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 0.0% during FY21, from 0.7% 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 1.0% during FY21, from 1.2% 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 0.7% during FY21, from 0.7% 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	2.9	3.9
Debtors’ Days	Days	946	637
Interest coverage	x	2.9	1.2
Debt to equity ratio	x	0.5	0.6
Return on assets	%	0.7	0.7
Return on equity	%	0.7	0.0
Return on capital employed	%	1.2	1.0

To see how ANANT RAJ has performed over the last 5 years, please visit here.

ANANT RAJ Share Price Performance

Over the last one year, ANANT RAJ share price has moved up from Rs 19.8 to Rs 54.5, registering a gain of Rs 34.8 or around 175.9%.

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

(To know more, check out historical annual results for ANANT RAJ and quarterly results for ANANT RAJ)

Read: Latest Annual Report Analysis of ANANT RAJ