APEX FROZEN FOODS 2020-21 Annual Report Analysis

Wed, 31 Mar

APEX FROZEN FOODS 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.

APEX FROZEN FOODS Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY21 as against 10.5% in FY20.
• Depreciation charges increased by 50.4% and finance costs increased by 49.6% YoY, respectively.
• Other income declined by 60.4% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year declined from 7.3% in FY20 to 5.4% in FY21.

APEX FROZEN FOODS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,271	8,185	-1.0%
Other income	Rs m	190	75	-60.4%
Total Revenues	Rs m	8,461	8,260	-2.4%
Gross profit	Rs m	870	909	4.5%
Depreciation	Rs m	146	219	50.4%
Interest	Rs m	106	159	49.6%
Profit before tax	Rs m	808	606	-25.0%
Tax	Rs m	201	163	-18.9%
Profit after tax	Rs m	606	443	-27.0%
Gross profit margin	%	10.5	11.1
Effective tax rate	%	24.9	26.9
Net profit margin	%	7.3	5.4

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APEX FROZEN FOODS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -8.4%.
• Long-term debt stood at Rs 281 million as compared to Rs 241 million during FY20, a growth of 16.6%.
• Current assets rose 15% and stood at Rs 4 billion, while fixed assets fell 7% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 5%.

APEX FROZEN FOODS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,959	4,398	11.1
Current Liabilities	Rs m	2,063	1,889	-8.4
Long-term Debt	Rs m	241	281	16.6
Total Liabilities	Rs m	6,231	6,545	5.0
Current assets	Rs m	3,352	3,860	15.2
Fixed Assets	Rs m	2,879	2,685	-6.8
Total Assets	Rs m	6,231	6,545	5.0

APEX FROZEN FOODS Cash Flow Statement Analysis

• APEX FROZEN FOODS's cash flow from operating activities (CFO) during FY21 stood at Rs 129 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -140 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 37 million, an improvement of 127% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 27 million from the Rs 6 million net cash flows seen during FY20.

APEX FROZEN FOODS 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	583	129	-77.8%
Cash Flow from Investing Activities	Rs m	-440	-140	-
Cash Flow from Financing Activities	Rs m	-137	37	-
Net Cash Flow	Rs m	6	27	369.3%

Current Valuations for APEX FROZEN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.2, an decline from the EPS of Rs 19.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 207.4, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	264.7	261.9
TTM Earnings per share	Rs	19.4	14.2
Diluted earnings per share	Rs	19.4	14.2
Price to Cash Flow	x	7.0	11.7
TTM P/E ratio	x	8.7	14.6
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	9,013	7,751
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for APEX FROZEN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.6x 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 4.8x during FY21, from 8.6x 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 10.1% during FY21, from 15.3% 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 16.4% during FY21, from 21.8% 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 9.2% during FY21, from 11.4% 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	1.6	2.0
Debtors’ Days	Days	349	689
Interest coverage	x	8.6	4.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.4	9.2
Return on equity	%	15.3	10.1
Return on capital employed	%	21.8	16.4

To see how APEX FROZEN FOODS has performed over the last 5 years, please visit here.

APEX FROZEN FOODS Share Price Performance

Over the last one year, APEX FROZEN FOODS share price has moved up from Rs 168.5 to Rs 207.4, registering a gain of Rs 38.9 or around 23.1%.

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

(To know more, check out historical annual results for APEX FROZEN FOODS and quarterly results for APEX FROZEN FOODS)

Read: Latest Annual Report Analysis of APEX FROZEN FOODS