ASAHI INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

ASAHI 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.

ASAHI INDIA Income Statement Analysis

• Operating income during the year fell 8.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.9% in FY21 as against 16.3% in FY20.
• Depreciation charges decreased by 3.5% and finance costs decreased by 2.0% YoY, respectively.
• Other income grew by 181.4% YoY.
• Net profit for the year declined by 14.3% YoY.
• Net profit margins during the year declined from 5.4% in FY20 to 5.0% in FY21.

ASAHI INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	26,432	24,212	-8.4%
Other income	Rs m	129	363	181.4%
Total Revenues	Rs m	26,561	24,575	-7.5%
Gross profit	Rs m	4,312	4,346	0.8%
Depreciation	Rs m	1,371	1,323	-3.5%
Interest	Rs m	1,461	1,432	-2.0%
Profit before tax	Rs m	1,610	1,955	21.4%
Tax	Rs m	195	742	281.5%
Profit after tax	Rs m	1,415	1,213	-14.3%
Gross profit margin	%	16.3	17.9
Effective tax rate	%	12.1	38.0
Net profit margin	%	5.4	5.0

Emerging Opportunity: Bluechip Bull Run

ASAHI INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 13 billion as compared to Rs 14 billion in FY20, thereby witnessing an decrease of -7.7%.
• Long-term debt down at Rs 10 billion as compared to Rs 11 billion during FY20, a fall of 9.7%.
• Current assets fell 2% and stood at Rs 11 billion, while fixed assets fell 1% and stood at Rs 26 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 37 billion as against Rs 38 billion during FY20, thereby witnessing a fall of 1%.

ASAHI INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,022	14,398	10.6
Current Liabilities	Rs m	13,965	12,885	-7.7
Long-term Debt	Rs m	11,087	10,009	-9.7
Total Liabilities	Rs m	37,759	37,219	-1.4
Current assets	Rs m	11,606	11,413	-1.7
Fixed Assets	Rs m	26,154	25,806	-1.3
Total Assets	Rs m	37,759	37,219	-1.4

ASAHI INDIA Cash Flow Statement Analysis

• ASAHI INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 79.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -934 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 509 million from the Rs -138 million net cash flows seen during FY20.

ASAHI 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	2,932	5,259	79.4%
Cash Flow from Investing Activities	Rs m	-2,137	-934	-
Cash Flow from Financing Activities	Rs m	-932	-3,815	-
Net Cash Flow	Rs m	-138	509	-

Current Valuations for ASAHI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an decline from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 309.3, stands at 62.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 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	108.7	99.6
TTM Earnings per share	Rs	5.8	5.0
Diluted earnings per share	Rs	5.8	5.0
Price to Cash Flow	x	13.6	23.2
TTM P/E ratio	x	26.7	62.0
Price / Book Value ratio	x	3.7	4.1
Market Cap	Rs m	48,053	58,889
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ASAHI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.8x 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 2.4x during FY21, from 2.1x 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 8.4% during FY21, from 10.9% 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 improved and stood at 13.9% during FY21, from 12.7% 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 7.1% during FY21, from 7.6% 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	0.8	0.9
Debtors’ Days	Days	361	404
Interest coverage	x	2.1	2.4
Debt to equity ratio	x	0.9	0.7
Return on assets	%	7.6	7.1
Return on equity	%	10.9	8.4
Return on capital employed	%	12.7	13.9

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

ASAHI INDIA Share Price Performance

Over the last one year, ASAHI INDIA share price has moved up from Rs 155.6 to Rs 309.3, registering a gain of Rs 153.7 or around 98.7%.

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

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

Read: Latest Annual Report Analysis of ASAHI INDIA