ASSO.ALCOHOL 2020-21 Annual Report Analysis

Wed, 31 Mar

ASSO.ALCOHOL 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.

ASSO.ALCOHOL Income Statement Analysis

• Operating income during the year fell 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.4% in FY21 as against 15.0% in FY20.
• Depreciation charges decreased by 0.2% and finance costs decreased by 29.4% YoY, respectively.
• Other income grew by 40.9% YoY.
• Net profit for the year grew by 17.5% YoY.
• Net profit margins during the year grew from 9.7% in FY20 to 13.9% in FY21.

ASSO.ALCOHOL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,102	4,183	-18.0%
Other income	Rs m	33	46	40.9%
Total Revenues	Rs m	5,134	4,229	-17.6%
Gross profit	Rs m	766	894	16.7%
Depreciation	Rs m	141	141	-0.2%
Interest	Rs m	21	15	-29.4%
Profit before tax	Rs m	637	785	23.2%
Tax	Rs m	144	205	42.7%
Profit after tax	Rs m	493	580	17.5%
Gross profit margin	%	15.0	21.4
Effective tax rate	%	22.6	26.1
Net profit margin	%	9.7	13.9

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ASSO.ALCOHOL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 875 million as compared to Rs 642 million in FY20, thereby witnessing an increase of 36.3%.
• Long-term debt down at Rs 19 million as compared to Rs 47 million during FY20, a fall of 58.8%.
• Current assets rose 53% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 28%.

ASSO.ALCOHOL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,953	2,518	29.0
Current Liabilities	Rs m	642	875	36.3
Long-term Debt	Rs m	47	19	-58.8
Total Liabilities	Rs m	2,735	3,492	27.7
Current assets	Rs m	1,436	2,202	53.4
Fixed Assets	Rs m	1,300	1,291	-0.7
Total Assets	Rs m	2,735	3,492	27.7

ASSO.ALCOHOL Cash Flow Statement Analysis

• ASSO.ALCOHOL's cash flow from operating activities (CFO) during FY21 stood at Rs 667 million, an improvement of 14.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -647 million, an improvement of 97.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -34 million, an improvement of 86% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -14 million from the Rs 10 million net cash flows seen during FY20.

ASSO.ALCOHOL 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	584	667	14.2%
Cash Flow from Investing Activities	Rs m	-328	-647	-
Cash Flow from Financing Activities	Rs m	-246	-34	-
Net Cash Flow	Rs m	10	-14	-

Current Valuations for ASSO.ALCOHOL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.1, an improvement from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 421.4, stands at 13.1 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 7.4 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	282.2	231.3
TTM Earnings per share	Rs	27.3	32.1
Diluted earnings per share	Rs	27.3	32.1
Price to Cash Flow	x	4.5	7.4
TTM P/E ratio	x	5.8	13.1
Price / Book Value ratio	x	1.9	2.1
Market Cap	Rs m	3,797	5,296
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ASSO.ALCOHOL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.2x 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 improved and stood at 54.4x during FY21, from 31.6x 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 23.0% during FY21, from 25.3% 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 31.5% during FY21, from 32.9% 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 17.0% during FY21, from 18.8% 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	2.2	2.5
Debtors’ Days	Days	279	340
Interest coverage	x	31.6	54.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.8	17.0
Return on equity	%	25.3	23.0
Return on capital employed	%	32.9	31.5

To see how ASSO.ALCOHOL has performed over the last 5 years, please visit here.

ASSO.ALCOHOL Share Price Performance

Over the last one year, ASSO.ALCOHOL share price has moved up from Rs 157.7 to Rs 421.4, registering a gain of Rs 263.8 or around 167.3%.

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

(To know more, check out historical annual results for ASSO.ALCOHOL and quarterly results for ASSO.ALCOHOL)

Read: Latest Annual Report Analysis of ASSO.ALCOHOL