ASHAPURA MINECHEM 2020-21 Annual Report Analysis

Wed, 31 Mar

ASHAPURA MINECHEM 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.

ASHAPURA MINECHEM Income Statement Analysis

• Operating income during the year rose 243.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY21 as against 124.7% in FY20.
• Depreciation charges increased by 58.4% and finance costs increased by 92.5% YoY, respectively.
• Other income grew by 281.2% YoY.
• Net profit for the year declined by 80.0% YoY.
• Net profit margins during the year declined from 112.0% in FY20 to 6.5% in FY21.

ASHAPURA MINECHEM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,343	11,481	243.4%
Other income	Rs m	159	608	281.2%
Total Revenues	Rs m	3,503	12,089	245.1%
Gross profit	Rs m	4,168	1,417	-66.0%
Depreciation	Rs m	284	450	58.4%
Interest	Rs m	311	600	92.5%
Profit before tax	Rs m	3,733	975	-73.9%
Tax	Rs m	-10	227	-2,298.2%
Profit after tax	Rs m	3,743	749	-80.0%
Gross profit margin	%	124.7	12.3
Effective tax rate	%	-0.3	23.2
Net profit margin	%	112.0	6.5

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ASHAPURA MINECHEM Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 30.0%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY20, a growth of 41.3%.
• Current assets rose 47% and stood at Rs 11 billion, while fixed assets rose 5% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 22 billion as against Rs 18 billion during FY20, thereby witnessing a growth of 23%.

ASHAPURA MINECHEM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,427	4,307	25.7
Current Liabilities	Rs m	7,521	9,776	30.0
Long-term Debt	Rs m	3,907	5,522	41.3
Total Liabilities	Rs m	18,057	22,224	23.1
Current assets	Rs m	7,699	11,316	47.0
Fixed Assets	Rs m	10,358	10,907	5.3
Total Assets	Rs m	18,057	22,224	23.1

ASHAPURA MINECHEM Cash Flow Statement Analysis

• ASHAPURA MINECHEM's cash flow from operating activities (CFO) during FY21 stood at Rs -196 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 7.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -53 million from the Rs -89 million net cash flows seen during FY20.

ASHAPURA MINECHEM 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	157	-196	-
Cash Flow from Investing Activities	Rs m	-1,556	-1,678	-
Cash Flow from Financing Activities	Rs m	1,309	1,822	39.1%
Net Cash Flow	Rs m	-89	-53	-

Current Valuations for ASHAPURA MINECHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.6, an decline from the EPS of Rs 43.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 104.2, stands at 12.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	38.4	132.0
TTM Earnings per share	Rs	43.0	8.6
Diluted earnings per share	Rs	40.9	8.2
Price to Cash Flow	x	0.5	5.9
TTM P/E ratio	x	0.5	12.7
Price / Book Value ratio	x	0.7	1.6
Market Cap	Rs m	2,540	7,083
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for ASHAPURA MINECHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.0x 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 2.6x during FY21, from 13.0x 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 17.4% during FY21, from 109.2% 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 16.0% during FY21, from 55.1% 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 6.1% during FY21, from 22.5% 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	1.0	1.2
Debtors’ Days	Days	2,017	917
Interest coverage	x	13.0	2.6
Debt to equity ratio	x	1.1	1.3
Return on assets	%	22.5	6.1
Return on equity	%	109.2	17.4
Return on capital employed	%	55.1	16.0

To see how ASHAPURA MINECHEM has performed over the last 5 years, please visit here.

ASHAPURA MINECHEM Share Price Performance

Over the last one year, ASHAPURA MINECHEM share price has moved up from Rs 20.5 to Rs 104.2, registering a gain of Rs 83.8 or around 409.5%.

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

(To know more, check out historical annual results for ASHAPURA MINECHEM and quarterly results for ASHAPURA MINECHEM)

Read: Latest Annual Report Analysis of ASHAPURA MINECHEM