ASAHI SONGWON 2020-21 Annual Report Analysis

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ASAHI SONGWON 2020-21 Annual Report Analysis
Tue, 9 Nov

ASAHI SONGWON 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 SONGWON Income Statement Analysis

  • Operating income during the year fell 0.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 56.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 12.1% in FY20.
  • Depreciation charges increased by 4.5% and finance costs decreased by 46.1% YoY, respectively.
  • Other income declined by 60.5% YoY.
  • Net profit for the year grew by 40.0% YoY.
  • Net profit margins during the year grew from 8.0% in FY20 to 11.3% in FY21.

ASAHI SONGWON Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 2,836 2,831 -0.2%
Other income Rs m 8 3 -60.5%
Total Revenues Rs m 2,844 2,834 -0.4%
Gross profit Rs m 344 540 56.9%
Depreciation Rs m 83 87 4.5%
Interest Rs m 36 19 -46.1%
Profit before tax Rs m 233 436 87.5%
Tax Rs m 4 117 2,545.5%
Profit after tax Rs m 228 319 40.0%
Gross profit margin % 12.1 19.1
Effective tax rate % 1.9 26.8
Net profit margin % 8.0 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ASAHI SONGWON Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 908 million as compared to Rs 366 million in FY20, thereby witnessing an increase of 148.5%.
  • Long-term debt down at Rs 75 million as compared to Rs 125 million during FY20, a fall of 40.1%.
  • Current assets rose 39% and stood at Rs 2 billion, while fixed assets rose 41% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 40%.

ASAHI SONGWON Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,016 2,275 12.8
 
Current Liabilities Rs m 366 908 148.5
Long-term Debt Rs m 125 75 -40.1
Total Liabilities Rs m 2,778 3,893 40.1
 
Current assets Rs m 1,173 1,627 38.7
Fixed Assets Rs m 1,605 2,266 41.2
Total Assets Rs m 2,778 3,893 40.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASAHI SONGWON Cash Flow Statement Analysis

  • ASAHI SONGWON's cash flow from operating activities (CFO) during FY21 stood at Rs 81 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -601 million, an improvement of 281.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 500 million, an improvement of 228% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -20 million from the Rs 23 million net cash flows seen during FY20.

ASAHI SONGWON 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 570 81 -85.9%
Cash Flow from Investing Activities Rs m -158 -601 -
Cash Flow from Financing Activities Rs m -389 500 -
Net Cash Flow Rs m 23 -20 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASAHI SONGWON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an improvement from the EPS of Rs 18.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 323.8, stands at 16.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.6 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 231.2 235.3
TTM Earnings per share Rs 18.6 26.6
Diluted earnings per share Rs 19.0 26.6
Price to Cash Flow x 12.8 9.6
TTM P/E ratio x 16.7 16.4
Price / Book Value ratio x 0.7 1.1
Market Cap Rs m 3,973 3,894
Dividends per share (Unadj.) Rs 3.0 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASAHI SONGWON

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 3.2x 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 23.5x during FY21, from 7.5x 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 improved and stood at 14.0% during FY21, from 11.3% 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 improved and stood at 19.4% during FY21, from 12.5% 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 8.7% during FY21, from 9.5% 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 3.2 1.8
Debtors’ Days Days 708 1,008
Interest coverage x 7.5 23.5
Debt to equity ratio x 0.1 0.0
Return on assets % 9.5 8.7
Return on equity % 11.3 14.0
Return on capital employed % 12.5 19.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ASAHI SONGWON Share Price Performance

Over the last one year, ASAHI SONGWON share price has moved up from Rs 239.2 to Rs 323.8, registering a gain of Rs 84.6 or around 35.3%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

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

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Related Views on News

ASAHI SONGWON Announces Quarterly Results (3QFY20); Net Profit Down 13.5% (Quarterly Result Update)

Feb 3, 2020 | Updated on Feb 3, 2020

For the quarter ended December 2019, ASAHI SONGWON has posted a net profit of Rs 35 m (down 13.5% YoY). Sales on the other hand came in at Rs 585 m (down 11.2% YoY). Read on for a complete analysis of ASAHI SONGWON's quarterly results.

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