ATUL 2020-21 Annual Report Analysis

Wed, 31 Mar

ATUL 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.

ATUL Income Statement Analysis

• Operating income during the year fell 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.4% in FY21 as against 22.0% in FY20.
• Depreciation charges increased by 4.7% and finance costs decreased by 0.5% YoY, respectively.
• Other income grew by 42.7% YoY.
• Net profit for the year declined by 2.0% YoY.
• Net profit margins during the year grew from 16.3% in FY20 to 17.5% in FY21.

ATUL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	40,931	37,315	-8.8%
Other income	Rs m	780	1,114	42.7%
Total Revenues	Rs m	41,711	38,429	-7.9%
Gross profit	Rs m	9,020	9,087	0.7%
Depreciation	Rs m	1,302	1,363	4.7%
Interest	Rs m	94	94	-0.5%
Profit before tax	Rs m	8,404	8,744	4.0%
Tax	Rs m	1,745	2,217	27.0%
Profit after tax	Rs m	6,659	6,528	-2.0%
Gross profit margin	%	22.0	24.4
Effective tax rate	%	20.8	25.3
Net profit margin	%	16.3	17.5

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ATUL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 6.6%.
• Long-term debt stood at Rs 982 million as compared to Rs 866 million during FY20, a growth of 13.4%.
• Current assets rose 21% and stood at Rs 28 billion, while fixed assets rose 15% and stood at Rs 24 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 51 billion as against Rs 44 billion during FY20, thereby witnessing a growth of 18%.

ATUL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	31,549	38,265	21.3
Current Liabilities	Rs m	9,446	10,073	6.6
Long-term Debt	Rs m	866	982	13.4
Total Liabilities	Rs m	43,564	51,362	17.9
Current assets	Rs m	22,947	27,653	20.5
Fixed Assets	Rs m	20,618	23,709	15.0
Total Assets	Rs m	43,564	51,362	17.9

ATUL Cash Flow Statement Analysis

• ATUL's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -522 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 207 million from the Rs -114 million net cash flows seen during FY20.

ATUL 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	8,814	7,180	-18.5%
Cash Flow from Investing Activities	Rs m	-7,827	-6,464	-
Cash Flow from Financing Activities	Rs m	-1,106	-522	-
Net Cash Flow	Rs m	-114	207	-

Current Valuations for ATUL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 220.6, an decline from the EPS of Rs 224.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,075.9, stands at 32.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.6 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	1,380.0	1,261.1
TTM Earnings per share	Rs	224.5	220.6
Diluted earnings per share	Rs	225.6	221.2
Price to Cash Flow	x	14.7	20.6
TTM P/E ratio	x	17.6	32.0
Price / Book Value ratio	x	4.1	4.2
Market Cap	Rs m	129,085	162,497
Dividends per share (Unadj.)	Rs	27.5	20.0

Ratio Analysis for ATUL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY21, from 2.4x 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 94.5x during FY21, from 90.4x 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 17.1% during FY21, from 21.1% 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 22.5% during FY21, from 26.2% 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 12.9% during FY21, from 15.5% 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	2.4	2.7
Debtors’ Days	Days	6	7
Interest coverage	x	90.4	94.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.5	12.9
Return on equity	%	21.1	17.1
Return on capital employed	%	26.2	22.5

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

ATUL Share Price Performance

Over the last one year, ATUL share price has moved up from Rs 3,974.9 to Rs 7,075.9, registering a gain of Rs 3,101.0 or around 78.0%.

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

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

Read: Latest Annual Report Analysis of ATUL