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AVANTI FEEDS 2020-21 Annual Report Analysis
Wed, 31 Mar

AVANTI FEEDS 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.

AVANTI FEEDS Income Statement Analysis

  • Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY21 as against 10.8% in FY20.
  • Depreciation charges increased by 8.5% and finance costs decreased by 30.4% YoY, respectively.
  • Other income grew by 15.2% YoY.
  • Net profit for the year grew by 3.1% YoY.
  • Net profit margins during the year grew from 9.4% in FY20 to 9.7% in FY21.

AVANTI FEEDS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 41,153 41,006 -0.4%
Other income Rs m 804 926 15.2%
Total Revenues Rs m 41,957 41,931 -0.1%
Gross profit Rs m 4,462 4,615 3.4%
Depreciation Rs m 377 409 8.5%
Interest Rs m 44 31 -30.4%
Profit before tax Rs m 4,844 5,101 5.3%
Tax Rs m 986 1,123 13.9%
Profit after tax Rs m 3,859 3,978 3.1%
Gross profit margin % 10.8 11.3
Effective tax rate % 20.3 22.0
Net profit margin % 9.4 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

AVANTI FEEDS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 3.8%.
  • Current assets rose 21% and stood at Rs 18 billion, while fixed assets rose 24% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 23 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 21%.

AVANTI FEEDS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 14,037 17,612 25.5
 
Current Liabilities Rs m 2,634 2,734 3.8
Long-term Debt Rs m 2 0 -100.0
Total Liabilities Rs m 18,800 22,796 21.3
 
Current assets Rs m 15,153 18,275 20.6
Fixed Assets Rs m 3,647 4,521 24.0
Total Assets Rs m 18,800 22,796 21.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AVANTI FEEDS Cash Flow Statement Analysis

  • AVANTI FEEDS's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 114.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 363.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 146 million, an improvement of 110% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 312 million from the Rs -422 million net cash flows seen during FY20.

AVANTI FEEDS 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 1,782 3,826 114.7%
Cash Flow from Investing Activities Rs m -791 -3,661 -
Cash Flow from Financing Activities Rs m -1,413 146 -
Net Cash Flow Rs m -422 312 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AVANTI FEEDS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.2, an improvement from the EPS of Rs 28.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 414.8, stands at 14.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.5 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 302.0 301.0
TTM Earnings per share Rs 28.3 29.2
Diluted earnings per share Rs 28.3 29.2
Price to Cash Flow x 9.5 13.5
TTM P/E ratio x 10.4 14.2
Price / Book Value ratio x 4.9 3.4
Market Cap Rs m 69,478 59,165
Dividends per share (Unadj.) Rs 5.1 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AVANTI FEEDS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 6.7x during FY21, from 5.8x 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 168.2x during FY21, from 111.5x 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 declined and down at 22.6% during FY21, from 27.5% 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 29.1% during FY21, from 34.8% 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 17.6% during FY21, from 20.8% 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 5.8 6.7
Debtors’ Days Days 79 59
Interest coverage x 111.5 168.2
Debt to equity ratio x 0.0 0.0
Return on assets % 20.8 17.6
Return on equity % 27.5 22.6
Return on capital employed % 34.8 29.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

AVANTI FEEDS Share Price Performance

Over the last one year, AVANTI FEEDS share price has moved up from Rs 294.2 to Rs 414.8, registering a gain of Rs 120.7 or around 41.0%.

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

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

Annual Report FAQs

What is the current share price of AVANTI FEEDS?

AVANTI FEEDS currently trades at Rs 484.4 per share. You can check out the latest share price performance of AVANTI FEEDS here...

What was the revenue of AVANTI FEEDS in FY21? How does it compare to earlier years?

The revenues of AVANTI FEEDS stood at Rs 41,931 m in FY21, which was down -0.1% compared to Rs 41,957 m reported in FY20.

AVANTI FEEDS' revenue has grown from Rs 26,394 m in FY17 to Rs 41,931 m in FY21.

Over the past 5 years, the revenue of AVANTI FEEDS has grown at a CAGR of 12.3%.

What was the net profit of AVANTI FEEDS in FY21? How does it compare to earlier years?

The net profit of AVANTI FEEDS stood at Rs 3,978 m in FY21, which was up 3.1% compared to Rs 3,859 m reported in FY20.

This compares to a net profit of Rs 3,064 m in FY19 and a net profit of Rs 4,654 m in FY18.

Over the past 5 years, AVANTI FEEDS net profit has grown at a CAGR of 15.1%.

What does the cash flow statement of AVANTI FEEDS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AVANTI FEEDS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 3,826 m as compared to Rs 1,782 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -3,661 m as compared to Rs -791 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 146 m as compared to Rs -1,413 m in FY20.

Here's the cash flow statement of AVANTI FEEDS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,7782,8091,8381,7823,826
From Investments-4,078-2,693-268-791-3,661
From Financial Activity1,005-455-1,058-1,413146
Net Cashflow-295-338512-422312

What does the Key Ratio analysis of AVANTI FEEDS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AVANTI FEEDS reveals:

  • Operating profit margins witnessed a fall and down at 11.3% in FY21 as against 10.8% in FY20.
  • Net profit margins grew from 9.4% in FY20 to 9.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of AVANTI FEEDS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)12.720.011.910.811.3
Net Profit Margin (%)8.713.78.89.49.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of AVANTI FEEDS

 

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