AVADH SUGAR & ENERGY 2020-21 Annual Report Analysis

Wed, 31 Mar

AVADH SUGAR & ENERGY 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.

AVADH SUGAR & ENERGY Income Statement Analysis

• Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY21 as against 10.2% in FY20.
• Depreciation charges increased by 7.7% and finance costs decreased by 0.0% YoY, respectively.
• Other income grew by 13.3% YoY.
• Net profit for the year declined by 12.4% YoY.
• Net profit margins during the year declined from 3.5% in FY20 to 2.9% in FY21.

AVADH SUGAR & ENERGY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	25,594	27,105	5.9%
Other income	Rs m	56	64	13.3%
Total Revenues	Rs m	25,650	27,169	5.9%
Gross profit	Rs m	2,614	2,593	-0.8%
Depreciation	Rs m	449	483	7.7%
Interest	Rs m	1,160	1,160	0.0%
Profit before tax	Rs m	1,062	1,014	-4.5%
Tax	Rs m	175	238	35.5%
Profit after tax	Rs m	886	776	-12.4%
Gross profit margin	%	10.2	9.6
Effective tax rate	%	16.5	23.5
Net profit margin	%	3.5	2.9

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AVADH SUGAR & ENERGY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 17 billion in FY20, thereby witnessing an decrease of -11.7%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY20, a fall of 15.3%.
• Current assets fell 15% and stood at Rs 15 billion, while fixed assets rose 7% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 29 billion during FY20, thereby witnessing a fall of 7%.

AVADH SUGAR & ENERGY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,918	6,658	12.5
Current Liabilities	Rs m	16,812	14,838	-11.7
Long-term Debt	Rs m	5,847	4,955	-15.3
Total Liabilities	Rs m	29,337	27,407	-6.6
Current assets	Rs m	18,126	15,397	-15.1
Fixed Assets	Rs m	11,211	12,011	7.1
Total Assets	Rs m	29,337	27,407	-6.6

AVADH SUGAR & ENERGY Cash Flow Statement Analysis

• AVADH SUGAR & ENERGY's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 151.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 9.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -5 million from the Rs 22 million net cash flows seen during FY20.

AVADH SUGAR & ENERGY 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	1,849	4,655	151.8%
Cash Flow from Investing Activities	Rs m	-984	-1,080	-
Cash Flow from Financing Activities	Rs m	-842	-3,580	-
Net Cash Flow	Rs m	22	-5	-

Current Valuations for AVADH SUGAR & ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.8, an decline from the EPS of Rs 44.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.7, stands at 4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 2.9 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	1,278.4	1,353.9
TTM Earnings per share	Rs	44.3	38.8
Diluted earnings per share	Rs	44.3	38.8
Price to Cash Flow	x	1.8	2.9
TTM P/E ratio	x	2.7	4.8
Price / Book Value ratio	x	1.4	0.5
Market Cap	Rs m	8,517	3,625
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for AVADH SUGAR & ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.1x 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 1.9x during FY21, from 1.9x 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 11.7% during FY21, from 15.0% 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 18.7% during FY21, from 18.9% 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 improved and stood at 7.1% during FY21, from 7.0% 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	1.1	1.0
Debtors’ Days	Days	155	74
Interest coverage	x	1.9	1.9
Debt to equity ratio	x	1.0	0.7
Return on assets	%	7.0	7.1
Return on equity	%	15.0	11.7
Return on capital employed	%	18.9	18.7

To see how AVADH SUGAR & ENERGY has performed over the last 5 years, please visit here.

AVADH SUGAR & ENERGY Share Price Performance

Over the last one year, AVADH SUGAR & ENERGY share price has moved up from Rs 118.7 to Rs 184.7, registering a gain of Rs 66.1 or around 55.7%.

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

(To know more, check out historical annual results for AVADH SUGAR & ENERGY and quarterly results for AVADH SUGAR & ENERGY)

Read: Latest Annual Report Analysis of AVADH SUGAR & ENERGY