AVT NATURAL 2020-21 Annual Report Analysis

Wed, 31 Mar

AVT NATURAL 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.

AVT NATURAL Income Statement Analysis

• Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY21 as against 14.4% in FY20.
• Depreciation charges increased by 10.6% and finance costs decreased by 27.9% YoY, respectively.
• Other income grew by 21.5% YoY.
• Net profit for the year grew by 33.2% YoY.
• Net profit margins during the year grew from 8.6% in FY20 to 9.3% in FY21.

AVT NATURAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,964	4,851	22.4%
Other income	Rs m	70	85	21.5%
Total Revenues	Rs m	4,034	4,936	22.4%
Gross profit	Rs m	571	712	24.8%
Depreciation	Rs m	137	152	10.6%
Interest	Rs m	56	40	-27.9%
Profit before tax	Rs m	448	605	35.2%
Tax	Rs m	108	153	41.4%
Profit after tax	Rs m	340	453	33.2%
Gross profit margin	%	14.4	14.7
Effective tax rate	%	24.1	25.2
Net profit margin	%	8.6	9.3

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AVT NATURAL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 979 million as compared to Rs 820 million in FY20, thereby witnessing an increase of 19.4%.
• Long-term debt down at Rs 75 million as compared to Rs 105 million during FY20, a fall of 28.6%.
• Current assets rose 22% and stood at Rs 3 billion, while fixed assets fell 12% and stood at Rs 930 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 13%.

AVT NATURAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,749	3,103	12.9
Current Liabilities	Rs m	820	979	19.4
Long-term Debt	Rs m	105	75	-28.6
Total Liabilities	Rs m	3,776	4,256	12.7
Current assets	Rs m	2,722	3,326	22.2
Fixed Assets	Rs m	1,054	930	-11.7
Total Assets	Rs m	3,776	4,256	12.7

AVT NATURAL Cash Flow Statement Analysis

• AVT NATURAL's cash flow from operating activities (CFO) during FY21 stood at Rs 76 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -44 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -60 million, an improvement of 88% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -27 million from the Rs 68 million net cash flows seen during FY20.

AVT NATURAL 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	705	76	-89.2%
Cash Flow from Investing Activities	Rs m	-142	-44	-
Cash Flow from Financing Activities	Rs m	-496	-60	-
Net Cash Flow	Rs m	68	-27	-

Current Valuations for AVT NATURAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.0, stands at 15.1 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.9 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	26.0	31.9
TTM Earnings per share	Rs	2.2	3.0
Diluted earnings per share	Rs	2.2	3.0
Price to Cash Flow	x	7.5	9.9
TTM P/E ratio	x	10.6	15.1
Price / Book Value ratio	x	1.7	1.9
Market Cap	Rs m	4,766	6,008
Dividends per share (Unadj.)	Rs	0.6	0.7

Ratio Analysis for AVT NATURAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY21, from 3.3x 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 16.1x during FY21, from 9.1x 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 14.6% during FY21, from 12.4% 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 20.3% during FY21, from 17.6% 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 11.6% during FY21, from 10.5% 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	3.3	3.4
Debtors’ Days	Days	694	771
Interest coverage	x	9.1	16.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	11.6
Return on equity	%	12.4	14.6
Return on capital employed	%	17.6	20.3

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

AVT NATURAL Share Price Performance

Over the last one year, AVT NATURAL share price has moved up from Rs 23.7 to Rs 45.0, registering a gain of Rs 21.4 or around 90.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

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

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

Read: Latest Annual Report Analysis of AVT NATURAL