BAJAJ HIND. SUGAR 2020-21 Annual Report Analysis

Wed, 31 Mar

BAJAJ HIND. SUGAR 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.

BAJAJ HIND. SUGAR Income Statement Analysis

• Operating income during the year fell 0.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 64.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.4% in FY21 as against 6.8% in FY20.
• Depreciation charges decreased by 0.3% and finance costs decreased by 12.4% YoY, respectively.
• Other income grew by 89.3% YoY.
• Net profit for the year grew by 481.6% YoY.
• Net profit margins during the year declined from 0.7% in FY20 to 4.4% in FY21.

BAJAJ HIND. SUGAR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	66,693	66,660	-0.1%
Other income	Rs m	120	227	89.3%
Total Revenues	Rs m	66,813	66,887	0.1%
Gross profit	Rs m	4,529	1,628	-64.0%
Depreciation	Rs m	2,164	2,157	-0.3%
Interest	Rs m	3,009	2,635	-12.4%
Profit before tax	Rs m	-524	-2,937	460.9%
Tax	Rs m	-24	-29	22.5%
Profit after tax	Rs m	-500	-2,908	481.6%
Gross profit margin	%	6.8	2.4
Effective tax rate	%	4.5	1.0
Net profit margin	%	-0.7	-4.4

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

BAJAJ HIND. SUGAR Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 53 billion as compared to Rs 50 billion in FY20, thereby witnessing an increase of 5.0%.
• Long-term debt down at Rs 48 billion as compared to Rs 51 billion during FY20, a fall of 6.6%.
• Current assets fell 2% and stood at Rs 58 billion, while fixed assets fell 4% and stood at Rs 73 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 131 billion as against Rs 136 billion during FY20, thereby witnessing a fall of 3%.

BAJAJ HIND. SUGAR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	26,971	23,722	-12.0
Current Liabilities	Rs m	50,031	52,532	5.0
Long-term Debt	Rs m	51,395	48,023	-6.6
Total Liabilities	Rs m	135,523	131,359	-3.1
Current assets	Rs m	59,413	57,932	-2.5
Fixed Assets	Rs m	76,110	73,427	-3.5
Total Assets	Rs m	135,523	131,359	-3.1

BAJAJ HIND. SUGAR Cash Flow Statement Analysis

• BAJAJ HIND. SUGAR's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 115 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -302 million from the Rs 501 million net cash flows seen during FY20.

BAJAJ HIND. SUGAR 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	9,103	3,398	-62.7%
Cash Flow from Investing Activities	Rs m	-214	115	-
Cash Flow from Financing Activities	Rs m	-8,388	-3,815	-
Net Cash Flow	Rs m	501	-302	-

Current Valuations for BAJAJ HIND. SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.6, an decline from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.2, stands at -2.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -8.2 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	60.6	60.6
TTM Earnings per share	Rs	-0.5	-2.6
Diluted earnings per share	Rs	-0.4	-2.3
Price to Cash Flow	x	2.1	-8.2
TTM P/E ratio	x	-6.9	-2.7
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	6,824	6,175
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ HIND. SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY21, from 1.2x 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 deteriorated and stood at -0.1x during FY21, from 0.8x 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 -12.3% during FY21, from -1.9% 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 -0.4% during FY21, from 3.2% 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 -0.2% during FY21, from 1.9% 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	1.2	1.1
Debtors’ Days	Days	1	1
Interest coverage	x	0.8	-0.1
Debt to equity ratio	x	1.9	2.0
Return on assets	%	1.9	-0.2
Return on equity	%	-1.9	-12.3
Return on capital employed	%	3.2	-0.4

To see how BAJAJ HIND. SUGAR has performed over the last 5 years, please visit here.

BAJAJ HIND. SUGAR Share Price Performance

Over the last one year, BAJAJ HIND. SUGAR share price has moved up from Rs 2.7 to Rs 6.2, registering a gain of Rs 3.5 or around 128.4%.

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

(To know more, check out historical annual results for BAJAJ HIND. SUGAR and quarterly results for BAJAJ HIND. SUGAR)

Read: Latest Annual Report Analysis of BAJAJ HIND. SUGAR