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BANCO PRODUCTS 2020-21 Annual Report Analysis
Wed, 31 Mar

BANCO PRODUCTS 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.

BANCO PRODUCTS Income Statement Analysis

  • Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 45.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY21 as against 8.6% in FY20.
  • Depreciation charges increased by 2.8% and finance costs increased by 16.9% YoY, respectively.
  • Other income declined by 64.1% YoY.
  • Net profit for the year grew by 48.5% YoY.
  • Net profit margins during the year grew from 5.4% in FY20 to 7.4% in FY21.

BANCO PRODUCTS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 14,221 15,326 7.8%
Other income Rs m 252 90 -64.1%
Total Revenues Rs m 14,472 15,416 6.5%
Gross profit Rs m 1,222 1,781 45.8%
Depreciation Rs m 328 337 2.8%
Interest Rs m 31 36 16.9%
Profit before tax Rs m 1,115 1,498 34.4%
Tax Rs m 349 361 3.5%
Profit after tax Rs m 766 1,137 48.5%
Gross profit margin % 8.6 11.6
Effective tax rate % 31.3 24.1
Net profit margin % 5.4 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BANCO PRODUCTS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -3.6%.
  • Long-term debt down at Rs 59 million as compared to Rs 62 million during FY20, a fall of 4.7%.
  • Current assets rose 15% and stood at Rs 10 billion, while fixed assets fell 12% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 9%.

BANCO PRODUCTS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,100 8,284 16.7
 
Current Liabilities Rs m 3,182 3,068 -3.6
Long-term Debt Rs m 62 59 -4.7
Total Liabilities Rs m 10,885 11,867 9.0
 
Current assets Rs m 8,578 9,838 14.7
Fixed Assets Rs m 2,308 2,029 -12.1
Total Assets Rs m 10,885 11,867 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BANCO PRODUCTS Cash Flow Statement Analysis

  • BANCO PRODUCTS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 200.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -587 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -782 million, an improvement of 49% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 199 million from the Rs 491 million net cash flows seen during FY20.

BANCO PRODUCTS 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 521 1,568 200.9%
Cash Flow from Investing Activities Rs m 1,495 -587 -
Cash Flow from Financing Activities Rs m -1,525 -782 -
Net Cash Flow Rs m 491 199 -59.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BANCO PRODUCTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.9, an improvement from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 140.6, stands at 8.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.7 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 198.8 214.3
TTM Earnings per share Rs 10.7 15.9
Diluted earnings per share Rs 10.7 15.9
Price to Cash Flow x 4.3 5.7
TTM P/E ratio x 6.1 8.8
Price / Book Value ratio x 1.1 1.0
Market Cap Rs m 7,681 8,400
Dividends per share (Unadj.) Rs 20.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BANCO PRODUCTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.2x during FY21, from 2.7x 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 42.4x during FY21, from 37.0x 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 13.7% during FY21, from 10.8% 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 18.4% during FY21, from 16.0% 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 9.9% during FY21, from 7.3% 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 2.7 3.2
Debtors’ Days Days 754 644
Interest coverage x 37.0 42.4
Debt to equity ratio x 0.0 0.0
Return on assets % 7.3 9.9
Return on equity % 10.8 13.7
Return on capital employed % 16.0 18.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BANCO PRODUCTS Share Price Performance

Over the last one year, BANCO PRODUCTS share price has moved up from Rs 65.1 to Rs 140.6, registering a gain of Rs 75.5 or around 116.0%.

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

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

Annual Report FAQs

What is the current share price of BANCO PRODUCTS?

BANCO PRODUCTS currently trades at Rs 594.8 per share. You can check out the latest share price performance of BANCO PRODUCTS here...

What was the revenue of BANCO PRODUCTS in FY21? How does it compare to earlier years?

The revenues of BANCO PRODUCTS stood at Rs 15,416 m in FY21, which was up 6.5% compared to Rs 14,472 m reported in FY20.

BANCO PRODUCTS' revenue has grown from Rs 12,097 m in FY17 to Rs 15,416 m in FY21.

Over the past 5 years, the revenue of BANCO PRODUCTS has grown at a CAGR of 6.2%.

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

The net profit of BANCO PRODUCTS stood at Rs 1,137 m in FY21, which was up 48.5% compared to Rs 766 m reported in FY20.

This compares to a net profit of Rs 691 m in FY19 and a net profit of Rs 1,168 m in FY18.

Over the past 5 years, BANCO PRODUCTS net profit has grown at a CAGR of 4.0%.

What does the cash flow statement of BANCO PRODUCTS 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 BANCO PRODUCTS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 1,568 m as compared to Rs 521 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -587 m as compared to Rs 1,495 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -782 m as compared to Rs -1,525 m in FY20.

Here's the cash flow statement of BANCO PRODUCTS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations9039906245211,568
From Investments-587-222-5161,495-587
From Financial Activity-615-679-494-1,525-782
Net Cashflow-29889-386491199

What does the Key Ratio analysis of BANCO PRODUCTS 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 BANCO PRODUCTS reveals:

  • Operating profit margins witnessed a fall and down at 11.6% in FY21 as against 8.6% in FY20.
  • Net profit margins grew from 5.4% in FY20 to 7.4% 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 BANCO PRODUCTS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)12.210.310.18.611.6
Net Profit Margin (%)8.38.84.35.47.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BANCO PRODUCTS

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