BOROSIL RENEWABLES 2020-21 Annual Report Analysis

Wed, 31 Mar

BOROSIL RENEWABLES 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.

BOROSIL RENEWABLES Income Statement Analysis

• Operating income during the year rose 85.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 441.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 39.3% in FY21 as against 13.4% in FY20.
• Depreciation charges increased by 31.1% and finance costs increased by 19.5% YoY, respectively.
• Other income grew by 48.8% YoY.
• Net profit for the year grew by 19689.2% YoY.
• Net profit margins during the year grew from 0.2% in FY20 to 17.8% in FY21.

BOROSIL RENEWABLES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,712	5,023	85.2%
Other income	Rs m	36	54	48.8%
Total Revenues	Rs m	2,748	5,076	84.8%
Gross profit	Rs m	364	1,974	441.7%
Depreciation	Rs m	321	421	31.1%
Interest	Rs m	67	80	19.5%
Profit before tax	Rs m	13	1,527	11,875.1%
Tax	Rs m	8	630	7,559.4%
Profit after tax	Rs m	5	896	19,689.2%
Gross profit margin	%	13.4	39.3
Effective tax rate	%	64.5	41.3
Net profit margin	%	0.2	17.8

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BOROSIL RENEWABLES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 847 million as compared to Rs 826 million in FY20, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 600 million as compared to Rs 768 million during FY20, a fall of 21.9%.
• Current assets rose 249% and stood at Rs 4 billion, while fixed assets fell 8% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 59%.

BOROSIL RENEWABLES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,231	6,120	89.4
Current Liabilities	Rs m	826	847	2.5
Long-term Debt	Rs m	768	600	-21.9
Total Liabilities	Rs m	4,938	7,829	58.5
Current assets	Rs m	1,280	4,470	249.3
Fixed Assets	Rs m	3,658	3,359	-8.2
Total Assets	Rs m	4,938	7,829	58.5

BOROSIL RENEWABLES Cash Flow Statement Analysis

• BOROSIL RENEWABLES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 514.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 446.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 391% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 14 million from the Rs 6 million net cash flows seen during FY20.

BOROSIL RENEWABLES 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	262	1,610	514.7%
Cash Flow from Investing Activities	Rs m	-607	-3,319	-
Cash Flow from Financing Activities	Rs m	351	1,722	390.7%
Net Cash Flow	Rs m	6	14	138.8%

Current Valuations for BOROSIL RENEWABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 246.3, stands at 35.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	23.8	38.6
TTM Earnings per share	Rs	0.0	6.9
Diluted earnings per share	Rs	0.0	6.9
Price to Cash Flow	x	14.9	17.6
TTM P/E ratio	x	11.1	35.8
Price / Book Value ratio	x	4.5	3.8
Market Cap	Rs m	14,380	23,165
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOROSIL RENEWABLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.3x during FY21, from 1.5x 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 20.2x during FY21, from 1.2x 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 0.1% 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 23.9% during FY21, from 2.0% 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 12.5% during FY21, from 1.4% 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	1.5	5.3
Debtors’ Days	Days	547	526
Interest coverage	x	1.2	20.2
Debt to equity ratio	x	0.2	0.1
Return on assets	%	1.4	12.5
Return on equity	%	0.1	14.6
Return on capital employed	%	2.0	23.9

To see how BOROSIL RENEWABLES has performed over the last 5 years, please visit here.

BOROSIL RENEWABLES Share Price Performance

Over the last one year, BOROSIL RENEWABLES share price has moved up from Rs 37.2 to Rs 246.3, registering a gain of Rs 209.1 or around 562.0%.

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

(To know more, check out historical annual results for BOROSIL RENEWABLES and quarterly results for BOROSIL RENEWABLES)

Read: Latest Annual Report Analysis of BOROSIL RENEWABLES