BERGER PAINTS 2020-21 Annual Report Analysis

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BERGER PAINTS 2020-21 Annual Report Analysis
Tue, 19 Oct

BERGER PAINTS 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.

BERGER PAINTS Income Statement Analysis

  • Operating income during the year rose 7.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY21 as against 16.7% in FY20.
  • Depreciation charges increased by 10.5% and finance costs decreased by 6.3% YoY, respectively.
  • Other income declined by 24.9% YoY.
  • Net profit for the year grew by 9.2% YoY.
  • Net profit margins during the year grew from 10.3% in FY20 to 10.6% in FY21.

BERGER PAINTS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 63,658 68,176 7.1%
Other income Rs m 685 515 -24.9%
Total Revenues Rs m 64,343 68,691 6.8%
Gross profit Rs m 10,610 11,880 12.0%
Depreciation Rs m 1,910 2,111 10.5%
Interest Rs m 470 441 -6.3%
Profit before tax Rs m 8,915 9,842 10.4%
Tax Rs m 2,271 2,589 14.0%
Profit after tax Rs m 6,644 7,253 9.2%
Gross profit margin % 16.7 17.4
Effective tax rate % 25.5 26.3
Net profit margin % 10.3 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BERGER PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 22 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 19.1%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 30.4%.
  • Current assets rose 34% and stood at Rs 36 billion, while fixed assets rose 10% and stood at Rs 40 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 76 billion as against Rs 63 billion during FY20, thereby witnessing a growth of 20%.

BERGER PAINTS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 26,579 33,743 27.0
 
Current Liabilities Rs m 18,240 21,719 19.1
Long-term Debt Rs m 2,434 1,695 -30.4
Total Liabilities Rs m 63,301 76,100 20.2
 
Current assets Rs m 27,039 36,276 34.2
Fixed Assets Rs m 36,263 39,824 9.8
Total Assets Rs m 63,301 76,100 20.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BERGER PAINTS Cash Flow Statement Analysis

  • BERGER PAINTS's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 9.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 104.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 41% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 573 million from the Rs 219 million net cash flows seen during FY20.

BERGER PAINTS 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 7,246 7,958 9.8%
Cash Flow from Investing Activities Rs m -2,234 -4,567 -
Cash Flow from Financing Activities Rs m -4,794 -2,818 -
Net Cash Flow Rs m 219 573 162.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BERGER PAINTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 6.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 835.6, stands at 95.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 18.1 times, while the price to sales ratio stands at 8.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 86.7 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 65.5 70.2
TTM Earnings per share Rs 6.8 7.5
Diluted earnings per share Rs 6.8 7.5
Price to Cash Flow x 94.9 86.7
TTM P/E ratio x 95.8 95.8
Price / Book Value ratio x 16.3 18.1
Market Cap Rs m 811,503 811,566
Dividends per share (Unadj.) Rs 2.2 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BERGER PAINTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x 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 23.3x during FY21, from 20.0x 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 declined and down at 21.5% during FY21, from 25.0% 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 29.0% during FY21, from 32.3% 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 10.1% during FY21, from 11.2% 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 1.7
Debtors’ Days Days 4 5
Interest coverage x 20.0 23.3
Debt to equity ratio x 0.1 0.1
Return on assets % 11.2 10.1
Return on equity % 25.0 21.5
Return on capital employed % 32.3 29.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how BERGER PAINTS has performed over the last 5 years, please visit here.

BERGER PAINTS Share Price Performance

Over the last one year, BERGER PAINTS share price has moved up from Rs 610.5 to Rs 835.6, registering a gain of Rs 225.1 or around 36.9%.

Overall, the S&P BSE SENSEX is up 52.1% over the year.

(To know more, check out historical annual results for BERGER PAINTS and quarterly results for BERGER PAINTS)

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Related Views on News

BERGER PAINTS Announces Quarterly Results (1QFY22); Net Profit Up 622.5% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, BERGER PAINTS has posted a net profit of Rs 1 bn (up 622.5% YoY). Sales on the other hand came in at Rs 18 bn (up 93.2% YoY). Read on for a complete analysis of BERGER PAINTS's quarterly results.

BERGER PAINTS Announces Quarterly Results (3QFY21); Net Profit Up 47.4% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, BERGER PAINTS has posted a net profit of Rs 3 bn (up 47.4% YoY). Sales on the other hand came in at Rs 21 bn (up 24.9% YoY). Read on for a complete analysis of BERGER PAINTS's quarterly results.

BERGER PAINTS 2019-20 Annual Report Analysis (Annual Result Update)

Oct 20, 2020 | Updated on Oct 20, 2020

Here's an analysis of the annual report of BERGER PAINTS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of BERGER PAINTS. Also includes updates on the valuation of BERGER PAINTS.

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