ORIENTAL AROMATICS 2020-21 Annual Report Analysis

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ORIENTAL AROMATICS 2020-21 Annual Report Analysis
Mon, 8 Nov

ORIENTAL AROMATICS 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.

ORIENTAL AROMATICS Income Statement Analysis

  • Operating income during the year fell 6.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 22.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.9% in FY21 as against 16.7% in FY20.
  • Depreciation charges decreased by 8.2% and finance costs decreased by 80.6% YoY, respectively.
  • Other income declined by 75.9% YoY.
  • Net profit for the year grew by 18.3% YoY.
  • Net profit margins during the year grew from 11.2% in FY20 to 14.3% in FY21.

ORIENTAL AROMATICS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 7,599 7,088 -6.7%
Other income Rs m 69 17 -75.9%
Total Revenues Rs m 7,668 7,105 -7.3%
Gross profit Rs m 1,270 1,551 22.1%
Depreciation Rs m 190 175 -8.2%
Interest Rs m 119 23 -80.6%
Profit before tax Rs m 1,029 1,370 33.1%
Tax Rs m 167 350 109.6%
Profit after tax Rs m 862 1,019 18.3%
Gross profit margin % 16.7 21.9
Effective tax rate % 16.2 25.6
Net profit margin % 11.2 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ORIENTAL AROMATICS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 38.9%.
  • Current assets rose 32% and stood at Rs 5 billion, while fixed assets rose 9% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 22%.

ORIENTAL AROMATICS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,641 5,573 20.1
 
Current Liabilities Rs m 1,140 1,584 38.9
Long-term Debt Rs m 15 0 -100.0
Total Liabilities Rs m 6,083 7,450 22.5
 
Current assets Rs m 3,628 4,776 31.6
Fixed Assets Rs m 2,455 2,674 8.9
Total Assets Rs m 6,083 7,450 22.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ORIENTAL AROMATICS Cash Flow Statement Analysis

  • ORIENTAL AROMATICS's cash flow from operating activities (CFO) during FY21 stood at Rs 173 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -349 million, an improvement of 262.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 157 million, an improvement of 110% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -19 million from the Rs 123 million net cash flows seen during FY20.

ORIENTAL AROMATICS 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 1,809 173 -90.4%
Cash Flow from Investing Activities Rs m -96 -349 -
Cash Flow from Financing Activities Rs m -1,591 157 -
Net Cash Flow Rs m 123 -19 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ORIENTAL AROMATICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.3, an improvement from the EPS of Rs 25.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 798.5, stands at 28.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.5 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 225.8 210.6
TTM Earnings per share Rs 25.6 30.3
Diluted earnings per share Rs 25.6 30.3
Price to Cash Flow x 25.5 22.5
TTM P/E ratio x 28.6 28.6
Price / Book Value ratio x 1.3 2.5
Market Cap Rs m 26,872 26,872
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ORIENTAL AROMATICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY21, from 3.2x 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 improved and stood at 60.3x during FY21, from 9.6x 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 18.3% during FY21, from 18.6% 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 25.0% during FY21, from 24.7% 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 14.0% during FY21, from 16.1% 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 3.2 3.0
Debtors’ Days Days 727 971
Interest coverage x 9.6 60.3
Debt to equity ratio x 0.0 0.0
Return on assets % 16.1 14.0
Return on equity % 18.6 18.3
Return on capital employed % 24.7 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ORIENTAL AROMATICS has performed over the last 5 years, please visit here.

ORIENTAL AROMATICS Share Price Performance

Over the last one year, ORIENTAL AROMATICS share price has moved up from Rs 471.4 to Rs 798.5, registering a gain of Rs 327.2 or around 69.4%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

(To know more, check out historical annual results for ORIENTAL AROMATICS and quarterly results for ORIENTAL AROMATICS)

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