ORIENTAL CARBON 2020-21 Annual Report Analysis

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ORIENTAL CARBON 2020-21 Annual Report Analysis
Mon, 15 Nov

ORIENTAL CARBON 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 CARBON Income Statement Analysis

  • Operating income during the year fell 3.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.1% in FY21 as against 26.6% in FY20.
  • Depreciation charges increased by 2.9% and finance costs decreased by 31.6% YoY, respectively.
  • Other income grew by 19.5% YoY.
  • Net profit for the year grew by 11.0% YoY.
  • Net profit margins during the year grew from 18.8% in FY20 to 21.5% in FY21.

ORIENTAL CARBON Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 3,868 3,739 -3.3%
Other income Rs m 106 126 19.5%
Total Revenues Rs m 3,974 3,865 -2.7%
Gross profit Rs m 1,030 1,164 12.9%
Depreciation Rs m 214 221 2.9%
Interest Rs m 96 65 -31.6%
Profit before tax Rs m 826 1,004 21.5%
Tax Rs m 78 174 122.2%
Profit after tax Rs m 748 830 11.0%
Gross profit margin % 26.6 31.1
Effective tax rate % 9.5 17.3
Net profit margin % 18.8 21.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ORIENTAL CARBON Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 954 million in FY20, thereby witnessing an increase of 29.2%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 963 million during FY20, a growth of 17.3%.
  • Current assets rose 13% and stood at Rs 3 billion, while fixed assets rose 19% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 17%.

ORIENTAL CARBON Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,646 5,332 14.8
 
Current Liabilities Rs m 954 1,232 29.2
Long-term Debt Rs m 963 1,129 17.3
Total Liabilities Rs m 6,972 8,139 16.7
 
Current assets Rs m 2,754 3,104 12.7
Fixed Assets Rs m 4,218 5,035 19.4
Total Assets Rs m 6,972 8,139 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ORIENTAL CARBON Cash Flow Statement Analysis

  • ORIENTAL CARBON's cash flow from operating activities (CFO) during FY21 stood at Rs 912 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 50.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 161 million, an improvement of 263% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -212 million from the Rs 196 million net cash flows seen during FY20.

ORIENTAL CARBON 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 1,146 912 -20.4%
Cash Flow from Investing Activities Rs m -852 -1,285 -
Cash Flow from Financing Activities Rs m -98 161 -
Net Cash Flow Rs m 196 -212 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ORIENTAL CARBON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.1, an improvement from the EPS of Rs 74.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,029.9, stands at 11.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.8 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 387.2 374.2
TTM Earnings per share Rs 74.8 83.1
Diluted earnings per share Rs 74.8 83.1
Price to Cash Flow x 10.7 9.8
TTM P/E ratio x 11.7 11.7
Price / Book Value ratio x 1.8 1.5
Market Cap Rs m 10,289 10,289
Dividends per share (Unadj.) Rs 10.0 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ORIENTAL CARBON

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY21, from 2.9x 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 16.3x 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 15.6% during FY21, from 16.1% 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 16.6% during FY21, from 16.4% 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 11.0% during FY21, from 12.1% 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 2.9 2.5
Debtors’ Days Days 673 787
Interest coverage x 9.6 16.3
Debt to equity ratio x 0.2 0.2
Return on assets % 12.1 11.0
Return on equity % 16.1 15.6
Return on capital employed % 16.4 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ORIENTAL CARBON Share Price Performance

Over the last one year, ORIENTAL CARBON share price has moved up from Rs 790.8 to Rs 1,029.9, registering a gain of Rs 239.2 or around 30.2%.

Overall, the S&P BSE SENSEX is up 39.2% over the year.

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

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