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ORIENTAL CARBON 2020-21 Annual Report Analysis
Wed, 31 Mar

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 19.3% in FY20 to 22.2% 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 % 19.3 22.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Discover: Safe Stocks for the Electric Future

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 917.1, stands at 11.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.5 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 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 5.8 7.5
TTM P/E ratio x 7.5 11.0
Price / Book Value ratio x 1.8 1.5
Market Cap Rs m 8,342 7,882
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 559.3 to Rs 917.1, registering a gain of Rs 357.8 or around 64.0%.

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

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

Annual Report FAQs

What is the current share price of ORIENTAL CARBON?

ORIENTAL CARBON currently trades at Rs 743.0 per share. You can check out the latest share price performance of ORIENTAL CARBON here...

What was the revenue of ORIENTAL CARBON in FY21? How does it compare to earlier years?

The revenues of ORIENTAL CARBON stood at Rs 3,865 m in FY21, which was down -2.7% compared to Rs 3,974 m reported in FY20.

ORIENTAL CARBON's revenue has grown from Rs 3,187 m in FY17 to Rs 3,865 m in FY21.

Over the past 5 years, the revenue of ORIENTAL CARBON has grown at a CAGR of 4.9%.

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

The net profit of ORIENTAL CARBON stood at Rs 830 m in FY21, which was up 11.0% compared to Rs 748 m reported in FY20.

This compares to a net profit of Rs 765 m in FY19 and a net profit of Rs 569 m in FY18.

Over the past 5 years, ORIENTAL CARBON net profit has grown at a CAGR of 14.5%.

What does the cash flow statement of ORIENTAL CARBON 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 ORIENTAL CARBON reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 912 m as compared to Rs 1,146 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -1,285 m as compared to Rs -852 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 161 m as compared to Rs -98 m in FY20.

Here's the cash flow statement of ORIENTAL CARBON for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations8159379331,146912
From Investments-820-740-493-852-1,285
From Financial Activity-15-121-499-98161
Net Cashflow-2076-59196-212

What does the Key Ratio analysis of ORIENTAL CARBON 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 ORIENTAL CARBON reveals:

  • Operating profit margins witnessed a fall and down at 31.1% in FY21 as against 26.6% in FY20.
  • Net profit margins grew from 19.3% in FY20 to 22.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of ORIENTAL CARBON for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)27.927.928.626.631.1
Net Profit Margin (%)15.415.617.719.322.2
Debt to Equity Ratio (x)0.20.20.20.20.2

Read: Latest Annual Report Analysis of ORIENTAL CARBON

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