DEEPAK FERTILISERS 2020-21 Annual Report Analysis

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DEEPAK FERTILISERS 2020-21 Annual Report Analysis
Tue, 26 Oct

DEEPAK FERTILISERS 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.

DEEPAK FERTILISERS Income Statement Analysis

  • Operating income during the year rose 24.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 105.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY21 as against 9.9% in FY20.
  • Depreciation charges decreased by 0.7% and finance costs decreased by 22.7% YoY, respectively.
  • Other income declined by 65.3% YoY.
  • Net profit for the year grew by 355.8% YoY.
  • Net profit margins during the year grew from 1.9% in FY20 to 7.0% in FY21.

DEEPAK FERTILISERS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 46,854 58,085 24.0%
Other income Rs m 955 332 -65.3%
Total Revenues Rs m 47,808 58,416 22.2%
Gross profit Rs m 4,643 9,548 105.7%
Depreciation Rs m 2,135 2,120 -0.7%
Interest Rs m 2,429 1,877 -22.7%
Profit before tax Rs m 1,033 5,883 469.8%
Tax Rs m 141 1,819 1,192.7%
Profit after tax Rs m 892 4,064 355.8%
Gross profit margin % 9.9 16.4
Effective tax rate % 13.6 30.9
Net profit margin % 1.9 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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DEEPAK FERTILISERS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 20 billion as compared to Rs 25 billion in FY20, thereby witnessing an decrease of -20.7%.
  • Long-term debt stood at Rs 22 billion as compared to Rs 21 billion during FY20, a growth of 4.9%.
  • Current assets rose 0% and stood at Rs 24 billion, while fixed assets rose 5% and stood at Rs 47 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 71 billion as against Rs 69 billion during FY20, thereby witnessing a growth of 3%.

DEEPAK FERTILISERS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 21,391 27,026 26.3
 
Current Liabilities Rs m 24,967 19,797 -20.7
Long-term Debt Rs m 20,843 21,866 4.9
Total Liabilities Rs m 68,853 70,962 3.1
 
Current assets Rs m 24,055 24,094 0.2
Fixed Assets Rs m 44,798 46,868 4.6
Total Assets Rs m 68,853 70,962 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DEEPAK FERTILISERS Cash Flow Statement Analysis

  • DEEPAK FERTILISERS's cash flow from operating activities (CFO) during FY21 stood at Rs 12 billion, an improvement of 115.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 300.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 105 million from the Rs 688 million net cash flows seen during FY20.

DEEPAK FERTILISERS 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 5,783 12,475 115.7%
Cash Flow from Investing Activities Rs m -1,557 -6,239 -
Cash Flow from Financing Activities Rs m -3,538 -6,131 -
Net Cash Flow Rs m 688 105 -84.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DEEPAK FERTILISERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an improvement from the EPS of Rs 10.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 412.2, stands at 10.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.9 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 524.8 565.7
TTM Earnings per share Rs 10.0 39.6
Diluted earnings per share Rs 8.6 39.4
Price to Cash Flow x 12.2 6.9
TTM P/E ratio x 8.8 10.2
Price / Book Value ratio x 0.5 0.6
Market Cap Rs m 36,799 42,494
Dividends per share (Unadj.) Rs 3.0 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DEEPAK FERTILISERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.0x 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 4.1x during FY21, from 1.4x 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 15.0% during FY21, from 4.2% 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 15.9% during FY21, from 8.2% 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 8.4% during FY21, from 4.8% 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 1.0 1.2
Debtors’ Days Days 994 569
Interest coverage x 1.4 4.1
Debt to equity ratio x 1.0 0.8
Return on assets % 4.8 8.4
Return on equity % 4.2 15.0
Return on capital employed % 8.2 15.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DEEPAK FERTILISERS has performed over the last 5 years, please visit here.

DEEPAK FERTILISERS Share Price Performance

Over the last one year, DEEPAK FERTILISERS share price has moved up from Rs 142.5 to Rs 412.2, registering a gain of Rs 269.7 or around 189.2%.

Overall, the S&P BSE SENSEX is up 51.2% over the year.

(To know more, check out historical annual results for DEEPAK FERTILISERS and quarterly results for DEEPAK FERTILISERS)

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Related Views on News

DEEPAK FERTILISERS Announces Quarterly Results (1QFY22); Net Profit Up 7.8% (Quarterly Result Update)

Aug 11, 2021 | Updated on Aug 11, 2021

For the quarter ended June 2021, DEEPAK FERTILISERS has posted a net profit of Rs 1 bn (up 7.8% YoY). Sales on the other hand came in at Rs 19 bn (up 37.6% YoY). Read on for a complete analysis of DEEPAK FERTILISERS's quarterly results.

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