DEEPAK NITRITE 2020-21 Annual Report Analysis

Wed, 31 Mar

DEEPAK NITRITE 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 NITRITE Income Statement Analysis

• Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.5% in FY21 as against 24.3% in FY20.
• Depreciation charges increased by 9.2% and finance costs decreased by 34.4% YoY, respectively.
• Other income declined by 23.9% YoY.
• Net profit for the year grew by 27.0% YoY.
• Net profit margins during the year grew from 14.4% in FY20 to 17.8% in FY21.

DEEPAK NITRITE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	42,297	43,598	3.1%
Other income	Rs m	356	271	-23.9%
Total Revenues	Rs m	42,653	43,869	2.8%
Gross profit	Rs m	10,285	12,446	21.0%
Depreciation	Rs m	1,397	1,526	9.2%
Interest	Rs m	1,180	773	-34.4%
Profit before tax	Rs m	8,064	10,417	29.2%
Tax	Rs m	1,954	2,659	36.1%
Profit after tax	Rs m	6,110	7,758	27.0%
Gross profit margin	%	24.3	28.5
Effective tax rate	%	24.2	25.5
Net profit margin	%	14.4	17.8

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DEEPAK NITRITE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 7 billion in FY20, thereby witnessing an decrease of -26.1%.
• Long-term debt down at Rs 5 billion as compared to Rs 8 billion during FY20, a fall of 32.8%.
• Current assets rose 26% and stood at Rs 15 billion, while fixed assets rose 3% and stood at Rs 21 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 32 billion during FY20, thereby witnessing a growth of 11%.

DEEPAK NITRITE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,719	23,467	49.3
Current Liabilities	Rs m	7,490	5,535	-26.1
Long-term Debt	Rs m	7,794	5,240	-32.8
Total Liabilities	Rs m	32,086	35,603	11.0
Current assets	Rs m	11,563	14,522	25.6
Fixed Assets	Rs m	20,523	21,081	2.7
Total Assets	Rs m	32,086	35,603	11.0

DEEPAK NITRITE Cash Flow Statement Analysis

• DEEPAK NITRITE's cash flow from operating activities (CFO) during FY21 stood at Rs 10 billion, an improvement of 30.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion 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 68 million from the Rs -8 million net cash flows seen during FY20.

DEEPAK NITRITE 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	7,647	9,990	30.7%
Cash Flow from Investing Activities	Rs m	-4,279	-3,962	-
Cash Flow from Financing Activities	Rs m	-3,376	-5,961	-
Net Cash Flow	Rs m	-8	68	-

Current Valuations for DEEPAK NITRITE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.9, an improvement from the EPS of Rs 44.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,657.0, stands at 29.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.1 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	310.1	319.7
TTM Earnings per share	Rs	44.8	56.9
Diluted earnings per share	Rs	44.8	56.9
Price to Cash Flow	x	7.0	15.1
TTM P/E ratio	x	8.6	29.1
Price / Book Value ratio	x	3.5	6.0
Market Cap	Rs m	54,448	140,625
Dividends per share (Unadj.)	Rs	4.5	5.5

Ratio Analysis for DEEPAK NITRITE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x 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 14.5x during FY21, from 7.8x 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 33.1% during FY21, from 38.9% 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 39.0% during FY21, from 39.3% 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 improved and stood at 24.0% during FY21, from 22.7% 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	2.6
Debtors’ Days	Days	5	6
Interest coverage	x	7.8	14.5
Debt to equity ratio	x	0.5	0.2
Return on assets	%	22.7	24.0
Return on equity	%	38.9	33.1
Return on capital employed	%	39.3	39.0

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

DEEPAK NITRITE Share Price Performance

Over the last one year, DEEPAK NITRITE share price has moved up from Rs 386.6 to Rs 1,657.0, registering a gain of Rs 1,270.4 or around 328.6%.

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

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

Read: Latest Annual Report Analysis of DEEPAK NITRITE