DEEPAK NITRITE 2020-21 Annual Report Analysis

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DEEPAK NITRITE 2020-21 Annual Report Analysis
Thu, 12 Aug

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 14.3% in FY20 to 17.7% 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 % 14.3 17.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 2,129.8, stands at 29.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.3 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 38.7 31.3
TTM P/E ratio x 29.7 29.7
Price / Book Value ratio x 3.5 6.0
Market Cap Rs m 290,490 290,490
Dividends per share (Unadj.) Rs 4.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 599.9 to Rs 2,129.8, registering a gain of Rs 1,530.0 or around 255.1%.

Overall, the S&P BSE SENSEX is up 43.4% over the year.

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

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Related Views on News

DEEPAK NITRITE Announces Quarterly Results (1QFY22); Net Profit Up 205.8% (Quarterly Result Update)

Jul 31, 2021 | Updated on Jul 31, 2021

For the quarter ended June 2021, DEEPAK NITRITE has posted a net profit of Rs 3 bn (up 205.8% YoY). Sales on the other hand came in at Rs 15 bn (up 126.3% YoY). Read on for a complete analysis of DEEPAK NITRITE's quarterly results.

DEEPAK NITRITE Announces Quarterly Results (1QFY21); Net Profit Down 40.7% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, DEEPAK NITRITE has posted a net profit of Rs 636 m (down 40.7% YoY). Sales on the other hand came in at Rs 4 bn (down 36.3% YoY). Read on for a complete analysis of DEEPAK NITRITE's quarterly results.

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