MANGALAM ORGANICS 2020-21 Annual Report Analysis

Wed, 31 Mar

MANGALAM ORGANICS 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.

MANGALAM ORGANICS Income Statement Analysis

• Operating income during the year fell 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.8% in FY21 as against 20.3% in FY20.
• Depreciation charges increased by 50.8% and finance costs decreased by 80.8% YoY, respectively.
• Other income grew by 1.9% YoY.
• Net profit for the year grew by 77.1% YoY.
• Net profit margins during the year grew from 12.8% in FY20 to 25.1% in FY21.

MANGALAM ORGANICS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,745	3,382	-9.7%
Other income	Rs m	10	10	1.9%
Total Revenues	Rs m	3,756	3,393	-9.7%
Gross profit	Rs m	761	1,278	68.0%
Depreciation	Rs m	90	135	50.8%
Interest	Rs m	52	10	-80.8%
Profit before tax	Rs m	629	1,143	81.7%
Tax	Rs m	150	294	96.5%
Profit after tax	Rs m	479	849	77.1%
Gross profit margin	%	20.3	37.8
Effective tax rate	%	23.8	25.7
Net profit margin	%	12.8	25.1

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MANGALAM ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 536 million as compared to Rs 325 million in FY20, thereby witnessing an increase of 64.8%.
• Long-term debt down at Rs 0 million as compared to Rs 88 million during FY20, a fall of 99.7%.
• Current assets rose 78% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 45%.

MANGALAM ORGANICS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,679	2,517	49.9
Current Liabilities	Rs m	325	536	64.8
Long-term Debt	Rs m	88	0	-99.7
Total Liabilities	Rs m	2,149	3,113	44.9
Current assets	Rs m	1,069	1,903	78.0
Fixed Assets	Rs m	1,080	1,210	12.0
Total Assets	Rs m	2,149	3,113	44.9

MANGALAM ORGANICS Cash Flow Statement Analysis

• MANGALAM ORGANICS's cash flow from operating activities (CFO) during FY21 stood at Rs 263 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -281 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 23 million, an improvement of 106% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 million from the Rs -19 million net cash flows seen during FY20.

MANGALAM ORGANICS 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	933	263	-71.8%
Cash Flow from Investing Activities	Rs m	-593	-281	-
Cash Flow from Financing Activities	Rs m	-359	23	-
Net Cash Flow	Rs m	-19	4	-

Current Valuations for MANGALAM ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 99.2, an improvement from the EPS of Rs 56.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 517.9, stands at 5.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.5 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	437.5	395.1
TTM Earnings per share	Rs	56.0	99.2
Diluted earnings per share	Rs	56.0	99.1
Price to Cash Flow	x	2.7	3.5
TTM P/E ratio	x	3.0	5.2
Price / Book Value ratio	x	1.9	1.4
Market Cap	Rs m	3,147	3,444
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for MANGALAM ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.6x during FY21, from 3.3x 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 115.1x during FY21, from 13.1x 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 33.7% during FY21, from 28.6% 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 45.8% during FY21, from 38.6% 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 27.6% during FY21, from 24.7% 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	3.3	3.6
Debtors’ Days	Days	30,520,837	37,160,727
Interest coverage	x	13.1	115.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	24.7	27.6
Return on equity	%	28.6	33.7
Return on capital employed	%	38.6	45.8

To see how MANGALAM ORGANICS has performed over the last 5 years, please visit here.

MANGALAM ORGANICS Share Price Performance

Over the last one year, MANGALAM ORGANICS share price has moved up from Rs 177.9 to Rs 517.9, registering a gain of Rs 340.1 or around 191.2%.

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

(To know more, check out historical annual results for MANGALAM ORGANICS and quarterly results for MANGALAM ORGANICS)