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ALANKIT 2020-21 Annual Report Analysis
Wed, 31 Mar

ALANKIT 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.

ALANKIT Income Statement Analysis

  • Operating income during the year fell 26.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY21 as against 15.3% in FY20.
  • Depreciation charges decreased by 16.4% and finance costs increased by 4.8% YoY, respectively.
  • Other income declined by 53.5% YoY.
  • Net profit for the year declined by 20.7% YoY.
  • Net profit margins during the year grew from 8.9% in FY20 to 9.6% in FY21.

ALANKIT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,561 1,150 -26.3%
Other income Rs m 74 34 -53.5%
Total Revenues Rs m 1,635 1,185 -27.6%
Gross profit Rs m 238 192 -19.6%
Depreciation Rs m 53 44 -16.4%
Interest Rs m 35 36 4.8%
Profit before tax Rs m 225 146 -35.3%
Tax Rs m 86 35 -59.1%
Profit after tax Rs m 140 111 -20.7%
Gross profit margin % 15.3 16.7
Effective tax rate % 38.0 24.0
Net profit margin % 8.9 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ALANKIT Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 369 million as compared to Rs 467 million in FY20, thereby witnessing an decrease of -21.1%.
  • Long-term debt stood at Rs 89 million as compared to Rs 76 million during FY20, a growth of 18.3%.
  • Current assets fell 8% and stood at Rs 907 million, while fixed assets rose 3% and stood at Rs 747 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a fall of 4%.

ALANKIT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 876 943 7.6
 
Current Liabilities Rs m 467 369 -21.1
Long-term Debt Rs m 76 89 18.3
Total Liabilities Rs m 1,716 1,654 -3.6
 
Current assets Rs m 987 907 -8.1
Fixed Assets Rs m 728 747 2.5
Total Assets Rs m 1,716 1,654 -3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALANKIT Cash Flow Statement Analysis

  • ALANKIT's cash flow from operating activities (CFO) during FY21 stood at Rs -23 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -27 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -30 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -79 million from the Rs -75 million net cash flows seen during FY20.

ALANKIT 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 -95 -23 -
Cash Flow from Investing Activities Rs m 41 -27 -
Cash Flow from Financing Activities Rs m -21 -30 -
Net Cash Flow Rs m -75 -79 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ALANKIT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 1.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 15.9, stands at 20.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.8 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 10.9 8.0
TTM Earnings per share Rs 1.0 0.8
Diluted earnings per share Rs 1.0 0.8
Price to Cash Flow x 7.9 14.8
TTM P/E ratio x 10.9 20.5
Price / Book Value ratio x 4.0 2.4
Market Cap Rs m 3,485 2,297
Dividends per share (Unadj.) Rs 0.2 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ALANKIT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.1x 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 deteriorated and stood at 5.0x during FY21, from 7.5x 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 11.7% during FY21, from 15.9% 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 17.6% during FY21, from 27.3% 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 declined and down at 8.9% during FY21, from 10.2% 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 2.1 2.5
Debtors’ Days Days 888 1,099
Interest coverage x 7.5 5.0
Debt to equity ratio x 0.1 0.1
Return on assets % 10.2 8.9
Return on equity % 15.9 11.7
Return on capital employed % 27.3 17.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ALANKIT Share Price Performance

Over the last one year, ALANKIT share price has moved up from Rs 10.6 to Rs 15.9, registering a gain of Rs 5.3 or around 49.5%.

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

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

Annual Report FAQs

What is the current share price of ALANKIT?

ALANKIT currently trades at Rs 17.8 per share. You can check out the latest share price performance of ALANKIT here...

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

The revenues of ALANKIT stood at Rs 1,185 m in FY21, which was down -27.6% compared to Rs 1,635 m reported in FY20.

ALANKIT's revenue has grown from Rs 868 m in FY17 to Rs 1,185 m in FY21.

Over the past 5 years, the revenue of ALANKIT has grown at a CAGR of 8.1%.

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

The net profit of ALANKIT stood at Rs 111 m in FY21, which was down -20.7% compared to Rs 140 m reported in FY20.

This compares to a net profit of Rs 140 m in FY19 and a net profit of Rs 217 m in FY18.

Over the past 5 years, ALANKIT net profit has grown at a CAGR of -4.4%.

What does the cash flow statement of ALANKIT 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 ALANKIT reveals:

  • Cash flow from operations increased in FY21 and stood at Rs -23 m as compared to Rs -95 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -27 m as compared to Rs 41 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -30 m as compared to Rs -21 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations18277186-95-23
From Investments-12-266-22241-27
From Financial Activity241141-21-30
Net Cashflow30224-75-79

What does the Key Ratio analysis of ALANKIT 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 ALANKIT reveals:

  • Operating profit margins witnessed a fall and down at 16.7% in FY21 as against 15.3% in FY20.
  • Net profit margins grew from 8.9% in FY20 to 9.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)25.127.515.815.316.7
Net Profit Margin (%)15.620.710.78.99.6
Debt to Equity Ratio (x)0.00.00.10.10.1

Read: Latest Annual Report Analysis of ALANKIT

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