E.I.D. PARRY 2020-21 Annual Report Analysis

Wed, 31 Mar

E.I.D. PARRY 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.

E.I.D. PARRY Income Statement Analysis

• Operating income during the year rose 8.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY21 as against 11.0% in FY20.
• Depreciation charges increased by 4.0% and finance costs decreased by 45.3% YoY, respectively.
• Other income declined by 20.1% YoY.
• Net profit for the year grew by 12.0% YoY.
• Net profit margins during the year grew from 5.2% in FY20 to 5.4% in FY21.

E.I.D. PARRY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	171,289	186,268	8.7%
Other income	Rs m	1,302	1,041	-20.1%
Total Revenues	Rs m	172,592	187,309	8.5%
Gross profit	Rs m	18,878	20,005	6.0%
Depreciation	Rs m	3,190	3,317	4.0%
Interest	Rs m	4,305	2,356	-45.3%
Profit before tax	Rs m	12,686	15,372	21.2%
Tax	Rs m	3,774	5,395	43.0%
Profit after tax	Rs m	8,912	9,977	12.0%
Gross profit margin	%	11.0	10.7
Effective tax rate	%	29.7	35.1
Net profit margin	%	5.2	5.4

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E.I.D. PARRY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 57 billion as compared to Rs 86 billion in FY20, thereby witnessing an decrease of -33.1%.
• Long-term debt down at Rs 794 million as compared to Rs 6 billion during FY20, a fall of 87.0%.
• Current assets fell 15% and stood at Rs 89 billion, while fixed assets fell 2% and stood at Rs 44 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 133 billion as against Rs 149 billion during FY20, thereby witnessing a fall of 11%.

E.I.D. PARRY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	35,073	45,718	30.4
Current Liabilities	Rs m	85,900	57,450	-33.1
Long-term Debt	Rs m	6,100	794	-87.0
Total Liabilities	Rs m	149,357	132,565	-11.2
Current assets	Rs m	104,478	88,732	-15.1
Fixed Assets	Rs m	44,880	43,833	-2.3
Total Assets	Rs m	149,357	132,565	-11.2

E.I.D. PARRY Cash Flow Statement Analysis

• E.I.D. PARRY's cash flow from operating activities (CFO) during FY21 stood at Rs 48 billion, an improvement of 140.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 91.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -36 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 billion from the Rs -646 million net cash flows seen during FY20.

E.I.D. PARRY 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	19,860	47,710	140.2%
Cash Flow from Investing Activities	Rs m	-2,924	-5,600	-
Cash Flow from Financing Activities	Rs m	-17,690	-35,980	-
Net Cash Flow	Rs m	-646	6,250	-

Current Valuations for E.I.D. PARRY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.3, an improvement from the EPS of Rs 50.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 318.7, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.4 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	967.7	1,051.8
TTM Earnings per share	Rs	50.4	56.3
Diluted earnings per share	Rs	50.2	56.2
Price to Cash Flow	x	2.0	3.4
TTM P/E ratio	x	2.8	5.7
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	30,563	44,608
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for E.I.D. PARRY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.2x 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 7.5x during FY21, from 3.9x 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 21.8% during FY21, from 25.4% 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 38.1% during FY21, from 41.3% 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 9.3% during FY21, from 8.8% 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	1.2	1.5
Debtors’ Days	Days	451	169
Interest coverage	x	3.9	7.5
Debt to equity ratio	x	0.2	0.0
Return on assets	%	8.8	9.3
Return on equity	%	25.4	21.8
Return on capital employed	%	41.3	38.1

To see how E.I.D. PARRY has performed over the last 5 years, please visit here.

E.I.D. PARRY Share Price Performance

Over the last one year, E.I.D. PARRY share price has moved up from Rs 139.8 to Rs 318.7, registering a gain of Rs 179.0 or around 128.1%.

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

(To know more, check out historical annual results for E.I.D. PARRY and quarterly results for E.I.D. PARRY)

Read: Latest Annual Report Analysis of E.I.D. PARRY