EVEREST KANTO CYLINDER 2020-21 Annual Report Analysis

Wed, 31 Mar

EVEREST KANTO CYLINDER 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.

EVEREST KANTO CYLINDER Income Statement Analysis

• Operating income during the year rose 24.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 127.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY21 as against 11.4% in FY20.
• Depreciation charges decreased by 18.4% and finance costs decreased by 25.5% YoY, respectively.
• Other income grew by 73.0% YoY.
• Net profit for the year grew by 4097.2% YoY.
• Net profit margins during the year grew from 0.3% in FY20 to 9.5% in FY21.

EVEREST KANTO CYLINDER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,609	9,491	24.7%
Other income	Rs m	72	125	73.0%
Total Revenues	Rs m	7,681	9,616	25.2%
Gross profit	Rs m	868	1,969	127.0%
Depreciation	Rs m	433	354	-18.4%
Interest	Rs m	382	285	-25.5%
Profit before tax	Rs m	124	1,456	1,073.3%
Tax	Rs m	103	556	442.0%
Profit after tax	Rs m	21	899	4,097.2%
Gross profit margin	%	11.4	20.8
Effective tax rate	%	82.7	38.2
Net profit margin	%	0.3	9.5

EVEREST KANTO CYLINDER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 4 billion in FY20, thereby witnessing an decrease of -19.7%.
• Long-term debt stood at Rs 568 million as compared to Rs 526 million during FY20, a growth of 8.1%.
• Current assets rose 3% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 4%.

EVEREST KANTO CYLINDER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,385	6,283	16.7
Current Liabilities	Rs m	4,078	3,274	-19.7
Long-term Debt	Rs m	526	568	8.1
Total Liabilities	Rs m	9,857	10,238	3.9
Current assets	Rs m	5,936	6,127	3.2
Fixed Assets	Rs m	3,921	4,111	4.8
Total Assets	Rs m	9,857	10,238	3.9

EVEREST KANTO CYLINDER Cash Flow Statement Analysis

• EVEREST KANTO CYLINDER's cash flow from operating activities (CFO) during FY21 stood at Rs 853 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 745 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 419 million from the Rs 73 million net cash flows seen during FY20.

EVEREST KANTO CYLINDER 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	1,069	853	-20.2%
Cash Flow from Investing Activities	Rs m	-182	745	-
Cash Flow from Financing Activities	Rs m	-817	-1,180	-
Net Cash Flow	Rs m	73	419	474.7%

Current Valuations for EVEREST KANTO CYLINDER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.3, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 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	67.8	84.6
TTM Earnings per share	Rs	0.2	8.0
Diluted earnings per share	Rs	0.2	8.0
Price to Cash Flow	x	2.7	4.4
TTM P/E ratio	x	13.3	9.6
Price / Book Value ratio	x	0.4	0.9
Market Cap	Rs m	2,387	5,571
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for EVEREST KANTO CYLINDER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 6.1x during FY21, from 1.3x 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 14.3% during FY21, from 0.4% 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 improved and stood at 25.4% during FY21, from 8.6% 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 11.6% during FY21, from 4.1% 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	1.9
Debtors’ Days	Days	568	628
Interest coverage	x	1.3	6.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.1	11.6
Return on equity	%	0.4	14.3
Return on capital employed	%	8.6	25.4

To see how EVEREST KANTO CYLINDER has performed over the last 5 years, please visit here.

EVEREST KANTO CYLINDER Share Price Performance

Over the last one year, EVEREST KANTO CYLINDER share price has moved up from Rs 10.9 to Rs 78.3, registering a gain of Rs 67.5 or around 621.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for EVEREST KANTO CYLINDER and quarterly results for EVEREST KANTO CYLINDER)

Read: Latest Annual Report Analysis of EVEREST KANTO CYLINDER