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EPL 2020-21 Annual Report Analysis
Wed, 31 Mar

EPL 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.

EPL Income Statement Analysis

  • Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 8.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY21 as against 19.8% in FY20.
  • Depreciation charges increased by 2.1% and finance costs decreased by 22.8% YoY, respectively.
  • Other income grew by 9.0% YoY.
  • Net profit for the year grew by 15.6% YoY.
  • Net profit margins during the year grew from 7.7% in FY20 to 7.9% in FY21.

EPL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 27,614 30,916 12.0%
Other income Rs m 133 145 9.0%
Total Revenues Rs m 27,747 31,061 11.9%
Gross profit Rs m 5,481 5,950 8.6%
Depreciation Rs m 2,298 2,346 2.1%
Interest Rs m 556 429 -22.8%
Profit before tax Rs m 2,760 3,320 20.3%
Tax Rs m 638 868 36.1%
Profit after tax Rs m 2,122 2,452 15.6%
Gross profit margin % 19.8 19.2
Effective tax rate % 23.1 26.1
Net profit margin % 7.7 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EPL Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 8 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -2.4%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY20, a growth of 7.6%.
  • Current assets rose 0% and stood at Rs 13 billion, while fixed assets rose 13% and stood at Rs 17 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 30 billion as against Rs 28 billion during FY20, thereby witnessing a growth of 7%.

EPL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 15,323 16,837 9.9
 
Current Liabilities Rs m 7,923 7,731 -2.4
Long-term Debt Rs m 3,295 3,545 7.6
Total Liabilities Rs m 27,958 29,945 7.1
 
Current assets Rs m 13,403 13,440 0.3
Fixed Assets Rs m 14,555 16,505 13.4
Total Assets Rs m 27,958 29,945 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EPL Cash Flow Statement Analysis

  • EPL's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 10.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 135.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -751 million from the Rs 2 billion net cash flows seen during FY20.

EPL 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 4,711 5,224 10.9%
Cash Flow from Investing Activities Rs m -1,190 -2,805 -
Cash Flow from Financing Activities Rs m -1,419 -3,191 -
Net Cash Flow Rs m 2,212 -751 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EPL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.8, an improvement from the EPS of Rs 6.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 235.7, stands at 30.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.3 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 87.5 98.0
TTM Earnings per share Rs 6.7 7.8
Diluted earnings per share Rs 6.7 7.8
Price to Cash Flow x 11.0 15.3
TTM P/E ratio x 23.0 30.4
Price / Book Value ratio x 2.9 4.4
Market Cap Rs m 44,550 73,606
Dividends per share (Unadj.) Rs 3.3 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EPL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.7x 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 8.7x during FY21, from 6.0x 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 14.6% during FY21, from 13.8% 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 18.4% during FY21, from 17.8% 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 9.6% during FY21, from 9.6% 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 1.7 1.7
Debtors’ Days Days 65 70
Interest coverage x 6.0 8.7
Debt to equity ratio x 0.2 0.2
Return on assets % 9.6 9.6
Return on equity % 13.8 14.6
Return on capital employed % 17.8 18.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EPL Share Price Performance

Over the last one year, EPL share price has moved up from Rs 154.6 to Rs 235.7, registering a gain of Rs 81.1 or around 52.4%.

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

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

Annual Report FAQs

What is the current share price of EPL?

EPL currently trades at Rs 178.0 per share. You can check out the latest share price performance of EPL here...

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

The revenues of EPL stood at Rs 31,061 m in FY21, which was up 11.9% compared to Rs 27,747 m reported in FY20.

EPL's revenue has grown from Rs 22,519 m in FY17 to Rs 31,061 m in FY21.

Over the past 5 years, the revenue of EPL has grown at a CAGR of 8.4%.

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

The net profit of EPL stood at Rs 2,452 m in FY21, which was up 15.6% compared to Rs 2,122 m reported in FY20.

This compares to a net profit of Rs 1,901 m in FY19 and a net profit of Rs 1,753 m in FY18.

Over the past 5 years, EPL net profit has grown at a CAGR of 6.0%.

What does the cash flow statement of EPL 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 EPL reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 5,224 m as compared to Rs 4,711 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,805 m as compared to Rs -1,190 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -3,191 m as compared to Rs -1,419 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations3,6873,4353,5644,7115,224
From Investments-3,010-1,558-1,879-1,190-2,805
From Financial Activity-762-1,539-1,939-1,419-3,191
Net Cashflow133337-2542,212-751

What does the Key Ratio analysis of EPL 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 EPL reveals:

  • Operating profit margins witnessed a fall and stood at 19.2% in FY21 as against 19.8% in FY20.
  • Net profit margins grew from 7.7% in FY20 to 7.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)19.719.218.619.819.2
Net Profit Margin (%)8.87.37.07.77.9
Debt to Equity Ratio (x)0.60.40.30.20.2

Read: Latest Annual Report Analysis of EPL

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