EPL 2020-21 Annual Report Analysis

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EPL 2020-21 Annual Report Analysis
Thu, 12 Aug

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 7.6% 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 % 7.6 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 238.9, stands at 29.0 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 15.7 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 17.1 15.7
TTM P/E ratio x 29.0 29.0
Price / Book Value ratio x 2.9 4.4
Market Cap Rs m 75,361 75,389
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 down from Rs 276.8 to Rs 238.9, registering a loss of Rs 37.9 or around 13.7%.

Overall, the S&P BSE SENSEX is up 43.5% over the year.

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

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Related Views on News

EPL Announces Quarterly Results (1QFY22); Net Profit Up 32.7% (Quarterly Result Update)

Jul 31, 2021 | Updated on Jul 31, 2021

For the quarter ended June 2021, EPL has posted a net profit of Rs 605 m (up 32.7% YoY). Sales on the other hand came in at Rs 8 bn (up 7.8% YoY). Read on for a complete analysis of EPL's quarterly results.

EPL Announces Quarterly Results (3QFY21); Net Profit Up 17.3% (Quarterly Result Update)

Feb 3, 2021 | Updated on Feb 3, 2021

For the quarter ended December 2020, EPL has posted a net profit of Rs 725 m (up 17.3% YoY). Sales on the other hand came in at Rs 8 bn (up 7.9% YoY). Read on for a complete analysis of EPL's quarterly results.

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