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EVEREST INDUSTRIES 2020-21 Annual Report Analysis
Wed, 31 Mar

EVEREST INDUSTRIES 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 INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 165.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY21 as against 3.3% in FY20.
  • Depreciation charges increased by 6.7% and finance costs decreased by 44.6% YoY, respectively.
  • Other income declined by 6.0% YoY.
  • Net profit for the year grew by 317.0% YoY.
  • Net profit margins during the year grew from 1.1% in FY20 to 4.6% in FY21.

EVEREST INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 12,854 12,179 -5.3%
Other income Rs m 95 89 -6.0%
Total Revenues Rs m 12,949 12,268 -5.3%
Gross profit Rs m 422 1,120 165.3%
Depreciation Rs m 237 253 6.7%
Interest Rs m 70 39 -44.6%
Profit before tax Rs m 209 916 339.0%
Tax Rs m 74 352 379.4%
Profit after tax Rs m 135 564 317.0%
Gross profit margin % 3.3 9.2
Effective tax rate % 35.2 38.5
Net profit margin % 1.1 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EVEREST INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 40.9%.
  • Current assets rose 28% and stood at Rs 5 billion, while fixed assets fell 11% and stood at Rs 5 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 6%.

EVEREST INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,454 5,037 13.1
 
Current Liabilities Rs m 3,191 4,497 40.9
Long-term Debt Rs m 452 0 -100.0
Total Liabilities Rs m 9,853 10,419 5.7
 
Current assets Rs m 4,261 5,453 28.0
Fixed Assets Rs m 5,592 4,966 -11.2
Total Assets Rs m 9,853 10,419 5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EVEREST INDUSTRIES Cash Flow Statement Analysis

  • EVEREST INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 374.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 444.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -794 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 448 million from the Rs -159 million net cash flows seen during FY20.

EVEREST INDUSTRIES 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 556 2,639 374.7%
Cash Flow from Investing Activities Rs m -257 -1,397 -
Cash Flow from Financing Activities Rs m -458 -794 -
Net Cash Flow Rs m -159 448 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EVEREST INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.1, an improvement from the EPS of Rs 8.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 286.4, stands at 8.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.6 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 821.9 778.7
TTM Earnings per share Rs 8.6 36.1
Diluted earnings per share Rs 8.6 36.0
Price to Cash Flow x 5.6 4.6
TTM P/E ratio x 7.1 8.0
Price / Book Value ratio x 1.0 0.7
Market Cap Rs m 4,652 3,737
Dividends per share (Unadj.) Rs 1.0 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EVEREST INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.3x 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 24.5x during FY21, from 4.0x 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 11.2% during FY21, from 3.0% 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 19.0% during FY21, from 5.7% 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 5.8% during FY21, from 2.1% 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 1.3 1.2
Debtors’ Days Days 191 171
Interest coverage x 4.0 24.5
Debt to equity ratio x 0.1 0.0
Return on assets % 2.1 5.8
Return on equity % 3.0 11.2
Return on capital employed % 5.7 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EVEREST INDUSTRIES Share Price Performance

Over the last one year, EVEREST INDUSTRIES share price has moved up from Rs 132.7 to Rs 286.4, registering a gain of Rs 153.8 or around 115.9%.

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

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

Annual Report FAQs

What is the current share price of EVEREST INDUSTRIES?

EVEREST INDUSTRIES currently trades at Rs 1,040.1 per share. You can check out the latest share price performance of EVEREST INDUSTRIES here...

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

The revenues of EVEREST INDUSTRIES stood at Rs 12,268 m in FY21, which was down -5.3% compared to Rs 12,949 m reported in FY20.

EVEREST INDUSTRIES' revenue has grown from Rs 10,886 m in FY17 to Rs 12,268 m in FY21.

Over the past 5 years, the revenue of EVEREST INDUSTRIES has grown at a CAGR of 3.0%.

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

The net profit of EVEREST INDUSTRIES stood at Rs 564 m in FY21, which was up 317.0% compared to Rs 135 m reported in FY20.

This compares to a net profit of Rs 619 m in FY19 and a net profit of Rs 531 m in FY18.

Over the past 5 years, EVEREST INDUSTRIES net profit has grown at a CAGR of 107.9%.

What does the cash flow statement of EVEREST INDUSTRIES 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 EVEREST INDUSTRIES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,639 m as compared to Rs 556 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -1,397 m as compared to Rs -257 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -794 m as compared to Rs -458 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations5831,4813465562,639
From Investments-186-157-223-257-1,397
From Financial Activity-864-1,230-160-458-794
Net Cashflow-46794-36-159448

What does the Key Ratio analysis of EVEREST INDUSTRIES 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 EVEREST INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and down at 9.2% in FY21 as against 3.3% in FY20.
  • Net profit margins grew from 1.1% in FY20 to 4.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)3.97.27.43.39.2
Net Profit Margin (%)0.34.34.41.14.6
Debt to Equity Ratio (x)0.30.10.10.10.0

Read: Latest Annual Report Analysis of EVEREST INDUSTRIES

 

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