EVEREST INDUSTRIES 2020-21 Annual Report Analysis

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EVEREST INDUSTRIES 2020-21 Annual Report Analysis
Sat, 30 Oct

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 1.0% 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 % 1.0 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 425.7, stands at 11.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.1 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 17.9 8.1
TTM P/E ratio x 11.9 11.9
Price / Book Value ratio x 1.0 0.7
Market Cap Rs m 6,656 6,658
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 221.1 to Rs 425.7, registering a gain of Rs 204.6 or around 92.5%.

Overall, the S&P BSE SENSEX is up 48.6% over the year.

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

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