EXCEL INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

EXCEL 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.

EXCEL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY21 as against 18.5% in FY20.
• Depreciation charges increased by 19.2% and finance costs decreased by 20.4% YoY, respectively.
• Other income declined by 17.9% YoY.
• Net profit for the year declined by 26.0% YoY.
• Net profit margins during the year declined from 13.7% in FY20 to 9.5% in FY21.

EXCEL INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,025	7,495	6.7%
Other income	Rs m	115	94	-17.9%
Total Revenues	Rs m	7,139	7,589	6.3%
Gross profit	Rs m	1,300	1,216	-6.5%
Depreciation	Rs m	228	272	19.2%
Interest	Rs m	38	30	-20.4%
Profit before tax	Rs m	1,149	1,008	-12.3%
Tax	Rs m	188	297	57.8%
Profit after tax	Rs m	961	711	-26.0%
Gross profit margin	%	18.5	16.2
Effective tax rate	%	16.4	29.5
Net profit margin	%	13.7	9.5

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EXCEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 6.3%.
• Long-term debt down at Rs 0 million as compared to Rs 0 million during FY20, a fall of 71.4%.
• Current assets rose 17% and stood at Rs 3 billion, while fixed assets rose 19% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 11 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 19%.

EXCEL INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,009	8,515	21.5
Current Liabilities	Rs m	1,481	1,574	6.3
Long-term Debt	Rs m	0	0	-71.4
Total Liabilities	Rs m	9,373	11,111	18.5
Current assets	Rs m	2,802	3,292	17.5
Fixed Assets	Rs m	6,571	7,820	19.0
Total Assets	Rs m	9,373	11,111	18.5

EXCEL INDUSTRIES Cash Flow Statement Analysis

• EXCEL INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 909 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -526 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -168 million, an improvement of 46% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 214 million from the Rs 173 million net cash flows seen during FY20.

EXCEL 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	1,102	909	-17.5%
Cash Flow from Investing Activities	Rs m	-614	-526	-
Cash Flow from Financing Activities	Rs m	-315	-168	-
Net Cash Flow	Rs m	173	214	23.6%

Current Valuations for EXCEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.6, an decline from the EPS of Rs 76.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 841.0, stands at 16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	558.9	596.2
TTM Earnings per share	Rs	76.4	56.6
Diluted earnings per share	Rs	76.4	56.5
Price to Cash Flow	x	4.7	9.2
TTM P/E ratio	x	5.8	16.8
Price / Book Value ratio	x	1.4	1.1
Market Cap	Rs m	10,091	9,051
Dividends per share (Unadj.)	Rs	10.0	11.3

Ratio Analysis for EXCEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.9x 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 34.3x during FY21, from 31.3x 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 declined and down at 8.3% during FY21, from 13.7% 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 declined and down at 12.2% during FY21, from 16.9% 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 declined and down at 6.7% during FY21, from 10.7% 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	1.9	2.1
Debtors’ Days	Days	778	841
Interest coverage	x	31.3	34.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.7	6.7
Return on equity	%	13.7	8.3
Return on capital employed	%	16.9	12.2

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

EXCEL INDUSTRIES Share Price Performance

Over the last one year, EXCEL INDUSTRIES share price has moved up from Rs 447.1 to Rs 841.0, registering a gain of Rs 393.9 or around 88.1%.

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

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

Read: Latest Annual Report Analysis of EXCEL INDUSTRIES