EXIDE INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

EXIDE 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.

EXIDE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 5.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY21 as against 9.7% in FY20.
• Depreciation charges increased by 3.8% and finance costs increased by 41.3% YoY, respectively.
• Other income grew by 14.7% YoY.
• Net profit for the year grew by 5.3% YoY.
• Net profit margins during the year declined from 5.3% in FY20 to 5.3% in FY21.

EXIDE INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	144,710	152,969	5.7%
Other income	Rs m	979	1,122	14.7%
Total Revenues	Rs m	145,689	154,091	5.8%
Gross profit	Rs m	13,998	15,487	10.6%
Depreciation	Rs m	4,176	4,337	3.8%
Interest	Rs m	1,082	1,529	41.3%
Profit before tax	Rs m	9,719	10,744	10.5%
Tax	Rs m	2,094	2,713	29.6%
Profit after tax	Rs m	7,625	8,031	5.3%
Gross profit margin	%	9.7	10.1
Effective tax rate	%	21.5	25.3
Net profit margin	%	5.3	5.3

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EXIDE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 48 billion as compared to Rs 33 billion in FY20, thereby witnessing an increase of 47.8%.
• Long-term debt stood at Rs 856 million as compared to Rs 89 million during FY20, a growth of 867.0%.
• Current assets rose 16% and stood at Rs 63 billion, while fixed assets rose 18% and stood at Rs 224 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 287 billion as against Rs 244 billion during FY20, thereby witnessing a growth of 18%.

EXIDE INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	64,673	72,723	12.4
Current Liabilities	Rs m	32,516	48,048	47.8
Long-term Debt	Rs m	89	856	867.0
Total Liabilities	Rs m	243,515	286,772	17.8
Current assets	Rs m	54,100	62,559	15.6
Fixed Assets	Rs m	189,415	224,212	18.4
Total Assets	Rs m	243,515	286,772	17.8

EXIDE INDUSTRIES Cash Flow Statement Analysis

• EXIDE INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 23 billion, an improvement of 39.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -21 billion, an improvement of 89.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 110 million from the Rs -95 million net cash flows seen during FY20.

EXIDE 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	16,192	22,631	39.8%
Cash Flow from Investing Activities	Rs m	-10,969	-20,803	-
Cash Flow from Financing Activities	Rs m	-5,318	-1,700	-
Net Cash Flow	Rs m	-95	110	-

Current Valuations for EXIDE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 9.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 183.6, stands at 21.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	170.2	180.0
TTM Earnings per share	Rs	9.0	9.4
Diluted earnings per share	Rs	9.0	9.4
Price to Cash Flow	x	9.5	12.0
TTM P/E ratio	x	14.6	21.8
Price / Book Value ratio	x	2.3	2.0
Market Cap	Rs m	149,388	147,943
Dividends per share (Unadj.)	Rs	4.1	2.0

Ratio Analysis for EXIDE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 deteriorated and stood at 8.0x during FY21, from 10.0x 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 declined and down at 11.0% during FY21, from 11.8% 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 16.7% during FY21, from 16.7% 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 declined and down at 3.3% during FY21, from 3.6% 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	1.3
Debtors’ Days	Days	3	3
Interest coverage	x	10.0	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	3.3
Return on equity	%	11.8	11.0
Return on capital employed	%	16.7	16.7

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

EXIDE INDUSTRIES Share Price Performance

Over the last one year, EXIDE INDUSTRIES share price has moved up from Rs 131.3 to Rs 183.6, registering a gain of Rs 52.3 or around 39.8%.

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

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

Read: Latest Annual Report Analysis of EXIDE INDUSTRIES