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FINEOTEX CHEMICAL 2020-21 Annual Report Analysis
Wed, 31 Mar

FINEOTEX CHEMICAL 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.

FINEOTEX CHEMICAL Income Statement Analysis

  • Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 83.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.6% in FY21 as against 11.3% in FY20.
  • Depreciation charges increased by 26.2% and finance costs increased by 14.9% YoY, respectively.
  • Other income grew by 987.3% YoY.
  • Net profit for the year grew by 211.4% YoY.
  • Net profit margins during the year grew from 7.3% in FY20 to 20.4% in FY21.

FINEOTEX CHEMICAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,963 2,185 11.3%
Other income Rs m 16 175 987.3%
Total Revenues Rs m 1,979 2,360 19.2%
Gross profit Rs m 222 406 83.1%
Depreciation Rs m 12 15 26.2%
Interest Rs m 6 7 14.9%
Profit before tax Rs m 220 559 154.4%
Tax Rs m 77 113 47.8%
Profit after tax Rs m 143 446 211.4%
Gross profit margin % 11.3 18.6
Effective tax rate % 34.8 20.2
Net profit margin % 7.3 20.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

FINEOTEX CHEMICAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 497 million as compared to Rs 313 million in FY20, thereby witnessing an increase of 58.8%.
  • Current assets rose 42% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 1 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 29%.

FINEOTEX CHEMICAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,697 2,093 23.4
 
Current Liabilities Rs m 313 497 58.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 2,073 2,671 28.8
 
Current assets Rs m 1,154 1,641 42.2
Fixed Assets Rs m 919 1,030 12.0
Total Assets Rs m 2,073 2,671 28.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FINEOTEX CHEMICAL Cash Flow Statement Analysis

  • FINEOTEX CHEMICAL's cash flow from operating activities (CFO) during FY21 stood at Rs 93 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -65 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -44 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -24 million from the Rs 59 million net cash flows seen during FY20.

FINEOTEX CHEMICAL 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 284 93 -67.3%
Cash Flow from Investing Activities Rs m -190 -65 -
Cash Flow from Financing Activities Rs m -39 -44 -
Net Cash Flow Rs m 59 -24 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FINEOTEX CHEMICAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 1.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 65.8, stands at 16.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.0 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 17.6 19.7
TTM Earnings per share Rs 1.3 4.0
Diluted earnings per share Rs 1.3 4.0
Price to Cash Flow x 10.6 11.0
TTM P/E ratio x 11.5 16.4
Price / Book Value ratio x 1.9 2.4
Market Cap Rs m 3,219 5,045
Dividends per share (Unadj.) Rs 0.1 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FINEOTEX CHEMICAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY21, from 3.7x 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 78.2x during FY21, from 35.9x 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 21.3% during FY21, from 8.4% 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 27.0% during FY21, from 13.3% 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 17.0% during FY21, from 7.2% 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 3.7 3.3
Debtors’ Days Days 1,001 1,381
Interest coverage x 35.9 78.2
Debt to equity ratio x 0.0 0.0
Return on assets % 7.2 17.0
Return on equity % 8.4 21.3
Return on capital employed % 13.3 27.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how FINEOTEX CHEMICAL has performed over the last 5 years, please visit here.

FINEOTEX CHEMICAL Share Price Performance

Over the last one year, FINEOTEX CHEMICAL share price has moved up from Rs 14.8 to Rs 65.8, registering a gain of Rs 51.0 or around 344.6%.

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

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

Annual Report FAQs

What is the current share price of FINEOTEX CHEMICAL?

FINEOTEX CHEMICAL currently trades at Rs 368.5 per share. You can check out the latest share price performance of FINEOTEX CHEMICAL here...

What was the revenue of FINEOTEX CHEMICAL in FY21? How does it compare to earlier years?

The revenues of FINEOTEX CHEMICAL stood at Rs 2,360 m in FY21, which was up 19.2% compared to Rs 1,979 m reported in FY20.

FINEOTEX CHEMICAL's revenue has grown from Rs 1,294 m in FY17 to Rs 2,360 m in FY21.

Over the past 5 years, the revenue of FINEOTEX CHEMICAL has grown at a CAGR of 16.2%.

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

The net profit of FINEOTEX CHEMICAL stood at Rs 446 m in FY21, which was up 211.4% compared to Rs 143 m reported in FY20.

This compares to a net profit of Rs 243 m in FY19 and a net profit of Rs 240 m in FY18.

Over the past 5 years, FINEOTEX CHEMICAL net profit has grown at a CAGR of 11.3%.

What does the cash flow statement of FINEOTEX CHEMICAL 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 FINEOTEX CHEMICAL reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 93 m as compared to Rs 284 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -65 m as compared to Rs -190 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -44 m as compared to Rs -39 m in FY20.

Here's the cash flow statement of FINEOTEX CHEMICAL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1916312028493
From Investments-109-9442-190-65
From Financial Activity-58-36-34-39-44
Net Cashflow-9-3013659-24

What does the Key Ratio analysis of FINEOTEX CHEMICAL 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 FINEOTEX CHEMICAL reveals:

  • Operating profit margins witnessed a fall and down at 18.6% in FY21 as against 11.3% in FY20.
  • Net profit margins grew from 7.3% in FY20 to 20.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of FINEOTEX CHEMICAL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)24.621.519.011.318.6
Net Profit Margin (%)24.317.213.37.320.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of FINEOTEX CHEMICAL

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