FINOLEX INDUSTRIES 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

FINOLEX INDUSTRIES 2020-21 Annual Report Analysis
Mon, 6 Sep

FINOLEX 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.

FINOLEX INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 122.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.6% in FY21 as against 14.9% in FY20.
  • Depreciation charges increased by 5.3% and finance costs decreased by 35.5% YoY, respectively.
  • Other income grew by 119.2% YoY.
  • Net profit for the year grew by 135.0% YoY.
  • Net profit margins during the year grew from 10.2% in FY20 to 20.4% in FY21.

FINOLEX INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 29,845 34,628 16.0%
Other income Rs m 326 716 119.2%
Total Revenues Rs m 30,172 35,344 17.1%
Gross profit Rs m 4,447 9,893 122.5%
Depreciation Rs m 738 777 5.3%
Interest Rs m 113 73 -35.5%
Profit before tax Rs m 3,923 9,759 148.8%
Tax Rs m 852 2,543 198.5%
Profit after tax Rs m 3,071 7,216 135.0%
Gross profit margin % 14.9 28.6
Effective tax rate % 21.7 26.1
Net profit margin % 10.2 20.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FINOLEX INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 35.4%.
  • Current assets rose 62% and stood at Rs 20 billion, while fixed assets rose 38% and stood at Rs 23 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 43 billion as against Rs 29 billion during FY20, thereby witnessing a growth of 49%.

FINOLEX INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 19,860 31,390 58.1
 
Current Liabilities Rs m 6,914 9,362 35.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 28,913 42,939 48.5
 
Current assets Rs m 12,243 19,879 62.4
Fixed Assets Rs m 16,670 23,060 38.3
Total Assets Rs m 28,913 42,939 48.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FINOLEX INDUSTRIES Cash Flow Statement Analysis

  • FINOLEX INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 9 billion, an improvement of 785.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -903 million, an improvement of 14% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -259 million from the Rs 508 million net cash flows seen during FY20.

FINOLEX 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 1,063 9,410 785.3%
Cash Flow from Investing Activities Rs m 491 -8,766 -
Cash Flow from Financing Activities Rs m -1,047 -903 -
Net Cash Flow Rs m 508 -259 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FINOLEX INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an decline from the EPS of Rs 24.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 172.1, stands at 13.1 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 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.4 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 240.5 55.8
TTM Earnings per share Rs 24.7 11.6
Diluted earnings per share Rs 4.9 11.6
Price to Cash Flow x 5.6 13.4
TTM P/E ratio x 2.6 13.1
Price / Book Value ratio x 2.9 2.1
Market Cap Rs m 21,357 106,784
Dividends per share (Unadj.) Rs 2.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FINOLEX INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.8x 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 135.2x during FY21, from 35.8x 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 23.0% during FY21, from 15.5% 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 31.3% during FY21, from 20.3% 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 11.0% 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 1.8 2.1
Debtors’ Days Days 1 2
Interest coverage x 35.8 135.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.0 17.0
Return on equity % 15.5 23.0
Return on capital employed % 20.3 31.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

FINOLEX INDUSTRIES Share Price Performance

Over the last one year, FINOLEX INDUSTRIES share price has moved up from Rs 102.4 to Rs 172.1, registering a gain of Rs 69.7 or around 68.1%.

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

Equitymaster requests your view! Post a comment on "FINOLEX INDUSTRIES 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

FINOLEX INDUSTRIES Announces Quarterly Results (1QFY22); Net Profit Up 173.3% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, FINOLEX INDUSTRIES has posted a net profit of Rs 1 bn (up 173.3% YoY). Sales on the other hand came in at Rs 10 bn (up 71.9% YoY). Read on for a complete analysis of FINOLEX INDUSTRIES's quarterly results.

FINOLEX INDUSTRIES Announces Quarterly Results (3QFY21); Net Profit Up 174.2% (Quarterly Result Update)

Feb 2, 2021 | Updated on Feb 2, 2021

For the quarter ended December 2020, FINOLEX INDUSTRIES has posted a net profit of Rs 3 bn (up 174.2% YoY). Sales on the other hand came in at Rs 11 bn (up 52.5% YoY). Read on for a complete analysis of FINOLEX INDUSTRIES's quarterly results.

More Views on News

Most Popular

10 Indian Companies with the Fastest Growth in Dividend Payouts...(Views On News)

Jan 10, 2022

These companies have been consistently paying higher dividends for several years.

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

Watch Out for these 4 Indian Companies Betting Big on EV Supply Chain(Views On News)

Jan 11, 2022

The upside in supply chain players could be huge but a delay in the transition to EVs, or any policy related hiccups could end the momentum.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

Time to Buy Energy Stocks(Fast Profits Daily)

Jan 14, 2022

Energy is a sector that looks set to take off. It's time to get in.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK FINOLEX INDUSTRIES

  • Track your investment in FINOLEX INDUSTRIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON FINOLEX INDUSTRIES

FINOLEX INDUSTRIES - ARCEE INDUST COMPARISON

COMPARE FINOLEX INDUSTRIES WITH

MARKET STATS