FINE ORGANIC INDUSTRIES 2020-21 Annual Report Analysis

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FINE ORGANIC INDUSTRIES 2020-21 Annual Report Analysis
Thu, 12 Aug

FINE ORGANIC 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.

FINE ORGANIC INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 17.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY21 as against 23.2% in FY20.
  • Depreciation charges increased by 35.0% and finance costs decreased by 23.2% YoY, respectively.
  • Other income declined by 26.8% YoY.
  • Net profit for the year declined by 28.4% YoY.
  • Net profit margins during the year declined from 16.0% in FY20 to 10.6% in FY21.

FINE ORGANIC INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 10,381 11,332 9.2%
Other income Rs m 233 171 -26.8%
Total Revenues Rs m 10,614 11,503 8.4%
Gross profit Rs m 2,405 1,993 -17.1%
Depreciation Rs m 347 468 35.0%
Interest Rs m 80 61 -23.2%
Profit before tax Rs m 2,212 1,635 -26.1%
Tax Rs m 513 418 -18.5%
Profit after tax Rs m 1,699 1,216 -28.4%
Gross profit margin % 23.2 17.6
Effective tax rate % 23.2 25.6
Net profit margin % 16.0 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Find Out: How to Create Massive Gains from Govt's Mega 2023 Plan?

FINE ORGANIC 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 15.2%.
  • Long-term debt down at Rs 567 million as compared to Rs 915 million during FY20, a fall of 38.0%.
  • Current assets rose 18% and stood at Rs 6 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 11%.

FINE ORGANIC INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,189 7,314 18.2
 
Current Liabilities Rs m 1,341 1,544 15.2
Long-term Debt Rs m 915 567 -38.0
Total Liabilities Rs m 8,453 9,390 11.1
 
Current assets Rs m 5,243 6,198 18.2
Fixed Assets Rs m 3,211 3,192 -0.6
Total Assets Rs m 8,453 9,390 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FINE ORGANIC INDUSTRIES Cash Flow Statement Analysis

  • FINE ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -403 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -399 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 533 million from the Rs 975 million net cash flows seen during FY20.

FINE ORGANIC 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 2,190 1,334 -39.1%
Cash Flow from Investing Activities Rs m -847 -403 -
Cash Flow from Financing Activities Rs m -367 -399 -
Net Cash Flow Rs m 975 533 -45.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FINE ORGANIC INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.7, an decline from the EPS of Rs 55.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,889.7, stands at 72.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.7 times, while the price to sales ratio stands at 6.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 52.6 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 338.6 369.6
TTM Earnings per share Rs 55.4 39.7
Diluted earnings per share Rs 55.4 39.7
Price to Cash Flow x 43.3 52.6
TTM P/E ratio x 72.8 72.8
Price / Book Value ratio x 9.4 10.7
Market Cap Rs m 88,597 88,597
Dividends per share (Unadj.) Rs 7.0 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FINE ORGANIC INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.0x during FY21, from 3.9x 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 deteriorated and stood at 27.7x during FY21, from 28.7x 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 16.6% during FY21, from 27.4% 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 declined and down at 21.5% during FY21, from 32.3% 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 declined and down at 13.6% during FY21, from 21.0% 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 3.9 4.0
Debtors’ Days Days 465 519
Interest coverage x 28.7 27.7
Debt to equity ratio x 0.1 0.1
Return on assets % 21.0 13.6
Return on equity % 27.4 16.6
Return on capital employed % 32.3 21.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

FINE ORGANIC INDUSTRIES Share Price Performance

Over the last one year, FINE ORGANIC INDUSTRIES share price has moved up from Rs 2,274.1 to Rs 2,889.7, registering a gain of Rs 615.6 or around 27.1%.

Overall, the S&P BSE SENSEX is up 43.5% over the year.

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

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Related Views on News

FINE ORGANIC INDUSTRIES Announces Quarterly Results (1QFY22); Net Profit Up 25.0% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, FINE ORGANIC INDUSTRIES has posted a net profit of Rs 365 m (up 25.0% YoY). Sales on the other hand came in at Rs 4 bn (up 49.0% YoY). Read on for a complete analysis of FINE ORGANIC INDUSTRIES's quarterly results.

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