UFLEX 2020-21 Annual Report Analysis

Wed, 31 Mar

UFLEX 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.

UFLEX Income Statement Analysis

• Operating income during the year rose 20.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 65.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY21 as against 14.6% in FY20.
• Depreciation charges increased by 13.0% and finance costs increased by 1.9% YoY, respectively.
• Other income grew by 8.1% YoY.
• Net profit for the year grew by 126.1% YoY.
• Net profit margins during the year grew from 5.0% in FY20 to 9.5% in FY21.

UFLEX Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	74,048	88,908	20.1%
Other income	Rs m	291	314	8.1%
Total Revenues	Rs m	74,339	89,222	20.0%
Gross profit	Rs m	10,814	17,942	65.9%
Depreciation	Rs m	4,032	4,557	13.0%
Interest	Rs m	2,248	2,291	1.9%
Profit before tax	Rs m	4,825	11,409	136.4%
Tax	Rs m	1,100	2,985	171.4%
Profit after tax	Rs m	3,726	8,424	126.1%
Gross profit margin	%	14.6	20.2
Effective tax rate	%	22.8	26.2
Net profit margin	%	5.0	9.5

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UFLEX Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 31 billion as compared to Rs 26 billion in FY20, thereby witnessing an increase of 17.9%.
• Long-term debt stood at Rs 28 billion as compared to Rs 25 billion during FY20, a growth of 14.5%.
• Current assets rose 30% and stood at Rs 48 billion, while fixed assets rose 11% and stood at Rs 70 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 118 billion as against Rs 100 billion during FY20, thereby witnessing a growth of 18%.

UFLEX Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	46,898	55,485	18.3
Current Liabilities	Rs m	26,077	30,748	17.9
Long-term Debt	Rs m	24,511	28,067	14.5
Total Liabilities	Rs m	100,164	118,237	18.0
Current assets	Rs m	36,738	47,759	30.0
Fixed Assets	Rs m	63,426	70,478	11.1
Total Assets	Rs m	100,164	118,237	18.0

UFLEX Cash Flow Statement Analysis

• UFLEX's cash flow from operating activities (CFO) during FY21 stood at Rs 14 billion, an improvement of 65.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -621 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY20.

UFLEX 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	8,485	14,062	65.7%
Cash Flow from Investing Activities	Rs m	-20,620	-11,286	-
Cash Flow from Financing Activities	Rs m	13,689	-621	-
Net Cash Flow	Rs m	1,554	2,155	38.7%

Current Valuations for UFLEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 116.7, an improvement from the EPS of Rs 51.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 377.7, stands at 3.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.6 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	1,025.5	1,231.2
TTM Earnings per share	Rs	51.6	116.7
Diluted earnings per share	Rs	51.6	116.7
Price to Cash Flow	x	1.3	1.6
TTM P/E ratio	x	2.7	3.2
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	14,305	21,003
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for UFLEX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.4x 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 6.0x during FY21, from 3.1x 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 15.2% during FY21, from 7.9% 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 16.4% during FY21, from 9.9% 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 improved and stood at 9.1% during FY21, from 6.0% 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	1.4	1.6
Debtors’ Days	Days	960	988
Interest coverage	x	3.1	6.0
Debt to equity ratio	x	0.5	0.5
Return on assets	%	6.0	9.1
Return on equity	%	7.9	15.2
Return on capital employed	%	9.9	16.4

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

UFLEX Share Price Performance

Over the last one year, UFLEX share price has moved up from Rs 138.0 to Rs 377.7, registering a gain of Rs 239.7 or around 173.7%.

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

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

Read: Latest Annual Report Analysis of UFLEX