KANSAI NEROLAC 2020-21 Annual Report Analysis

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KANSAI NEROLAC 2020-21 Annual Report Analysis
Tue, 26 Oct

KANSAI NEROLAC 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.

KANSAI NEROLAC Income Statement Analysis

  • Operating income during the year fell 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in FY21 as against 15.2% in FY20.
  • Depreciation charges increased by 16.3% and finance costs increased by 13.5% YoY, respectively.
  • Other income grew by 49.7% YoY.
  • Net profit for the year grew by 1.9% YoY.
  • Net profit margins during the year grew from 9.7% in FY20 to 10.3% in FY21.

KANSAI NEROLAC Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 52,800 50,743 -3.9%
Other income Rs m 255 382 49.7%
Total Revenues Rs m 53,055 51,125 -3.6%
Gross profit Rs m 8,045 8,633 7.3%
Depreciation Rs m 1,421 1,653 16.3%
Interest Rs m 209 237 13.5%
Profit before tax Rs m 6,670 7,125 6.8%
Tax Rs m 1,512 1,867 23.5%
Profit after tax Rs m 5,158 5,257 1.9%
Gross profit margin % 15.2 17.0
Effective tax rate % 22.7 26.2
Net profit margin % 9.7 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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KANSAI NEROLAC Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 12 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 35.2%.
  • Long-term debt down at Rs 172 million as compared to Rs 234 million during FY20, a fall of 26.7%.
  • Current assets rose 28% and stood at Rs 32 billion, while fixed assets fell 2% and stood at Rs 24 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 55 billion as against Rs 49 billion during FY20, thereby witnessing a growth of 13%.

KANSAI NEROLAC Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 37,603 40,529 7.8
 
Current Liabilities Rs m 9,172 12,405 35.2
Long-term Debt Rs m 234 172 -26.7
Total Liabilities Rs m 48,836 55,334 13.3
 
Current assets Rs m 24,885 31,779 27.7
Fixed Assets Rs m 23,951 23,555 -1.7
Total Assets Rs m 48,836 55,334 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KANSAI NEROLAC Cash Flow Statement Analysis

  • KANSAI NEROLAC's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 8.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 20.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -802 million from the Rs 782 million net cash flows seen during FY20.

KANSAI NEROLAC 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 5,951 6,459 8.5%
Cash Flow from Investing Activities Rs m -3,762 -4,528 -
Cash Flow from Financing Activities Rs m -1,407 -2,742 -
Net Cash Flow Rs m 782 -802 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KANSAI NEROLAC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs 9.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 565.3, stands at 50.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 5.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.1 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 98.0 94.2
TTM Earnings per share Rs 9.6 9.8
Diluted earnings per share Rs 9.6 9.8
Price to Cash Flow x 46.3 44.1
TTM P/E ratio x 50.1 50.1
Price / Book Value ratio x 6.2 6.7
Market Cap Rs m 304,624 304,624
Dividends per share (Unadj.) Rs 3.2 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KANSAI NEROLAC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY21, from 2.7x 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 31.0x during FY21, from 32.9x 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 declined and down at 13.0% during FY21, from 13.7% 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 18.1% during FY21, from 18.2% 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 9.9% 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 2.7 2.6
Debtors’ Days Days 54 69
Interest coverage x 32.9 31.0
Debt to equity ratio x 0.0 0.0
Return on assets % 11.0 9.9
Return on equity % 13.7 13.0
Return on capital employed % 18.2 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

KANSAI NEROLAC Share Price Performance

Over the last one year, KANSAI NEROLAC share price has moved up from Rs 500.9 to Rs 565.3, registering a gain of Rs 64.4 or around 12.8%.

Overall, the S&P BSE SENSEX is up 51.6% over the year.

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

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Related Views on News

KANSAI NEROLAC Announces Quarterly Results (1QFY22); Net Profit Up 275.8% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, KANSAI NEROLAC has posted a net profit of Rs 1 bn (up 275.8% YoY). Sales on the other hand came in at Rs 14 bn (up 119.6% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC Announces Quarterly Results (3QFY21); Net Profit Up 64.6% (Quarterly Result Update)

Feb 2, 2021 | Updated on Feb 2, 2021

For the quarter ended December 2020, KANSAI NEROLAC has posted a net profit of Rs 2 bn (up 64.6% YoY). Sales on the other hand came in at Rs 15 bn (up 18.0% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC 2019-20 Annual Report Analysis (Annual Result Update)

Dec 29, 2020 | Updated on Dec 29, 2020

Here's an analysis of the annual report of KANSAI NEROLAC for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of KANSAI NEROLAC. Also includes updates on the valuation of KANSAI NEROLAC.

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