GLOBUS SPIRITS 2020-21 Annual Report Analysis

Wed, 31 Mar

GLOBUS SPIRITS 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.

GLOBUS SPIRITS Income Statement Analysis

• Operating income during the year fell 26.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 104.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.3% in FY21 as against 11.7% in FY20.
• Depreciation charges increased by 6.9% and finance costs decreased by 20.1% YoY, respectively.
• Other income grew by 75.6% YoY.
• Net profit for the year grew by 183.3% YoY.
• Net profit margins during the year grew from 4.6% in FY20 to 17.8% in FY21.

GLOBUS SPIRITS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,702	7,894	-26.2%
Other income	Rs m	37	66	75.6%
Total Revenues	Rs m	10,739	7,960	-25.9%
Gross profit	Rs m	1,247	2,547	104.2%
Depreciation	Rs m	380	407	6.9%
Interest	Rs m	236	188	-20.1%
Profit before tax	Rs m	669	2,018	201.6%
Tax	Rs m	172	610	254.4%
Profit after tax	Rs m	497	1,408	183.3%
Gross profit margin	%	11.7	32.3
Effective tax rate	%	25.7	30.2
Net profit margin	%	4.6	17.8

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GLOBUS SPIRITS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 37.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY20, a fall of 19.6%.
• Current assets rose 79% and stood at Rs 3 billion, while fixed assets rose 10% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 26%.

GLOBUS SPIRITS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,473	5,853	30.9
Current Liabilities	Rs m	1,974	2,714	37.5
Long-term Debt	Rs m	1,328	1,067	-19.6
Total Liabilities	Rs m	8,113	10,257	26.4
Current assets	Rs m	1,884	3,374	79.1
Fixed Assets	Rs m	6,229	6,883	10.5
Total Assets	Rs m	8,113	10,257	26.4

GLOBUS SPIRITS Cash Flow Statement Analysis

• GLOBUS SPIRITS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 9.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -870 million, an improvement of 137.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -233 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 381 million from the Rs 184 million net cash flows seen during FY20.

GLOBUS SPIRITS 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	1,354	1,484	9.6%
Cash Flow from Investing Activities	Rs m	-367	-870	-
Cash Flow from Financing Activities	Rs m	-804	-233	-
Net Cash Flow	Rs m	184	381	107.5%

Current Valuations for GLOBUS SPIRITS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.9, an improvement from the EPS of Rs 17.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 317.7, stands at 6.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	371.6	274.1
TTM Earnings per share	Rs	17.3	48.9
Diluted earnings per share	Rs	17.3	48.9
Price to Cash Flow	x	2.8	4.0
TTM P/E ratio	x	4.9	6.5
Price / Book Value ratio	x	0.7	1.2
Market Cap	Rs m	3,186	7,298
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for GLOBUS SPIRITS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.0x 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 11.7x during FY21, from 3.8x 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 24.1% during FY21, from 11.1% 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 31.9% during FY21, from 15.6% 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 15.6% during FY21, from 9.0% 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	1.0	1.2
Debtors’ Days	Days	115	406
Interest coverage	x	3.8	11.7
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.0	15.6
Return on equity	%	11.1	24.1
Return on capital employed	%	15.6	31.9

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

GLOBUS SPIRITS Share Price Performance

Over the last one year, GLOBUS SPIRITS share price has moved up from Rs 84.4 to Rs 317.7, registering a gain of Rs 233.3 or around 276.4%.

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

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

Read: Latest Annual Report Analysis of GLOBUS SPIRITS