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GODREJ AGROVET 2020-21 Annual Report Analysis

Wed, 31 Mar

GODREJ AGROVET 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.

GODREJ AGROVET Income Statement Analysis

• Operating income during the year fell 10.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY21 as against 6.9% in FY20.
• Depreciation charges increased by 4.0% and finance costs increased by 11.6% YoY, respectively.
• Other income declined by 15.5% YoY.
• Net profit for the year grew by 3.4% YoY.
• Net profit margins during the year grew from 4.1% in FY20 to 4.7% in FY21.

GODREJ AGROVET Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	69,646	62,676	-10.0%
Other income	Rs m	468	396	-15.5%
Total Revenues	Rs m	70,115	63,072	-10.0%
Gross profit	Rs m	4,786	5,638	17.8%
Depreciation	Rs m	1,481	1,540	4.0%
Interest	Rs m	416	465	11.6%
Profit before tax	Rs m	3,357	4,029	20.0%
Tax	Rs m	481	1,055	119.6%
Profit after tax	Rs m	2,876	2,973	3.4%
Gross profit margin	%	6.9	9.0
Effective tax rate	%	14.3	26.2
Net profit margin	%	4.1	4.7

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GODREJ AGROVET Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 20 billion as compared to Rs 22 billion in FY20, thereby witnessing an decrease of -10.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 428 million during FY20, a growth of 247.7%.
• Current assets rose 0% and stood at Rs 21 billion, while fixed assets rose 4% and stood at Rs 26 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 48 billion as against Rs 47 billion during FY20, thereby witnessing a growth of 2%.

GODREJ AGROVET Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,340	20,466	11.6
Current Liabilities	Rs m	22,102	19,720	-10.8
Long-term Debt	Rs m	428	1,487	247.7
Total Liabilities	Rs m	46,722	47,793	2.3
Current assets	Rs m	21,324	21,376	0.2
Fixed Assets	Rs m	25,399	26,418	4.0
Total Assets	Rs m	46,722	47,793	2.3

GODREJ AGROVET Cash Flow Statement Analysis

• GODREJ AGROVET 's cash flow from operating activities (CFO) during FY21 stood at Rs -18 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 420% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 million from the Rs 210 million net cash flows seen during FY20.

GODREJ AGROVET 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	2,398	-18	-
Cash Flow from Investing Activities	Rs m	-2,552	-1,873	-
Cash Flow from Financing Activities	Rs m	364	1,891	419.9%
Net Cash Flow	Rs m	210	-1	-

Current Valuations for GODREJ AGROVET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.5, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 524.5, stands at 33.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 19.4 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	362.7	326.3
TTM Earnings per share	Rs	15.0	15.5
Diluted earnings per share	Rs	15.0	15.5
Price to Cash Flow	x	16.2	19.4
TTM P/E ratio	x	24.6	33.9
Price / Book Value ratio	x	4.5	4.3
Market Cap	Rs m	82,866	87,465
Dividends per share (Unadj.)	Rs	5.5	8.0

Ratio Analysis for GODREJ AGROVET

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 9.7x during FY21, from 9.1x 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 declined and down at 14.5% during FY21, from 15.7% 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 improved and stood at 20.5% during FY21, from 20.1% 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 7.2% during FY21, from 7.0% 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	1.1
Debtors’ Days	Days	4	5
Interest coverage	x	9.1	9.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.0	7.2
Return on equity	%	15.7	14.5
Return on capital employed	%	20.1	20.5

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

GODREJ AGROVET Share Price Performance

Over the last one year, GODREJ AGROVET share price has moved up from Rs 368.4 to Rs 524.5, registering a gain of Rs 156.1 or around 42.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

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

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

Read: Latest Annual Report Analysis of GODREJ AGROVET