GRANULES INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

GRANULES INDIA 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.

GRANULES INDIA Income Statement Analysis

• Operating income during the year rose 24.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY21 as against 21.3% in FY20.
• Depreciation charges increased by 10.6% and finance costs decreased by 2.7% YoY, respectively.
• Other income declined by 26.5% YoY.
• Net profit for the year grew by 77.3% YoY.
• Net profit margins during the year grew from 11.9% in FY20 to 17.0% in FY21.

GRANULES INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	25,986	32,375	24.6%
Other income	Rs m	366	269	-26.5%
Total Revenues	Rs m	26,352	32,644	23.9%
Gross profit	Rs m	5,531	8,552	54.6%
Depreciation	Rs m	1,370	1,515	10.6%
Interest	Rs m	270	263	-2.7%
Profit before tax	Rs m	4,256	7,044	65.5%
Tax	Rs m	1,157	1,549	33.9%
Profit after tax	Rs m	3,099	5,495	77.3%
Gross profit margin	%	21.3	26.4
Effective tax rate	%	27.2	22.0
Net profit margin	%	11.9	17.0

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GRANULES INDIA 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 31.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 19.1%.
• Current assets rose 23% and stood at Rs 20 billion, while fixed assets rose 8% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 37 billion as against Rs 32 billion during FY20, thereby witnessing a growth of 15%.

GRANULES INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,254	21,510	17.8
Current Liabilities	Rs m	8,934	11,731	31.3
Long-term Debt	Rs m	4,215	3,411	-19.1
Total Liabilities	Rs m	32,231	37,127	15.2
Current assets	Rs m	16,287	19,970	22.6
Fixed Assets	Rs m	15,944	17,157	7.6
Total Assets	Rs m	32,231	37,127	15.2

GRANULES INDIA Cash Flow Statement Analysis

• GRANULES INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 72.5% 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 -1 billion from the Rs 1 billion net cash flows seen during FY20.

GRANULES INDIA 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	4,762	4,325	-9.2%
Cash Flow from Investing Activities	Rs m	-1,606	-2,771	-
Cash Flow from Financing Activities	Rs m	-2,129	-2,993	-
Net Cash Flow	Rs m	1,029	-1,441	-

Current Valuations for GRANULES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an improvement from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 303.3, stands at 13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	102.2	130.7
TTM Earnings per share	Rs	12.2	22.2
Diluted earnings per share	Rs	12.5	22.2
Price to Cash Flow	x	8.0	10.2
TTM P/E ratio	x	11.5	13.7
Price / Book Value ratio	x	1.9	3.3
Market Cap	Rs m	34,718	71,337
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for GRANULES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 1.8x 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 27.8x during FY21, from 16.8x 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 25.5% during FY21, from 17.0% 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 29.3% 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 15.5% during FY21, from 10.5% 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	1.8	1.7
Debtors’ Days	Days	930	863
Interest coverage	x	16.8	27.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	10.5	15.5
Return on equity	%	17.0	25.5
Return on capital employed	%	20.1	29.3

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

GRANULES INDIA Share Price Performance

Over the last one year, GRANULES INDIA share price has moved up from Rs 143.6 to Rs 303.3, registering a gain of Rs 159.7 or around 111.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Read: Latest Annual Report Analysis of GRANULES INDIA