GRANULES INDIA 2020-21 Annual Report Analysis

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GRANULES INDIA 2020-21 Annual Report Analysis
Wed, 20 Oct

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 11.8% in FY20 to 16.8% 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 % 11.8 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 316.4, stands at 14.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.2 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 18.0 11.2
TTM P/E ratio x 14.4 14.0
Price / Book Value ratio x 1.9 3.3
Market Cap Rs m 80,431 78,352
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 391.7 to Rs 316.4, registering a loss of Rs 75.3 or around 19.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,791.2 (down 0.3%). Over the last one year it has moved up from 19,772.3 to 25,791.2, a gain of 6,019 points (up 30.4%).

Overall, the S&P BSE SENSEX is up 52.4% over the year.

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

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