GREENPLY INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

GREENPLY INDUSTRIES 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.

GREENPLY INDUSTRIES Income Statement Analysis

• Operating income during the year fell 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY21 as against 7.4% in FY20.
• Depreciation charges decreased by 10.3% and finance costs decreased by 19.9% YoY, respectively.
• Other income grew by 311.2% YoY.
• Net profit for the year grew by 32.5% YoY.
• Net profit margins during the year grew from 3.4% in FY20 to 5.4% in FY21.

GREENPLY INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	14,204	11,653	-18.0%
Other income	Rs m	20	84	311.2%
Total Revenues	Rs m	14,225	11,737	-17.5%
Gross profit	Rs m	1,057	1,151	8.9%
Depreciation	Rs m	257	231	-10.3%
Interest	Rs m	208	167	-19.9%
Profit before tax	Rs m	612	837	36.9%
Tax	Rs m	134	205	52.3%
Profit after tax	Rs m	477	633	32.5%
Gross profit margin	%	7.4	9.9
Effective tax rate	%	22.0	24.4
Net profit margin	%	3.4	5.4

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GREENPLY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -23.4%.
• Long-term debt stood at Rs 721 million as compared to Rs 581 million during FY20, a growth of 24.1%.
• Current assets fell 7% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 10 billion during FY20, thereby witnessing a fall of 5%.

GREENPLY INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,779	4,362	15.4
Current Liabilities	Rs m	5,119	3,923	-23.4
Long-term Debt	Rs m	581	721	24.1
Total Liabilities	Rs m	9,517	9,087	-4.5
Current assets	Rs m	5,815	5,419	-6.8
Fixed Assets	Rs m	3,702	3,668	-0.9
Total Assets	Rs m	9,517	9,087	-4.5

GREENPLY INDUSTRIES Cash Flow Statement Analysis

• GREENPLY INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 295.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 118.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -922 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 118 million from the Rs -198 million net cash flows seen during FY20.

GREENPLY INDUSTRIES 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	576	2,278	295.2%
Cash Flow from Investing Activities	Rs m	-572	-1,247	-
Cash Flow from Financing Activities	Rs m	-190	-922	-
Net Cash Flow	Rs m	-198	118	-

Current Valuations for GREENPLY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 169.3, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	115.8	95.0
TTM Earnings per share	Rs	3.9	5.2
Diluted earnings per share	Rs	3.9	5.2
Price to Cash Flow	x	13.6	19.7
TTM P/E ratio	x	20.9	32.9
Price / Book Value ratio	x	4.3	3.9
Market Cap	Rs m	16,276	17,018
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for GREENPLY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.1x 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 6.0x during FY21, from 3.9x 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 improved and stood at 14.5% during FY21, from 12.6% 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 19.8% during FY21, from 18.8% 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 8.8% during FY21, from 7.2% 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	1.1	1.4
Debtors’ Days	Days	916	607
Interest coverage	x	3.9	6.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.2	8.8
Return on equity	%	12.6	14.5
Return on capital employed	%	18.8	19.8

To see how GREENPLY INDUSTRIES has performed over the last 5 years, please visit here.

GREENPLY INDUSTRIES Share Price Performance

Over the last one year, GREENPLY INDUSTRIES share price has moved up from Rs 81.4 to Rs 169.3, registering a gain of Rs 88.0 or around 108.1%.

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

(To know more, check out historical annual results for GREENPLY INDUSTRIES and quarterly results for GREENPLY INDUSTRIES)

Read: Latest Annual Report Analysis of GREENPLY INDUSTRIES