HATSUN AGRO PROD. 2020-21 Annual Report Analysis

Wed, 31 Mar

HATSUN AGRO PROD. 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.

HATSUN AGRO PROD. Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY21 as against 10.4% in FY20.
• Depreciation charges increased by 4.5% and finance costs increased by 4.3% YoY, respectively.
• Other income declined by 33.4% YoY.
• Net profit for the year grew by 119.4% YoY.
• Net profit margins during the year grew from 2.1% in FY20 to 4.4% in FY21.

HATSUN AGRO PROD. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	53,083	55,697	4.9%
Other income	Rs m	87	58	-33.4%
Total Revenues	Rs m	53,170	55,755	4.9%
Gross profit	Rs m	5,501	7,787	41.6%
Depreciation	Rs m	2,965	3,099	4.5%
Interest	Rs m	1,059	1,104	4.3%
Profit before tax	Rs m	1,564	3,642	132.8%
Tax	Rs m	441	1,178	167.0%
Profit after tax	Rs m	1,123	2,464	119.4%
Gross profit margin	%	10.4	14.0
Effective tax rate	%	28.2	32.3
Net profit margin	%	2.1	4.4

Download Now: Exclusive Guide About India's Potentially Decade-Long $10 Trillion Bull Run...

HATSUN AGRO PROD. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 13 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 39.7%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY20, a fall of 12.8%.
• Current assets rose 44% and stood at Rs 7 billion, while fixed assets rose 8% and stood at Rs 24 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 31 billion as against Rs 27 billion during FY20, thereby witnessing a growth of 15%.

HATSUN AGRO PROD. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,045	10,215	12.9
Current Liabilities	Rs m	9,573	13,374	39.7
Long-term Debt	Rs m	6,141	5,358	-12.8
Total Liabilities	Rs m	27,143	31,170	14.8
Current assets	Rs m	4,983	7,180	44.1
Fixed Assets	Rs m	22,160	23,991	8.3
Total Assets	Rs m	27,143	31,170	14.8

HATSUN AGRO PROD. Cash Flow Statement Analysis

• HATSUN AGRO PROD.'s cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -66 million from the Rs 80 million net cash flows seen during FY20.

HATSUN AGRO PROD. 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	5,519	5,179	-6.2%
Cash Flow from Investing Activities	Rs m	-5,371	-4,183	-
Cash Flow from Financing Activities	Rs m	-68	-1,062	-
Net Cash Flow	Rs m	80	-66	-

Current Valuations for HATSUN AGRO PROD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.4, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 724.6, stands at 61.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.3 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 30.1 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	328.1	258.2
TTM Earnings per share	Rs	6.9	11.4
Diluted earnings per share	Rs	5.2	11.4
Price to Cash Flow	x	27.0	30.1
TTM P/E ratio	x	98.3	61.8
Price / Book Value ratio	x	10.3	16.4
Market Cap	Rs m	93,036	167,345
Dividends per share (Unadj.)	Rs	6.0	8.0

Ratio Analysis for HATSUN AGRO PROD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.5x during FY21, from 0.5x 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 4.3x during FY21, from 2.5x 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 12.4% 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 30.5% during FY21, from 17.3% 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 11.4% during FY21, from 8.0% 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	0.5	0.5
Debtors’ Days	Days	10	6
Interest coverage	x	2.5	4.3
Debt to equity ratio	x	0.7	0.5
Return on assets	%	8.0	11.4
Return on equity	%	12.4	24.1
Return on capital employed	%	17.3	30.5

To see how HATSUN AGRO PROD. has performed over the last 5 years, please visit here.

HATSUN AGRO PROD. Share Price Performance

Over the last one year, HATSUN AGRO PROD. share price has moved up from Rs 512.0 to Rs 724.6, registering a gain of Rs 212.6 or around 41.5%.

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

(To know more, check out historical annual results for HATSUN AGRO PROD. and quarterly results for HATSUN AGRO PROD.)

Read: Latest Annual Report Analysis of HATSUN AGRO PROD.