IFB INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

IFB 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.

IFB INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY21 as against 4.1% in FY20.
• Depreciation charges increased by 11.4% and finance costs increased by 85.7% YoY, respectively.
• Other income grew by 15.4% YoY.
• Net profit for the year grew by 148.8% YoY.
• Net profit margins during the year grew from 1.0% in FY20 to 2.3% in FY21.

IFB INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	26,370	28,008	6.2%
Other income	Rs m	278	321	15.4%
Total Revenues	Rs m	26,648	28,329	6.3%
Gross profit	Rs m	1,090	2,029	86.1%
Depreciation	Rs m	920	1,024	11.4%
Interest	Rs m	181	336	85.7%
Profit before tax	Rs m	268	989	269.8%
Tax	Rs m	10	348	3,451.0%
Profit after tax	Rs m	258	641	148.8%
Gross profit margin	%	4.1	7.2
Effective tax rate	%	3.7	35.2
Net profit margin	%	1.0	2.3

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IFB INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 39.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY20, a fall of 32.4%.
• Current assets rose 26% and stood at Rs 12 billion, while fixed assets fell 2% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 14%.

IFB INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,462	6,959	7.7
Current Liabilities	Rs m	6,264	8,731	39.4
Long-term Debt	Rs m	2,537	1,716	-32.4
Total Liabilities	Rs m	16,647	18,914	13.6
Current assets	Rs m	9,428	11,837	25.6
Fixed Assets	Rs m	7,219	7,077	-2.0
Total Assets	Rs m	16,647	18,914	13.6

IFB INDUSTRIES Cash Flow Statement Analysis

• IFB INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 58.2% 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 -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -66 million from the Rs 332 million net cash flows seen during FY20.

IFB 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	1,845	2,919	58.2%
Cash Flow from Investing Activities	Rs m	-3,741	-1,866	-
Cash Flow from Financing Activities	Rs m	2,226	-1,118	-
Net Cash Flow	Rs m	332	-66	-

Current Valuations for IFB INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.8, an improvement from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,107.8, stands at 70.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 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	650.8	691.2
TTM Earnings per share	Rs	6.4	15.8
Diluted earnings per share	Rs	6.4	15.8
Price to Cash Flow	x	9.1	20.9
TTM P/E ratio	x	41.7	70.0
Price / Book Value ratio	x	3.8	5.0
Market Cap	Rs m	24,464	34,787
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IFB INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY21, from 1.5x 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 3.9x 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 9.2% during FY21, from 4.0% 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 15.3% during FY21, from 5.0% 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 5.2% during FY21, from 2.6% 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	1.5	1.4
Debtors’ Days	Days	283	346
Interest coverage	x	2.5	3.9
Debt to equity ratio	x	0.4	0.2
Return on assets	%	2.6	5.2
Return on equity	%	4.0	9.2
Return on capital employed	%	5.0	15.3

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

IFB INDUSTRIES Share Price Performance

Over the last one year, IFB INDUSTRIES share price has moved up from Rs 265.3 to Rs 1,107.8, registering a gain of Rs 842.5 or around 317.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

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

Read: Latest Annual Report Analysis of IFB INDUSTRIES