IG PETROCHEMICALS 2020-21 Annual Report Analysis

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IG PETROCHEMICALS 2020-21 Annual Report Analysis
Mon, 8 Nov

IG PETROCHEMICALS 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.

IG PETROCHEMICALS Income Statement Analysis

  • Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 314.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.3% in FY21 as against 6.7% in FY20.
  • Depreciation charges increased by 14.1% and finance costs decreased by 8.8% YoY, respectively.
  • Other income declined by 13.8% YoY.
  • Net profit for the year grew by 801.0% YoY.
  • Net profit margins during the year grew from 2.0% in FY20 to 16.7% in FY21.

IG PETROCHEMICALS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 10,586 11,236 6.1%
Other income Rs m 64 55 -13.8%
Total Revenues Rs m 10,650 11,291 6.0%
Gross profit Rs m 714 2,958 314.4%
Depreciation Rs m 299 341 14.1%
Interest Rs m 160 146 -8.8%
Profit before tax Rs m 319 2,526 691.7%
Tax Rs m 110 645 485.0%
Profit after tax Rs m 209 1,881 801.0%
Gross profit margin % 6.7 26.3
Effective tax rate % 34.6 25.5
Net profit margin % 2.0 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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IG PETROCHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 11.7%.
  • Long-term debt down at Rs 898 million as compared to Rs 1 billion during FY20, a fall of 39.1%.
  • Current assets rose 34% and stood at Rs 4 billion, while fixed assets rose 6% and stood at Rs 9 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 14%.

IG PETROCHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,327 8,220 29.9
 
Current Liabilities Rs m 2,944 3,290 11.7
Long-term Debt Rs m 1,474 898 -39.1
Total Liabilities Rs m 11,614 13,238 14.0
 
Current assets Rs m 3,259 4,370 34.1
Fixed Assets Rs m 8,356 8,868 6.1
Total Assets Rs m 11,614 13,238 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IG PETROCHEMICALS Cash Flow Statement Analysis

  • IG PETROCHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 119.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -725 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -803 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 304 million from the Rs 150 million net cash flows seen during FY20.

IG PETROCHEMICALS 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 837 1,833 119.0%
Cash Flow from Investing Activities Rs m -1,040 -725 -
Cash Flow from Financing Activities Rs m 353 -803 -
Net Cash Flow Rs m 150 304 102.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IG PETROCHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.1, an improvement from the EPS of Rs 6.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 817.0, stands at 9.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.3 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 343.8 364.9
TTM Earnings per share Rs 6.8 61.1
Diluted earnings per share Rs 6.8 61.1
Price to Cash Flow x 49.5 11.3
TTM P/E ratio x 9.0 9.0
Price / Book Value ratio x 1.0 1.2
Market Cap Rs m 25,159 25,159
Dividends per share (Unadj.) Rs 2.0 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IG PETROCHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x 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 18.4x during FY21, from 3.0x 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 22.9% during FY21, from 3.3% 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 6.1% 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 15.3% during FY21, from 3.2% 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 1.3
Debtors’ Days Days 494 646
Interest coverage x 3.0 18.4
Debt to equity ratio x 0.2 0.1
Return on assets % 3.2 15.3
Return on equity % 3.3 22.9
Return on capital employed % 6.1 29.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how IG PETROCHEMICALS has performed over the last 5 years, please visit here.

IG PETROCHEMICALS Share Price Performance

Over the last one year, IG PETROCHEMICALS share price has moved up from Rs 313.5 to Rs 817.0, registering a gain of Rs 503.5 or around 160.6%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

(To know more, check out historical annual results for IG PETROCHEMICALS and quarterly results for IG PETROCHEMICALS)

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