INDIGO PAINTS 2020-21 Annual Report Analysis

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INDIGO PAINTS 2020-21 Annual Report Analysis
Mon, 8 Nov

INDIGO PAINTS 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.

INDIGO PAINTS Income Statement Analysis

  • Operating income during the year rose 15.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY21 as against 14.6% in FY20.
  • Depreciation charges increased by 24.4% and finance costs decreased by 31.8% YoY, respectively.
  • Other income grew by 118.6% YoY.
  • Net profit for the year grew by 48.2% YoY.
  • Net profit margins during the year grew from 7.6% in FY20 to 9.7% in FY21.

INDIGO PAINTS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 6,248 7,233 15.8%
Other income Rs m 16 36 118.6%
Total Revenues Rs m 6,264 7,269 16.0%
Gross profit Rs m 910 1,225 34.7%
Depreciation Rs m 196 244 24.4%
Interest Rs m 56 38 -31.8%
Profit before tax Rs m 674 979 45.2%
Tax Rs m 196 271 38.0%
Profit after tax Rs m 478 709 48.2%
Gross profit margin % 14.6 16.9
Effective tax rate % 29.1 27.6
Net profit margin % 7.6 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDIGO PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 23.3%.
  • Current assets rose 157% and stood at Rs 5 billion, while fixed assets rose 28% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 92%.

INDIGO PAINTS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,955 5,630 187.9
 
Current Liabilities Rs m 1,853 2,284 23.3
Long-term Debt Rs m 247 0 -100.0
Total Liabilities Rs m 4,220 8,112 92.2
 
Current assets Rs m 2,112 5,424 156.8
Fixed Assets Rs m 2,107 2,688 27.5
Total Assets Rs m 4,220 8,112 92.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDIGO PAINTS Cash Flow Statement Analysis

  • INDIGO PAINTS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 67.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 418.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 1,468% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 391 million from the Rs -62 million net cash flows seen during FY20.

INDIGO PAINTS 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 723 1,214 67.7%
Cash Flow from Investing Activities Rs m -613 -3,179 -
Cash Flow from Financing Activities Rs m -172 2,357 -
Net Cash Flow Rs m -62 391 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INDIGO PAINTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.9, an decline from the EPS of Rs 16.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,375.0, stands at 164.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 23.5 times, while the price to sales ratio stands at 18.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 118.6 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 215.3 152.1
TTM Earnings per share Rs 16.5 14.9
Diluted earnings per share Rs 10.1 14.9
Price to Cash Flow x 102.2 118.6
TTM P/E ratio x 100.2 164.2
Price / Book Value ratio x 0.0 23.5
Market Cap Rs m 68,928 112,976
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INDIGO PAINTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x 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 26.7x during FY21, from 13.1x 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 declined and down at 12.6% during FY21, from 24.5% 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 declined and down at 18.1% during FY21, from 33.2% 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 declined and down at 9.2% during FY21, from 12.7% 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 2.4
Debtors’ Days Days 610 612
Interest coverage x 13.1 26.7
Debt to equity ratio x 0.1 0.0
Return on assets % 12.7 9.2
Return on equity % 24.5 12.6
Return on capital employed % 33.2 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how INDIGO PAINTS has performed over the last 5 years, please visit here.

INDIGO PAINTS Share Price Performance

Over the last one year, INDIGO PAINTS share price has moved up from Rs 0.0 to Rs 2,375.0, registering a gain of Rs 2,375.0 or around 0.0%.

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

(To know more, check out historical annual results for INDIGO PAINTS and quarterly results for INDIGO PAINTS)

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