INDO RAMA SYN 2020-21 Annual Report Analysis

Wed, 31 Mar

INDO RAMA SYN 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.

INDO RAMA SYN Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 309.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.5% in FY21 as against 1.6% in FY20.
• Depreciation charges decreased by 60.7% and finance costs decreased by 28.6% YoY, respectively.
• Other income grew by 1.1% YoY.
• Net profit for the year declined by 135.8% YoY.
• Net profit margins during the year grew from 15.0% in FY20 to 5.5% in FY21.

INDO RAMA SYN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,075	20,429	-3.1%
Other income	Rs m	318	322	1.1%
Total Revenues	Rs m	21,393	20,750	-3.0%
Gross profit	Rs m	-339	710	-309.2%
Depreciation	Rs m	860	338	-60.7%
Interest	Rs m	923	659	-28.6%
Profit before tax	Rs m	-1,804	34	-101.9%
Tax	Rs m	1,361	-1,100	-180.8%
Profit after tax	Rs m	-3,165	1,134	-135.8%
Gross profit margin	%	-1.6	3.5
Effective tax rate	%	-75.4	-3,244.5
Net profit margin	%	-15.0	5.5

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INDO RAMA SYN Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 11 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 21.0%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY20, a fall of 24.0%.
• Current assets rose 21% and stood at Rs 8 billion, while fixed assets fell 7% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 5%.

INDO RAMA SYN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,220	3,333	50.1
Current Liabilities	Rs m	9,101	11,012	21.0
Long-term Debt	Rs m	3,065	2,329	-24.0
Total Liabilities	Rs m	14,795	15,519	4.9
Current assets	Rs m	6,307	7,661	21.5
Fixed Assets	Rs m	8,488	7,858	-7.4
Total Assets	Rs m	14,795	15,519	4.9

INDO RAMA SYN Cash Flow Statement Analysis

• INDO RAMA SYN's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -175 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -93 million from the Rs 81 million net cash flows seen during FY20.

INDO RAMA SYN 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	-1,190	1,822	-
Cash Flow from Investing Activities	Rs m	397	-175	-
Cash Flow from Financing Activities	Rs m	874	-1,740	-
Net Cash Flow	Rs m	81	-93	-

Current Valuations for INDO RAMA SYN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs -12.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.9, stands at 9.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	80.7	78.2
TTM Earnings per share	Rs	-12.1	4.3
Diluted earnings per share	Rs	-12.1	4.3
Price to Cash Flow	x	-1.3	5.3
TTM P/E ratio	x	-0.9	9.0
Price / Book Value ratio	x	2.7	2.3
Market Cap	Rs m	5,921	7,733
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDO RAMA SYN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY21, from 0.7x 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 1.1x during FY21, from -1.0x 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 34.0% during FY21, from -142.6% 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 12.2% during FY21, from -16.7% 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 11.6% during FY21, from -15.2% 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	0.7	0.7
Debtors’ Days	Days	2	2
Interest coverage	x	-1.0	1.1
Debt to equity ratio	x	1.4	0.7
Return on assets	%	-15.2	11.6
Return on equity	%	-142.6	34.0
Return on capital employed	%	-16.7	12.2

To see how INDO RAMA SYN has performed over the last 5 years, please visit here.

INDO RAMA SYN Share Price Performance

Over the last one year, INDO RAMA SYN share price has moved up from Rs 11.5 to Rs 38.9, registering a gain of Rs 27.4 or around 238.3%.

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

(To know more, check out historical annual results for INDO RAMA SYN and quarterly results for INDO RAMA SYN)

Read: Latest Annual Report Analysis of INDO RAMA SYN