AGRO TECH FOODS 2020-21 Annual Report Analysis

Wed, 31 Mar

AGRO TECH FOODS 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.

AGRO TECH FOODS Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY21 as against 7.0% in FY20.
• Depreciation charges decreased by 4.0% and finance costs decreased by 0.5% YoY, respectively.
• Other income grew by 38.0% YoY.
• Net profit for the year declined by 7.6% YoY.
• Net profit margins during the year declined from 4.1% in FY20 to 3.5% in FY21.

AGRO TECH FOODS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,355	8,925	6.8%
Other income	Rs m	35	49	38.0%
Total Revenues	Rs m	8,390	8,974	7.0%
Gross profit	Rs m	583	584	0.1%
Depreciation	Rs m	194	186	-4.0%
Interest	Rs m	19	18	-0.5%
Profit before tax	Rs m	406	428	5.4%
Tax	Rs m	68	116	70.2%
Profit after tax	Rs m	338	313	-7.6%
Gross profit margin	%	7.0	6.5
Effective tax rate	%	16.7	27.0
Net profit margin	%	4.1	3.5

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AGRO TECH FOODS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 842 million as compared to Rs 690 million in FY20, thereby witnessing an increase of 22.1%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 8%.

AGRO TECH FOODS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,939	4,220	7.2
Current Liabilities	Rs m	690	842	22.1
Long-term Debt	Rs m	38	0	-100.0
Total Liabilities	Rs m	5,049	5,434	7.6
Current assets	Rs m	2,076	2,153	3.7
Fixed Assets	Rs m	2,973	3,282	10.4
Total Assets	Rs m	5,049	5,434	7.6

AGRO TECH FOODS Cash Flow Statement Analysis

• AGRO TECH FOODS's cash flow from operating activities (CFO) during FY21 stood at Rs 624 million, an improvement of 45.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -425 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -131 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 66 million from the Rs 6 million net cash flows seen during FY20.

AGRO TECH FOODS 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	429	624	45.6%
Cash Flow from Investing Activities	Rs m	-435	-425	-
Cash Flow from Financing Activities	Rs m	6	-131	-
Net Cash Flow	Rs m	6	66	953.8%

Current Valuations for AGRO TECH FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.8, an decline from the EPS of Rs 13.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 838.4, stands at 65.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 32.3 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	342.8	366.2
TTM Earnings per share	Rs	13.9	12.8
Diluted earnings per share	Rs	13.9	12.8
Price to Cash Flow	x	17.5	32.3
TTM P/E ratio	x	27.6	65.3
Price / Book Value ratio	x	3.4	3.8
Market Cap	Rs m	13,258	16,112
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for AGRO TECH FOODS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY21, from 3.0x 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 24.2x during FY21, from 22.9x 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 7.4% during FY21, from 8.6% 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 declined and down at 10.6% during FY21, from 10.7% 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 declined and down at 6.1% during FY21, from 7.1% 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	3.0	2.6
Debtors’ Days	Days	33	15
Interest coverage	x	22.9	24.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	6.1
Return on equity	%	8.6	7.4
Return on capital employed	%	10.7	10.6

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

AGRO TECH FOODS Share Price Performance

Over the last one year, AGRO TECH FOODS share price has moved up from Rs 383.2 to Rs 838.4, registering a gain of Rs 455.2 or around 118.8%.

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

(To know more, check out historical annual results for AGRO TECH FOODS and quarterly results for AGRO TECH FOODS)

Read: Latest Annual Report Analysis of AGRO TECH FOODS