KAJARIA CERAMICS 2020-21 Annual Report Analysis

Wed, 31 Mar

KAJARIA CERAMICS 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.

KAJARIA CERAMICS Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.3% in FY21 as against 14.8% in FY20.
• Depreciation charges decreased by 1.3% and finance costs decreased by 45.1% YoY, respectively.
• Other income declined by 11.8% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year grew from 9.0% in FY20 to 11.1% in FY21.

KAJARIA CERAMICS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	28,080	27,809	-1.0%
Other income	Rs m	242	213	-11.8%
Total Revenues	Rs m	28,322	28,022	-1.1%
Gross profit	Rs m	4,159	5,088	22.3%
Depreciation	Rs m	1,081	1,067	-1.3%
Interest	Rs m	195	107	-45.1%
Profit before tax	Rs m	3,125	4,127	32.1%
Tax	Rs m	589	1,038	76.2%
Profit after tax	Rs m	2,535	3,089	21.8%
Gross profit margin	%	14.8	18.3
Effective tax rate	%	18.9	25.2
Net profit margin	%	9.0	11.1

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KAJARIA CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -11.1%.
• Long-term debt stood at Rs 313 million as compared to Rs 215 million during FY20, a growth of 45.6%.
• Current assets rose 9% and stood at Rs 13 billion, while fixed assets fell 1% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 4%.

KAJARIA CERAMICS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,087	18,653	9.2
Current Liabilities	Rs m	5,168	4,596	-11.1
Long-term Debt	Rs m	215	313	45.6
Total Liabilities	Rs m	24,371	25,253	3.6
Current assets	Rs m	11,876	12,927	8.9
Fixed Assets	Rs m	12,495	12,326	-1.4
Total Assets	Rs m	24,371	25,253	3.6

KAJARIA CERAMICS Cash Flow Statement Analysis

• KAJARIA CERAMICS's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 126.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 228.2% 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 87 million from the Rs -60 million net cash flows seen during FY20.

KAJARIA CERAMICS 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	2,244	5,088	126.7%
Cash Flow from Investing Activities	Rs m	-901	-2,955	-
Cash Flow from Financing Activities	Rs m	-1,404	-2,045	-
Net Cash Flow	Rs m	-60	87	-

Current Valuations for KAJARIA CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 924.1, stands at 47.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.2 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	176.6	174.8
TTM Earnings per share	Rs	15.9	19.4
Diluted earnings per share	Rs	15.9	19.4
Price to Cash Flow	x	16.6	25.2
TTM P/E ratio	x	23.6	47.6
Price / Book Value ratio	x	4.6	5.6
Market Cap	Rs m	77,802	104,628
Dividends per share (Unadj.)	Rs	3.0	10.0

Ratio Analysis for KAJARIA CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY21, from 2.3x 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 39.5x during FY21, from 17.0x 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 16.6% during FY21, from 14.8% 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 22.3% during FY21, from 19.2% 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 improved and stood at 12.7% during FY21, from 11.2% 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	2.3	2.8
Debtors’ Days	Days	5	6
Interest coverage	x	17.0	39.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	12.7
Return on equity	%	14.8	16.6
Return on capital employed	%	19.2	22.3

To see how KAJARIA CERAMICS has performed over the last 5 years, please visit here.

KAJARIA CERAMICS Share Price Performance

Over the last one year, KAJARIA CERAMICS share price has moved up from Rs 376.6 to Rs 924.1, registering a gain of Rs 547.6 or around 145.4%.

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

(To know more, check out historical annual results for KAJARIA CERAMICS and quarterly results for KAJARIA CERAMICS)

Read: Latest Annual Report Analysis of KAJARIA CERAMICS