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KAVERI SEED 2020-21 Annual Report Analysis
Wed, 31 Mar

KAVERI SEED 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.

KAVERI SEED Income Statement Analysis

  • Operating income during the year rose 11.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.8% in FY21 as against 27.2% in FY20.
  • Depreciation charges decreased by 13.3% and finance costs increased by 5.4% YoY, respectively.
  • Other income grew by 0.3% YoY.
  • Net profit for the year grew by 19.7% YoY.
  • Net profit margins during the year grew from 27.9% in FY20 to 30.0% in FY21.

KAVERI SEED Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 9,303 10,363 11.4%
Other income Rs m 456 457 0.3%
Total Revenues Rs m 9,759 10,821 10.9%
Gross profit Rs m 2,532 2,980 17.7%
Depreciation Rs m 257 222 -13.3%
Interest Rs m 5 5 5.4%
Profit before tax Rs m 2,727 3,210 17.7%
Tax Rs m 127 98 -23.1%
Profit after tax Rs m 2,599 3,112 19.7%
Gross profit margin % 27.2 28.8
Effective tax rate % 4.7 3.1
Net profit margin % 27.9 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

KAVERI SEED Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 17.0%.
  • Long-term debt down at Rs 11 million as compared to Rs 58 million during FY20, a fall of 81.3%.
  • Current assets rose 29% and stood at Rs 16 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 24%.

KAVERI SEED Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,587 12,444 29.8
 
Current Liabilities Rs m 5,788 6,773 17.0
Long-term Debt Rs m 58 11 -81.3
Total Liabilities Rs m 16,059 19,953 24.2
 
Current assets Rs m 12,598 16,192 28.5
Fixed Assets Rs m 3,461 3,761 8.7
Total Assets Rs m 16,059 19,953 24.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KAVERI SEED Cash Flow Statement Analysis

  • KAVERI SEED's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 31.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -291 million, an improvement of 90% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 55 million from the Rs 28 million net cash flows seen during FY20.

KAVERI SEED 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 1,917 2,519 31.4%
Cash Flow from Investing Activities Rs m 1,125 -2,173 -
Cash Flow from Financing Activities Rs m -3,014 -291 -
Net Cash Flow Rs m 28 55 96.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KAVERI SEED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.6, an improvement from the EPS of Rs 43.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 513.6, stands at 9.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.9 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 154.2 171.8
TTM Earnings per share Rs 43.1 51.6
Diluted earnings per share Rs 44.6 53.4
Price to Cash Flow x 7.0 8.9
TTM P/E ratio x 7.6 9.6
Price / Book Value ratio x 2.7 2.4
Market Cap Rs m 25,638 29,558
Dividends per share (Unadj.) Rs 3.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KAVERI SEED

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 2.2x 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 636.7x during FY21, from 570.2x 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 25.0% during FY21, from 27.1% 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 25.8% during FY21, from 28.3% 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 15.6% during FY21, from 16.2% 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 2.2 2.4
Debtors’ Days Days 463 372
Interest coverage x 570.2 636.7
Debt to equity ratio x 0.0 0.0
Return on assets % 16.2 15.6
Return on equity % 27.1 25.0
Return on capital employed % 28.3 25.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how KAVERI SEED has performed over the last 5 years, please visit here.

KAVERI SEED Share Price Performance

Over the last one year, KAVERI SEED share price has moved up from Rs 340.8 to Rs 513.6, registering a gain of Rs 172.8 or around 50.7%.

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

(To know more, check out historical annual results for KAVERI SEED and quarterly results for KAVERI SEED)

Annual Report FAQs

What is the current share price of KAVERI SEED?

KAVERI SEED currently trades at Rs 623.2 per share. You can check out the latest share price performance of KAVERI SEED here...

What was the revenue of KAVERI SEED in FY21? How does it compare to earlier years?

The revenues of KAVERI SEED stood at Rs 10,821 m in FY21, which was up 10.9% compared to Rs 9,759 m reported in FY20.

KAVERI SEED's revenue has grown from Rs 7,380 m in FY17 to Rs 10,821 m in FY21.

Over the past 5 years, the revenue of KAVERI SEED has grown at a CAGR of 10.0%.

What was the net profit of KAVERI SEED in FY21? How does it compare to earlier years?

The net profit of KAVERI SEED stood at Rs 3,112 m in FY21, which was up 19.7% compared to Rs 2,599 m reported in FY20.

This compares to a net profit of Rs 2,174 m in FY19 and a net profit of Rs 2,114 m in FY18.

Over the past 5 years, KAVERI SEED net profit has grown at a CAGR of 41.7%.

What does the cash flow statement of KAVERI SEED reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KAVERI SEED reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,519 m as compared to Rs 1,917 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,173 m as compared to Rs 1,125 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -291 m as compared to Rs -3,014 m in FY20.

Here's the cash flow statement of KAVERI SEED for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,5901,4831,2791,9172,519
From Investments-1,5037088241,125-2,173
From Financial Activity28-2,262-2,191-3,014-291
Net Cashflow115-71-882855

What does the Key Ratio analysis of KAVERI SEED reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KAVERI SEED reveals:

  • Operating profit margins witnessed a fall and down at 28.8% in FY21 as against 27.2% in FY20.
  • Net profit margins grew from 27.9% in FY20 to 30.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of KAVERI SEED for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.427.026.127.228.8
Net Profit Margin (%)11.025.826.927.930.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of KAVERI SEED

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