LA OPALA RG 2020-21 Annual Report Analysis

Wed, 31 Mar

LA OPALA RG 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.

LA OPALA RG Income Statement Analysis

• Operating income during the year fell 21.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.4% in FY21 as against 38.6% in FY20.
• Depreciation charges decreased by 23.4% and finance costs decreased by 55.8% YoY, respectively.
• Other income declined by 52.4% YoY.
• Net profit for the year declined by 41.2% YoY.
• Net profit margins during the year declined from 31.2% in FY20 to 23.5% in FY21.

LA OPALA RG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,700	2,113	-21.8%
Other income	Rs m	170	81	-52.4%
Total Revenues	Rs m	2,870	2,194	-23.6%
Gross profit	Rs m	1,042	684	-34.4%
Depreciation	Rs m	160	122	-23.4%
Interest	Rs m	6	3	-55.8%
Profit before tax	Rs m	1,046	640	-38.9%
Tax	Rs m	204	144	-29.3%
Profit after tax	Rs m	843	496	-41.2%
Gross profit margin	%	38.6	32.4
Effective tax rate	%	19.5	22.5
Net profit margin	%	31.2	23.5

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LA OPALA RG Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 453 million as compared to Rs 395 million in FY20, thereby witnessing an increase of 14.6%.
• Current assets rose 3% and stood at Rs 4 billion, while fixed assets rose 49% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 21%.

LA OPALA RG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,451	6,658	22.1
Current Liabilities	Rs m	395	453	14.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,111	7,417	21.4
Current assets	Rs m	3,645	3,750	2.9
Fixed Assets	Rs m	2,466	3,667	48.7
Total Assets	Rs m	6,111	7,417	21.4

LA OPALA RG Cash Flow Statement Analysis

• LA OPALA RG's cash flow from operating activities (CFO) during FY21 stood at Rs 833 million, an improvement of 13.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -792 million, an improvement of 75.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -41 million, an improvement of 86% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 0 million from the Rs -6 million net cash flows seen during FY20.

LA OPALA RG 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	732	833	13.8%
Cash Flow from Investing Activities	Rs m	-451	-792	-
Cash Flow from Financing Activities	Rs m	-287	-41	-
Net Cash Flow	Rs m	-6	0	-

Current Valuations for LA OPALA RG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 221.6, stands at 49.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 11.6 times.
• The company's price to cash flow (P/CF) ratio stood at 35.3 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	24.3	19.0
TTM Earnings per share	Rs	7.6	4.5
Diluted earnings per share	Rs	7.6	4.5
Price to Cash Flow	x	16.5	35.3
TTM P/E ratio	x	19.7	49.6
Price / Book Value ratio	x	3.7	3.3
Market Cap	Rs m	20,230	21,828
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for LA OPALA RG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 8.3x during FY21, from 9.2x 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 252.9x during FY21, from 183.0x 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 declined and down at 7.4% during FY21, from 15.5% 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 9.6% during FY21, from 19.3% 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 6.7% during FY21, from 13.9% 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	9.2	8.3
Debtors’ Days	Days	592	653
Interest coverage	x	183.0	252.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.9	6.7
Return on equity	%	15.5	7.4
Return on capital employed	%	19.3	9.6

To see how LA OPALA RG has performed over the last 5 years, please visit here.

LA OPALA RG Share Price Performance

Over the last one year, LA OPALA RG share price has moved up from Rs 149.3 to Rs 221.6, registering a gain of Rs 72.3 or around 48.4%.

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

(To know more, check out historical annual results for LA OPALA RG and quarterly results for LA OPALA RG)

Read: Latest Annual Report Analysis of LA OPALA RG