MAX VENTURES & INDUSTRIES 2020-21 Annual Report Analysis

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MAX VENTURES & INDUSTRIES 2020-21 Annual Report Analysis
Tue, 9 Nov

MAX VENTURES & INDUSTRIES 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.

MAX VENTURES & INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in FY21 as against 12.1% in FY20.
  • Depreciation charges increased by 7.5% and finance costs decreased by 18.7% YoY, respectively.
  • Other income grew by 2.0% YoY.
  • Net profit for the year grew by 29.5% YoY.
  • Net profit margins during the year grew from 3.2% in FY20 to 4.8% in FY21.

MAX VENTURES & INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 13,822 11,723 -15.2%
Other income Rs m 173 176 2.0%
Total Revenues Rs m 13,995 11,899 -15.0%
Gross profit Rs m 1,667 1,715 2.9%
Depreciation Rs m 461 496 7.5%
Interest Rs m 710 577 -18.7%
Profit before tax Rs m 669 819 22.3%
Tax Rs m 228 248 8.5%
Profit after tax Rs m 441 571 29.5%
Gross profit margin % 12.1 14.6
Effective tax rate % 34.1 30.3
Net profit margin % 3.2 4.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MAX VENTURES & INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -39.0%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY20, a growth of 51.4%.
  • Current assets fell 3% and stood at Rs 5 billion, while fixed assets rose 2% and stood at Rs 14 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 1%.

MAX VENTURES & INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 8,745 8,816 0.8
 
Current Liabilities Rs m 5,096 3,106 -39.0
Long-term Debt Rs m 2,583 3,910 51.4
Total Liabilities Rs m 18,752 18,917 0.9
 
Current assets Rs m 4,787 4,667 -2.5
Fixed Assets Rs m 13,965 14,250 2.0
Total Assets Rs m 18,752 18,917 0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MAX VENTURES & INDUSTRIES Cash Flow Statement Analysis

  • MAX VENTURES & INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -421 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -926 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -21 million from the Rs 48 million net cash flows seen during FY20.

MAX VENTURES & INDUSTRIES 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 2,330 1,325 -43.1%
Cash Flow from Investing Activities Rs m -1,717 -421 -
Cash Flow from Financing Activities Rs m -566 -926 -
Net Cash Flow Rs m 48 -21 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MAX VENTURES & INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 3.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 148.1, stands at 24.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.4 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 94.3 80.0
TTM Earnings per share Rs 3.0 3.9
Diluted earnings per share Rs 3.0 3.9
Price to Cash Flow x 24.1 20.4
TTM P/E ratio x 24.1 24.1
Price / Book Value ratio x 0.7 0.8
Market Cap Rs m 21,715 21,743
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MAX VENTURES & INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 0.9x 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 2.4x during FY21, from 1.9x 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 improved and stood at 6.5% during FY21, from 5.0% 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 11.0% during FY21, from 12.2% 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 declined and down at 6.1% during FY21, from 6.1% 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 0.9 1.5
Debtors’ Days Days 342 409
Interest coverage x 1.9 2.4
Debt to equity ratio x 0.3 0.4
Return on assets % 6.1 6.1
Return on equity % 5.0 6.5
Return on capital employed % 12.2 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MAX VENTURES & INDUSTRIES has performed over the last 5 years, please visit here.

MAX VENTURES & INDUSTRIES Share Price Performance

Over the last one year, MAX VENTURES & INDUSTRIES share price has moved up from Rs 37.6 to Rs 148.1, registering a gain of Rs 110.5 or around 293.9%.

Overall, the S&P BSE SENSEX is up 48.8% over the year.

(To know more, check out historical annual results for MAX VENTURES & INDUSTRIES and quarterly results for MAX VENTURES & INDUSTRIES)

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