MOLD-TEK PACKAGING 2020-21 Annual Report Analysis

Wed, 31 Mar

MOLD-TEK PACKAGING 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.

MOLD-TEK PACKAGING Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.8% in FY21 as against 17.5% in FY20.
• Depreciation charges increased by 11.9% and finance costs decreased by 3.9% YoY, respectively.
• Other income declined by 23.1% YoY.
• Net profit for the year grew by 28.1% YoY.
• Net profit margins during the year grew from 8.5% in FY20 to 10.0% in FY21.

MOLD-TEK PACKAGING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,382	4,789	9.3%
Other income	Rs m	12	9	-23.1%
Total Revenues	Rs m	4,394	4,798	9.2%
Gross profit	Rs m	768	946	23.1%
Depreciation	Rs m	192	215	11.9%
Interest	Rs m	105	100	-3.9%
Profit before tax	Rs m	483	639	32.3%
Tax	Rs m	109	160	46.7%
Profit after tax	Rs m	374	480	28.1%
Gross profit margin	%	17.5	19.8
Effective tax rate	%	22.5	25.0
Net profit margin	%	8.5	10.0

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MOLD-TEK PACKAGING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 17.7%.
• Long-term debt down at Rs 166 million as compared to Rs 252 million during FY20, a fall of 34.0%.
• Current assets rose 32% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 20%.

MOLD-TEK PACKAGING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,971	2,403	21.9
Current Liabilities	Rs m	1,389	1,636	17.7
Long-term Debt	Rs m	252	166	-34.0
Total Liabilities	Rs m	3,759	4,517	20.2
Current assets	Rs m	1,409	1,856	31.7
Fixed Assets	Rs m	2,350	2,662	13.3
Total Assets	Rs m	3,759	4,517	20.2

MOLD-TEK PACKAGING Cash Flow Statement Analysis

• MOLD-TEK PACKAGING's cash flow from operating activities (CFO) during FY21 stood at Rs 684 million, an improvement of 14.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -588 million, an improvement of 127.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -96 million, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 million from the Rs 2 million net cash flows seen during FY20.

MOLD-TEK PACKAGING 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	599	684	14.2%
Cash Flow from Investing Activities	Rs m	-258	-588	-
Cash Flow from Financing Activities	Rs m	-339	-96	-
Net Cash Flow	Rs m	2	1	-66.7%

Current Valuations for MOLD-TEK PACKAGING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.9, an improvement from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 392.7, stands at 27.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	158.0	169.1
TTM Earnings per share	Rs	13.5	16.9
Diluted earnings per share	Rs	11.3	14.5
Price to Cash Flow	x	10.1	11.8
TTM P/E ratio	x	15.3	27.0
Price / Book Value ratio	x	3.3	3.4
Market Cap	Rs m	6,488	8,218
Dividends per share (Unadj.)	Rs	5.0	7.0

Ratio Analysis for MOLD-TEK PACKAGING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.0x 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 7.4x during FY21, from 5.6x 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 20.0% during FY21, from 19.0% 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 improved and stood at 28.8% during FY21, from 26.4% 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 12.8% during FY21, from 12.7% 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	1.0	1.1
Debtors’ Days	Days	491	687
Interest coverage	x	5.6	7.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.7	12.8
Return on equity	%	19.0	20.0
Return on capital employed	%	26.4	28.8

To see how MOLD-TEK PACKAGING has performed over the last 5 years, please visit here.

MOLD-TEK PACKAGING Share Price Performance

Over the last one year, MOLD-TEK PACKAGING share price has moved up from Rs 173.3 to Rs 392.7, registering a gain of Rs 219.4 or around 126.6%.

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

(To know more, check out historical annual results for MOLD-TEK PACKAGING and quarterly results for MOLD-TEK PACKAGING)

Read: Latest Annual Report Analysis of MOLD-TEK PACKAGING