ADANI PORTS & SEZ 2020-21 Annual Report Analysis

Wed, 31 Mar

ADANI PORTS & SEZ 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.

ADANI PORTS & SEZ Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.6% in FY21 as against 47.6% in FY20.
• Depreciation charges increased by 25.4% and finance costs increased by 15.6% YoY, respectively.
• Other income grew by 10.4% YoY.
• Net profit for the year grew by 33.6% YoY.
• Net profit margins during the year grew from 33.1% in FY20 to 40.3% in FY21.

ADANI PORTS & SEZ Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	114,388	125,496	9.7%
Other income	Rs m	24,332	26,855	10.4%
Total Revenues	Rs m	138,719	152,351	9.8%
Gross profit	Rs m	54,461	79,834	46.6%
Depreciation	Rs m	16,803	21,073	25.4%
Interest	Rs m	19,506	22,553	15.6%
Profit before tax	Rs m	42,483	63,063	48.4%
Tax	Rs m	4,594	12,433	170.6%
Profit after tax	Rs m	37,889	50,630	33.6%
Gross profit margin	%	47.6	63.6
Effective tax rate	%	10.8	19.7
Net profit margin	%	33.1	40.3

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ADANI PORTS & SEZ Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 72 billion as compared to Rs 77 billion in FY20, thereby witnessing an decrease of -6.2%.
• Long-term debt stood at Rs 329 billion as compared to Rs 262 billion during FY20, a growth of 25.8%.
• Current assets fell 13% and stood at Rs 128 billion, while fixed assets rose 33% and stood at Rs 616 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 744 billion as against Rs 610 billion during FY20, thereby witnessing a growth of 22%.

ADANI PORTS & SEZ Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	256,235	306,283	19.5
Current Liabilities	Rs m	76,965	72,160	-6.2
Long-term Debt	Rs m	261,813	329,355	25.8
Total Liabilities	Rs m	609,941	744,421	22.0
Current assets	Rs m	148,199	128,306	-13.4
Fixed Assets	Rs m	461,741	616,114	33.4
Total Assets	Rs m	609,941	744,421	22.0

ADANI PORTS & SEZ Cash Flow Statement Analysis

• ADANI PORTS & SEZ's cash flow from operating activities (CFO) during FY21 stood at Rs 76 billion, an improvement of 2.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -141 billion, an improvement of 1,784.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 35 billion, an improvement of 183% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -30 billion from the Rs 24 billion net cash flows seen during FY20.

ADANI PORTS & SEZ 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	74,018	75,558	2.1%
Cash Flow from Investing Activities	Rs m	-7,504	-141,427	-
Cash Flow from Financing Activities	Rs m	-42,556	35,139	-
Net Cash Flow	Rs m	23,973	-29,945	-

Current Valuations for ADANI PORTS & SEZ

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an improvement from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 702.8, stands at 29.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 11.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 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	56.3	61.8
TTM Earnings per share	Rs	18.6	24.9
Diluted earnings per share	Rs	17.9	24.0
Price to Cash Flow	x	9.7	14.2
TTM P/E ratio	x	14.0	29.3
Price / Book Value ratio	x	2.5	3.3
Market Cap	Rs m	643,456	1,019,533
Dividends per share (Unadj.)	Rs	3.2	5.0

Ratio Analysis for ADANI PORTS & SEZ

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 1.9x 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 3.8x during FY21, from 3.2x 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 improved and stood at 16.5% 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 13.5% during FY21, from 12.0% 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 9.8% during FY21, from 9.4% 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	1.9	1.8
Debtors’ Days	Days	10	9
Interest coverage	x	3.2	3.8
Debt to equity ratio	x	1.0	1.1
Return on assets	%	9.4	9.8
Return on equity	%	14.8	16.5
Return on capital employed	%	12.0	13.5

To see how ADANI PORTS & SEZ has performed over the last 5 years, please visit here.

ADANI PORTS & SEZ Share Price Performance

Over the last one year, ADANI PORTS & SEZ share price has moved up from Rs 251.3 to Rs 702.8, registering a gain of Rs 451.5 or around 179.6%.

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

(To know more, check out historical annual results for ADANI PORTS & SEZ and quarterly results for ADANI PORTS & SEZ)

Read: Latest Annual Report Analysis of ADANI PORTS & SEZ