MANGALORE CHEMICALS 2020-21 Annual Report Analysis

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MANGALORE CHEMICALS 2020-21 Annual Report Analysis
Tue, 9 Nov

MANGALORE CHEMICALS 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.

MANGALORE CHEMICALS Income Statement Analysis

  • Operating income during the year fell 20.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY21 as against 7.5% in FY20.
  • Depreciation charges increased by 10.9% and finance costs decreased by 31.1% YoY, respectively.
  • Other income grew by 42.5% YoY.
  • Net profit for the year grew by 3.9% YoY.
  • Net profit margins during the year grew from 2.4% in FY20 to 3.1% in FY21.

MANGALORE CHEMICALS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 27,108 21,440 -20.9%
Other income Rs m 232 331 42.5%
Total Revenues Rs m 27,341 21,771 -20.4%
Gross profit Rs m 2,041 1,996 -2.2%
Depreciation Rs m 454 503 10.9%
Interest Rs m 1,115 768 -31.1%
Profit before tax Rs m 704 1,056 49.9%
Tax Rs m 59 385 553.6%
Profit after tax Rs m 646 671 3.9%
Gross profit margin % 7.5 9.3
Effective tax rate % 8.4 36.4
Net profit margin % 2.4 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MANGALORE CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 20 billion in FY20, thereby witnessing an decrease of -40.2%.
  • Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 33.8%.
  • Current assets fell 41% and stood at Rs 12 billion, while fixed assets rose 8% and stood at Rs 8 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 28 billion during FY20, thereby witnessing a fall of 29%.

MANGALORE CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,456 6,073 11.3
 
Current Liabilities Rs m 20,082 12,005 -40.2
Long-term Debt Rs m 2,237 1,482 -33.8
Total Liabilities Rs m 28,031 19,969 -28.8
 
Current assets Rs m 20,923 12,319 -41.1
Fixed Assets Rs m 7,108 7,650 7.6
Total Assets Rs m 28,031 19,969 -28.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MANGALORE CHEMICALS Cash Flow Statement Analysis

  • MANGALORE CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 10 billion, an improvement of 53.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 86.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY20.

MANGALORE CHEMICALS 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 6,287 9,620 53.0%
Cash Flow from Investing Activities Rs m -646 -1,206 -
Cash Flow from Financing Activities Rs m -3,927 -7,020 -
Net Cash Flow Rs m 1,713 1,394 -18.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MANGALORE CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an improvement from the EPS of Rs 5.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 73.5, stands at 10.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.4 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 228.7 180.9
TTM Earnings per share Rs 5.4 5.7
Diluted earnings per share Rs 5.4 5.7
Price to Cash Flow x 7.9 7.4
TTM P/E ratio x 10.8 10.8
Price / Book Value ratio x 0.7 1.1
Market Cap Rs m 8,711 8,711
Dividends per share (Unadj.) Rs 0.5 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MANGALORE CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 2.4x during FY21, from 1.6x 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 declined and down at 11.0% during FY21, from 11.8% 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 24.1% during FY21, from 23.6% 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 7.2% during FY21, from 6.3% 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 1.0
Debtors’ Days Days 1,947 866
Interest coverage x 1.6 2.4
Debt to equity ratio x 0.4 0.2
Return on assets % 6.3 7.2
Return on equity % 11.8 11.0
Return on capital employed % 23.6 24.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MANGALORE CHEMICALS has performed over the last 5 years, please visit here.

MANGALORE CHEMICALS Share Price Performance

Over the last one year, MANGALORE CHEMICALS share price has moved up from Rs 31.0 to Rs 73.5, registering a gain of Rs 42.5 or around 137.1%.

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

(To know more, check out historical annual results for MANGALORE CHEMICALS and quarterly results for MANGALORE CHEMICALS)

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