MARICO 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

MARICO 2020-21 Annual Report Analysis
Mon, 18 Oct

MARICO 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.

MARICO Income Statement Analysis

  • Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.9% in FY21 as against 19.6% in FY20.
  • Depreciation charges decreased by 0.7% and finance costs decreased by 32.0% YoY, respectively.
  • Other income declined by 23.6% YoY.
  • Net profit for the year grew by 15.1% YoY.
  • Net profit margins during the year grew from 14.0% in FY20 to 14.7% in FY21.

MARICO Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 73,150 80,480 10.0%
Other income Rs m 1,270 970 -23.6%
Total Revenues Rs m 74,420 81,450 9.4%
Gross profit Rs m 14,370 16,010 11.4%
Depreciation Rs m 1,400 1,390 -0.7%
Interest Rs m 500 340 -32.0%
Profit before tax Rs m 13,740 15,250 11.0%
Tax Rs m 3,310 3,240 -2.1%
Profit after tax Rs m 10,430 12,010 15.1%
Gross profit margin % 19.6 19.9
Effective tax rate % 24.1 21.2
Net profit margin % 14.0 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MARICO Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 20 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 14.8%.
  • Long-term debt down at Rs 80 million as compared to Rs 100 million during FY20, a fall of 20.0%.
  • Current assets rose 6% and stood at Rs 33 billion, while fixed assets rose 20% and stood at Rs 20 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 53 billion as against Rs 48 billion during FY20, thereby witnessing a growth of 11%.

MARICO Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 29,980 32,110 7.1
 
Current Liabilities Rs m 17,530 20,130 14.8
Long-term Debt Rs m 100 80 -20.0
Total Liabilities Rs m 48,110 53,240 10.7
 
Current assets Rs m 31,490 33,360 5.9
Fixed Assets Rs m 16,620 19,880 19.6
Total Assets Rs m 48,110 53,240 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MARICO Cash Flow Statement Analysis

  • MARICO's cash flow from operating activities (CFO) during FY21 stood at Rs 21 billion, an improvement of 70.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion, an improvement of 2,305.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -11 billion, an improvement of 2% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 160 million from the Rs 450 million net cash flows seen during FY20.

MARICO 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 12,140 20,680 70.3%
Cash Flow from Investing Activities Rs m -390 -9,380 -
Cash Flow from Financing Activities Rs m -11,470 -11,190 -
Net Cash Flow Rs m 450 160 -64.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MARICO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an improvement from the EPS of Rs 8.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 578.0, stands at 63.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 14.0 times, while the price to sales ratio stands at 5.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 55.7 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 56.7 62.3
TTM Earnings per share Rs 8.1 9.3
Diluted earnings per share Rs 8.1 9.3
Price to Cash Flow x 63.1 55.7
TTM P/E ratio x 63.4 63.4
Price / Book Value ratio x 13.7 14.0
Market Cap Rs m 746,208 746,410
Dividends per share (Unadj.) Rs 6.8 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MARICO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 1.8x 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 45.9x during FY21, from 28.5x 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 37.4% during FY21, from 34.8% 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 48.4% during FY21, from 47.3% 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 improved and stood at 23.2% during FY21, from 22.7% 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 1.8 1.7
Debtors’ Days Days 3 2
Interest coverage x 28.5 45.9
Debt to equity ratio x 0.0 0.0
Return on assets % 22.7 23.2
Return on equity % 34.8 37.4
Return on capital employed % 47.3 48.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MARICO Share Price Performance

Over the last one year, MARICO share price has moved up from Rs 362.6 to Rs 578.0, registering a gain of Rs 215.4 or around 59.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 15,300.4 (up 0.5%). Over the last one year it has moved up from 10,985.4 to 15,300.4, a gain of 4,315 points (up 39.3%).

Overall, the S&P BSE SENSEX is up 52.4% over the year.

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

Equitymaster requests your view! Post a comment on "MARICO 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

MARICO Announces Quarterly Results (1QFY22); Net Profit Down 6.4% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, MARICO has posted a net profit of Rs 4 bn (down 6.4% YoY). Sales on the other hand came in at Rs 25 bn (up 31.2% YoY). Read on for a complete analysis of MARICO's quarterly results.

MARICO Announces Quarterly Results (3QFY21); Net Profit Up 13.0% (Quarterly Result Update)

Jan 28, 2021 | Updated on Jan 28, 2021

For the quarter ended December 2020, MARICO has posted a net profit of Rs 3 bn (up 13.0% YoY). Sales on the other hand came in at Rs 21 bn (up 16.3% YoY). Read on for a complete analysis of MARICO's quarterly results.

Bajaj Consumer Care Q4 Results: Net Profit Jumps Over Two-Fold (Company Info)

Apr 21, 2021

Key takeaways from Bajaj Consumer Care's March quarter results.

Nestle India Sees Double-Digit Growth Across Segments in March Quarter (Company Info)

Apr 21, 2021

Key takeaways from Nestle's March quarter (Q1CY21) results.

MARICO 2019-20 Annual Report Analysis (Annual Result Update)

Dec 28, 2020 | Updated on Dec 28, 2020

Here's an analysis of the annual report of MARICO for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of MARICO. Also includes updates on the valuation of MARICO.

More Views on News

Most Popular

10 Indian Companies with the Fastest Growth in Dividend Payouts...(Views On News)

Jan 10, 2022

These companies have been consistently paying higher dividends for several years.

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

Watch Out for these 4 Indian Companies Betting Big on EV Supply Chain(Views On News)

Jan 11, 2022

The upside in supply chain players could be huge but a delay in the transition to EVs, or any policy related hiccups could end the momentum.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

Time to Buy Energy Stocks(Fast Profits Daily)

Jan 14, 2022

Energy is a sector that looks set to take off. It's time to get in.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK MARICO

COMPARE MARICO WITH

MARKET STATS