PIRAMAL ENTERPRISES 2020-21 Annual Report Analysis

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PIRAMAL ENTERPRISES 2020-21 Annual Report Analysis
Tue, 26 Oct

PIRAMAL ENTERPRISES 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.

PIRAMAL ENTERPRISES Income Statement Analysis

  • Operating income during the year fell 11.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 58.7% in FY21 as against 47.6% in FY20.
  • Depreciation charges increased by 7.8% and finance costs decreased by 20.9% YoY, respectively.
  • Other income declined by 30.2% YoY.
  • Net profit for the year declined by 329.4% YoY.
  • Net profit margins during the year grew from 3.1% in FY20 to 8.2% in FY21.

PIRAMAL ENTERPRISES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 144,231 128,094 -11.2%
Other income Rs m 5,211 3,636 -30.2%
Total Revenues Rs m 149,442 131,730 -11.9%
Gross profit Rs m 68,631 75,231 9.6%
Depreciation Rs m 5,203 5,609 7.8%
Interest Rs m 53,206 42,085 -20.9%
Profit before tax Rs m 15,433 31,173 102.0%
Tax Rs m 20,117 20,429 1.6%
Profit after tax Rs m -4,684 10,744 -329.4%
Gross profit margin % 47.6 58.7
Effective tax rate % 130.4 65.5
Net profit margin % -3.1 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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PIRAMAL ENTERPRISES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 133 billion as compared to Rs 237 billion in FY20, thereby witnessing an decrease of -43.6%.
  • Long-term debt stood at Rs 281 billion as compared to Rs 203 billion during FY20, a growth of 38.4%.
  • Current assets rose 23% and stood at Rs 199 billion, while fixed assets rose 0% and stood at Rs 628 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 826 billion as against Rs 787 billion during FY20, thereby witnessing a growth of 5%.

PIRAMAL ENTERPRISES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 305,716 340,180 11.3
 
Current Liabilities Rs m 236,730 133,473 -43.6
Long-term Debt Rs m 203,063 280,968 38.4
Total Liabilities Rs m 786,990 826,493 5.0
 
Current assets Rs m 161,131 198,674 23.3
Fixed Assets Rs m 625,859 627,818 0.3
Total Assets Rs m 786,990 826,493 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PIRAMAL ENTERPRISES Cash Flow Statement Analysis

  • PIRAMAL ENTERPRISES's cash flow from operating activities (CFO) during FY21 stood at Rs 37 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -28 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 21 billion, an improvement of 116% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 30 billion from the Rs 20 billion net cash flows seen during FY20.

PIRAMAL ENTERPRISES 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 75,163 36,645 -51.2%
Cash Flow from Investing Activities Rs m 74,687 -27,723 -
Cash Flow from Financing Activities Rs m -130,186 20,716 -
Net Cash Flow Rs m 19,883 29,701 49.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PIRAMAL ENTERPRISES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.6, an improvement from the EPS of Rs -20.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,675.0, stands at 61.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 36.9 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 639.5 567.9
TTM Earnings per share Rs -20.8 47.6
Diluted earnings per share Rs -20.8 47.6
Price to Cash Flow x 1,162.9 36.9
TTM P/E ratio x 61.4 61.4
Price / Book Value ratio x 1.3 0.9
Market Cap Rs m 603,315 603,315
Dividends per share (Unadj.) Rs 14.0 33.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PIRAMAL ENTERPRISES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 0.7x 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 1.7x during FY21, from 1.3x 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 3.2% during FY21, from -1.5% 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 11.8% during FY21, from 13.5% 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 6.4% during FY21, from 6.2% 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 0.7 1.5
Debtors’ Days Days 3 4
Interest coverage x 1.3 1.7
Debt to equity ratio x 0.7 0.8
Return on assets % 6.2 6.4
Return on equity % -1.5 3.2
Return on capital employed % 13.5 11.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PIRAMAL ENTERPRISES Share Price Performance

Over the last one year, PIRAMAL ENTERPRISES share price has moved up from Rs 1,300.8 to Rs 2,675.0, registering a gain of Rs 1,374.2 or around 105.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,170.0 (up 0.5%). Over the last one year it has moved up from 19,369.0 to 25,170.0, a gain of 5,801 points (up 29.9%).

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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Related Views on News

PIRAMAL ENTERPRISES Announces Quarterly Results (1QFY22); Net Profit Down 20.0% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, PIRAMAL ENTERPRISES has posted a net profit of Rs 4 bn (down 20.0% YoY). Sales on the other hand came in at Rs 29 bn (down 1.0% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

PIRAMAL ENTERPRISES Announces Quarterly Results (1QFY21); Net Profit Up 22.1% (Quarterly Result Update)

Aug 25, 2020 | Updated on Aug 25, 2020

For the quarter ended June 2020, PIRAMAL ENTERPRISES has posted a net profit of Rs 5 bn (up 22.1% YoY). Sales on the other hand came in at Rs 29 bn (down 16.2% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

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