NGL FINE CHM 2020-21 Annual Report Analysis

Wed, 31 Mar

NGL FINE CHM 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.

NGL FINE CHM Income Statement Analysis

• Operating income during the year rose 70.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 305.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.1% in FY21 as against 13.0% in FY20.
• Depreciation charges increased by 2.7% and finance costs decreased by 16.1% YoY, respectively.
• Other income grew by 162.8% YoY.
• Net profit for the year grew by 580.5% YoY.
• Net profit margins during the year grew from 5.5% in FY20 to 22.0% in FY21.

NGL FINE CHM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,517	2,580	70.1%
Other income	Rs m	31	80	162.8%
Total Revenues	Rs m	1,547	2,660	71.9%
Gross profit	Rs m	198	801	305.4%
Depreciation	Rs m	81	83	2.7%
Interest	Rs m	26	22	-16.1%
Profit before tax	Rs m	121	776	542.7%
Tax	Rs m	37	209	458.5%
Profit after tax	Rs m	83	567	580.5%
Gross profit margin	%	13.0	31.1
Effective tax rate	%	31.0	26.9
Net profit margin	%	5.5	22.0

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NGL FINE CHM Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 421 million as compared to Rs 430 million in FY20, thereby witnessing an decrease of -2.1%.
• Long-term debt down at Rs 61 million as compared to Rs 83 million during FY20, a fall of 26.4%.
• Current assets rose 54% and stood at Rs 1 billion, while fixed assets rose 14% and stood at Rs 832 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 35%.

NGL FINE CHM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	990	1,545	56.1
Current Liabilities	Rs m	430	421	-2.1
Long-term Debt	Rs m	83	61	-26.4
Total Liabilities	Rs m	1,536	2,078	35.2
Current assets	Rs m	809	1,245	54.0
Fixed Assets	Rs m	728	832	14.4
Total Assets	Rs m	1,536	2,078	35.2

NGL FINE CHM Cash Flow Statement Analysis

• NGL FINE CHM's cash flow from operating activities (CFO) during FY21 stood at Rs 274 million, an improvement of 33.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -246 million, an improvement of 25.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -11 million, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 17 million from the Rs -4 million net cash flows seen during FY20.

NGL FINE CHM 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	205	274	33.7%
Cash Flow from Investing Activities	Rs m	-196	-246	-
Cash Flow from Financing Activities	Rs m	-13	-11	-
Net Cash Flow	Rs m	-4	17	-

Current Valuations for NGL FINE CHM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 91.8, 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 1,533.1, stands at 16.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	245.4	417.4
TTM Earnings per share	Rs	13.5	91.8
Diluted earnings per share	Rs	13.5	91.8
Price to Cash Flow	x	9.5	9.7
TTM P/E ratio	x	18.5	16.7
Price / Book Value ratio	x	2.6	4.1
Market Cap	Rs m	2,595	6,301
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for NGL FINE CHM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x 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 36.2x 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 36.7% during FY21, from 8.4% 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 49.7% during FY21, from 13.7% 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 28.4% during FY21, from 7.1% 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	3.0
Debtors’ Days	Days	63,027,059	53,138,667
Interest coverage	x	5.6	36.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.1	28.4
Return on equity	%	8.4	36.7
Return on capital employed	%	13.7	49.7

To see how NGL FINE CHM has performed over the last 5 years, please visit here.

NGL FINE CHM Share Price Performance

Over the last one year, NGL FINE CHM share price has moved up from Rs 253.4 to Rs 1,533.1, registering a gain of Rs 1,279.7 or around 505.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

(To know more, check out historical annual results for NGL FINE CHM and quarterly results for NGL FINE CHM)

Read: Latest Annual Report Analysis of NGL FINE CHM