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N.R.AGARWAL 2020-21 Annual Report Analysis

Wed, 31 Mar

N.R.AGARWAL 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.

N.R.AGARWAL Income Statement Analysis

• Operating income during the year fell 18.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY21 as against 15.4% in FY20.
• Depreciation charges increased by 4.8% and finance costs decreased by 15.5% YoY, respectively.
• Other income declined by 31.4% YoY.
• Net profit for the year declined by 51.0% YoY.
• Net profit margins during the year declined from 8.3% in FY20 to 5.0% in FY21.

N.R.AGARWAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	14,049	11,456	-18.5%
Other income	Rs m	122	84	-31.4%
Total Revenues	Rs m	14,171	11,540	-18.6%
Gross profit	Rs m	2,162	1,326	-38.7%
Depreciation	Rs m	315	330	4.8%
Interest	Rs m	359	303	-15.5%
Profit before tax	Rs m	1,609	776	-51.8%
Tax	Rs m	442	204	-53.9%
Profit after tax	Rs m	1,167	572	-51.0%
Gross profit margin	%	15.4	11.6
Effective tax rate	%	27.5	26.3
Net profit margin	%	8.3	5.0

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N.R.AGARWAL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 52.7%.
• Long-term debt down at Rs 461 million as compared to Rs 1 billion during FY20, a fall of 64.9%.
• Current assets rose 19% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 8%.

N.R.AGARWAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,188	4,765	13.8
Current Liabilities	Rs m	1,975	3,016	52.7
Long-term Debt	Rs m	1,312	461	-64.9
Total Liabilities	Rs m	8,654	9,330	7.8
Current assets	Rs m	2,615	3,119	19.3
Fixed Assets	Rs m	6,039	6,211	2.9
Total Assets	Rs m	8,654	9,330	7.8

N.R.AGARWAL Cash Flow Statement Analysis

• N.R.AGARWAL's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -478 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -668 million, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 16 million from the Rs 0 million net cash flows seen during FY20.

N.R.AGARWAL 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	1,915	1,161	-39.3%
Cash Flow from Investing Activities	Rs m	-522	-478	-
Cash Flow from Financing Activities	Rs m	-1,393	-668	-
Net Cash Flow	Rs m	0	16	-

Current Valuations for N.R.AGARWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.6, an decline from the EPS of Rs 68.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 237.6, stands at 7.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.1 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	825.5	673.1
TTM Earnings per share	Rs	68.6	33.6
Diluted earnings per share	Rs	68.6	33.6
Price to Cash Flow	x	1.7	4.1
TTM P/E ratio	x	2.1	7.1
Price / Book Value ratio	x	1.0	0.8
Market Cap	Rs m	4,109	3,659
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for N.R.AGARWAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.3x 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 deteriorated and stood at 3.6x during FY21, from 5.5x 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 declined and down at 12.0% during FY21, from 27.9% 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 20.7% during FY21, from 35.8% 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 declined and down at 9.4% during FY21, from 17.6% 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	1.3	1.0
Debtors’ Days	Days	313	392
Interest coverage	x	5.5	3.6
Debt to equity ratio	x	0.3	0.1
Return on assets	%	17.6	9.4
Return on equity	%	27.9	12.0
Return on capital employed	%	35.8	20.7

To see how N.R.AGARWAL has performed over the last 5 years, please visit here.

N.R.AGARWAL Share Price Performance

Over the last one year, N.R.AGARWAL share price has moved up from Rs 146.1 to Rs 237.6, registering a gain of Rs 91.5 or around 62.6%.

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

(To know more, check out historical annual results for N.R.AGARWAL and quarterly results for N.R.AGARWAL)

Read: Latest Annual Report Analysis of N.R.AGARWAL