NITIN SPINNER 2020-21 Annual Report Analysis

Wed, 31 Mar

NITIN SPINNER 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.

NITIN SPINNER Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.8% in FY21 as against 11.8% in FY20.
• Depreciation charges increased by 12.8% and finance costs increased by 10.9% YoY, respectively.
• Other income declined by 10.8% YoY.
• Net profit for the year grew by 189.2% YoY.
• Net profit margins during the year grew from 1.7% in FY20 to 4.2% in FY21.

NITIN SPINNER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	14,381	16,244	13.0%
Other income	Rs m	21	19	-10.8%
Total Revenues	Rs m	14,402	16,263	12.9%
Gross profit	Rs m	1,698	2,573	51.5%
Depreciation	Rs m	807	910	12.8%
Interest	Rs m	556	616	10.9%
Profit before tax	Rs m	356	1,065	198.8%
Tax	Rs m	118	376	218.3%
Profit after tax	Rs m	238	689	189.2%
Gross profit margin	%	11.8	15.8
Effective tax rate	%	33.2	35.3
Net profit margin	%	1.7	4.2

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NITIN SPINNER Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 12.0%.
• Long-term debt down at Rs 6 billion as compared to Rs 7 billion during FY20, a fall of 16.6%.
• Current assets rose 23% and stood at Rs 6 billion, while fixed assets fell 7% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 2%.

NITIN SPINNER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,940	5,633	14.0
Current Liabilities	Rs m	4,249	4,759	12.0
Long-term Debt	Rs m	6,763	5,639	-16.6
Total Liabilities	Rs m	16,453	16,763	1.9
Current assets	Rs m	4,892	6,033	23.3
Fixed Assets	Rs m	11,561	10,730	-7.2
Total Assets	Rs m	16,453	16,763	1.9

NITIN SPINNER Cash Flow Statement Analysis

• NITIN SPINNER's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 57.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -112 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 million from the Rs -26 million net cash flows seen during FY20.

NITIN SPINNER 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	982	1,549	57.7%
Cash Flow from Investing Activities	Rs m	-2,167	-112	-
Cash Flow from Financing Activities	Rs m	1,159	-1,438	-
Net Cash Flow	Rs m	-26	-1	-

Current Valuations for NITIN SPINNER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.3, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.1, stands at 6.6 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 2.2 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	255.8	288.9
TTM Earnings per share	Rs	4.2	12.3
Diluted earnings per share	Rs	4.2	12.3
Price to Cash Flow	x	1.5	2.2
TTM P/E ratio	x	6.6	6.6
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	3,283	3,442
Dividends per share (Unadj.)	Rs	0.6	1.5

Ratio Analysis for NITIN SPINNER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.2x 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 2.7x 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 improved and stood at 12.2% during FY21, from 4.8% 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 14.9% during FY21, from 7.8% 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 improved and stood at 7.8% during FY21, from 4.8% 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	1.2	1.3
Debtors’ Days	Days	388	373
Interest coverage	x	1.6	2.7
Debt to equity ratio	x	1.4	1.0
Return on assets	%	4.8	7.8
Return on equity	%	4.8	12.2
Return on capital employed	%	7.8	14.9

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

NITIN SPINNER Share Price Performance

Over the last one year, NITIN SPINNER share price has moved up from Rs 28.0 to Rs 81.1, registering a gain of Rs 53.1 or around 189.5%.

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

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

Read: Latest Annual Report Analysis of NITIN SPINNER