NATIONAL FERT 2020-21 Annual Report Analysis

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NATIONAL FERT 2020-21 Annual Report Analysis
Wed, 10 Nov

NATIONAL FERT 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.

NATIONAL FERT Income Statement Analysis

  • Operating income during the year fell 9.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 94.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.7% in FY21 as against 3.6% in FY20.
  • Depreciation charges decreased by 16.6% and finance costs decreased by 28.1% YoY, respectively.
  • Other income declined by 43.7% YoY.
  • Net profit for the year declined by 246.0% YoY.
  • Net profit margins during the year grew from 1.3% in FY20 to 2.1% in FY21.

NATIONAL FERT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 131,354 119,057 -9.4%
Other income Rs m 593 333 -43.7%
Total Revenues Rs m 131,946 119,390 -9.5%
Gross profit Rs m 4,717 9,167 94.4%
Depreciation Rs m 3,744 3,123 -16.6%
Interest Rs m 4,092 2,943 -28.1%
Profit before tax Rs m -2,527 3,435 -235.9%
Tax Rs m -817 938 -214.8%
Profit after tax Rs m -1,710 2,496 -246.0%
Gross profit margin % 3.6 7.7
Effective tax rate % 32.3 27.3
Net profit margin % -1.3 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NATIONAL FERT Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 33 billion as compared to Rs 95 billion in FY20, thereby witnessing an decrease of -65.5%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 6 billion during FY20, a growth of 8.6%.
  • Current assets fell 64% and stood at Rs 35 billion, while fixed assets rose 4% and stood at Rs 49 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 84 billion as against Rs 145 billion during FY20, thereby witnessing a fall of 42%.

NATIONAL FERT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 19,022 21,402 12.5
 
Current Liabilities Rs m 95,046 32,787 -65.5
Long-term Debt Rs m 5,969 6,480 8.6
Total Liabilities Rs m 145,360 84,304 -42.0
 
Current assets Rs m 98,157 35,217 -64.1
Fixed Assets Rs m 47,204 49,086 4.0
Total Assets Rs m 145,360 84,304 -42.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NATIONAL FERT Cash Flow Statement Analysis

  • NATIONAL FERT's cash flow from operating activities (CFO) during FY21 stood at Rs 70 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -65 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 198 million from the Rs 29 million net cash flows seen during FY20.

NATIONAL FERT 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 -3,192 70,207 -
Cash Flow from Investing Activities Rs m -8,097 -4,961 -
Cash Flow from Financing Activities Rs m 11,319 -65,048 -
Net Cash Flow Rs m 29 198 575.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NATIONAL FERT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.1, an improvement from the EPS of Rs -3.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 56.5, stands at 20.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.9 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 267.8 242.7
TTM Earnings per share Rs -3.5 5.1
Diluted earnings per share Rs -3.5 5.1
Price to Cash Flow x 13.6 4.9
TTM P/E ratio x 20.5 20.5
Price / Book Value ratio x 0.7 1.0
Market Cap Rs m 27,693 27,693
Dividends per share (Unadj.) Rs 1.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NATIONAL FERT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.0x 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 2.2x during FY21, from 0.4x 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 11.7% during FY21, from -9.0% 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 22.9% during FY21, from 6.3% 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 6.5% during FY21, from 1.6% 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 1.0 1.1
Debtors’ Days Days 21 8
Interest coverage x 0.4 2.2
Debt to equity ratio x 0.3 0.3
Return on assets % 1.6 6.5
Return on equity % -9.0 11.7
Return on capital employed % 6.3 22.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NATIONAL FERT Share Price Performance

Over the last one year, NATIONAL FERT share price has moved up from Rs 32.6 to Rs 56.5, registering a gain of Rs 23.9 or around 73.4%.

Overall, the S&P BSE SENSEX is up 41.7% over the year.

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

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