NATIONAL PEROXIDE 2020-21 Annual Report Analysis

Wed, 31 Mar

NATIONAL PEROXIDE 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 PEROXIDE Income Statement Analysis

• Operating income during the year rose 12.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY21 as against 13.4% in FY20.
• Depreciation charges increased by 55.9% and finance costs increased by 362.4% YoY, respectively.
• Other income declined by 28.8% YoY.
• Net profit for the year grew by 18.2% YoY.
• Net profit margins during the year grew from 9.4% in FY20 to 9.8% in FY21.

NATIONAL PEROXIDE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,912	2,150	12.4%
Other income	Rs m	180	128	-28.8%
Total Revenues	Rs m	2,092	2,278	8.9%
Gross profit	Rs m	256	297	16.0%
Depreciation	Rs m	112	175	55.9%
Interest	Rs m	27	127	362.4%
Profit before tax	Rs m	296	123	-58.4%
Tax	Rs m	116	-89	-176.3%
Profit after tax	Rs m	179	212	18.2%
Gross profit margin	%	13.4	13.8
Effective tax rate	%	39.4	-72.3
Net profit margin	%	9.4	9.8

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

NATIONAL PEROXIDE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -26.4%.
• Current assets fell 13% and stood at Rs 2 billion, while fixed assets rose 22% and stood at Rs 13 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 17%.

NATIONAL PEROXIDE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,021	10,668	33.0
Current Liabilities	Rs m	2,171	1,597	-26.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,347	14,429	16.9
Current assets	Rs m	1,894	1,646	-13.1
Fixed Assets	Rs m	10,453	12,783	22.3
Total Assets	Rs m	12,347	14,429	16.9

NATIONAL PEROXIDE Cash Flow Statement Analysis

• NATIONAL PEROXIDE's cash flow from operating activities (CFO) during FY21 stood at Rs 610 million, an improvement of 278.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -73 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -492 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 46 million from the Rs -86 million net cash flows seen during FY20.

NATIONAL PEROXIDE 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	161	610	278.9%
Cash Flow from Investing Activities	Rs m	-388	-73	-
Cash Flow from Financing Activities	Rs m	141	-492	-
Net Cash Flow	Rs m	-86	46	-

Current Valuations for NATIONAL PEROXIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.8, an improvement from the EPS of Rs 31.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,193.6, stands at 59.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.9 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	332.6	373.9
TTM Earnings per share	Rs	31.2	36.8
Diluted earnings per share	Rs	31.2	36.8
Price to Cash Flow	x	23.1	25.9
TTM P/E ratio	x	37.6	59.5
Price / Book Value ratio	x	1.4	0.9
Market Cap	Rs m	11,469	10,029
Dividends per share (Unadj.)	Rs	12.5	12.5

Ratio Analysis for NATIONAL PEROXIDE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.9x 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 deteriorated and stood at 2.0x during FY21, from 11.8x 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 2.0% during FY21, from 2.2% 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 2.3% during FY21, from 4.0% 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 2.3% during FY21, from 1.7% 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	0.9	1.0
Debtors’ Days	Days	616	405
Interest coverage	x	11.8	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.7	2.3
Return on equity	%	2.2	2.0
Return on capital employed	%	4.0	2.3

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

NATIONAL PEROXIDE Share Price Performance

Over the last one year, NATIONAL PEROXIDE share price has moved up from Rs 1,173.3 to Rs 2,193.6, registering a gain of Rs 1,020.4 or around 87.0%.

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

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

Read: Latest Annual Report Analysis of NATIONAL PEROXIDE