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ORIENT ABRASIVES 2020-21 Annual Report Analysis
Wed, 31 Mar

ORIENT ABRASIVES 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.

ORIENT ABRASIVES Income Statement Analysis

  • Operating income during the year fell 12.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY21 as against 10.9% in FY20.
  • Depreciation charges increased by 8.0% and finance costs decreased by 32.6% YoY, respectively.
  • Other income declined by 68.7% YoY.
  • Net profit for the year declined by 44.7% YoY.
  • Net profit margins during the year declined from 5.9% in FY20 to 3.8% in FY21.

ORIENT ABRASIVES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 3,458 3,022 -12.6%
Other income Rs m 76 24 -68.7%
Total Revenues Rs m 3,534 3,045 -13.8%
Gross profit Rs m 375 305 -18.7%
Depreciation Rs m 103 111 8.0%
Interest Rs m 86 58 -32.6%
Profit before tax Rs m 262 160 -39.1%
Tax Rs m 56 46 -18.6%
Profit after tax Rs m 206 114 -44.7%
Gross profit margin % 10.9 10.1
Effective tax rate % 21.5 28.8
Net profit margin % 5.9 3.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ORIENT ABRASIVES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 824 million as compared to Rs 964 million in FY20, thereby witnessing an decrease of -14.5%.
  • Long-term debt down at Rs 16 million as compared to Rs 73 million during FY20, a fall of 77.7%.
  • Current assets rose 0% and stood at Rs 2 billion, while fixed assets fell 6% and stood at Rs 1 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a fall of 2%.

ORIENT ABRASIVES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,325 2,422 4.2
 
Current Liabilities Rs m 964 824 -14.5
Long-term Debt Rs m 73 16 -77.7
Total Liabilities Rs m 3,478 3,398 -2.3
 
Current assets Rs m 2,153 2,157 0.2
Fixed Assets Rs m 1,325 1,241 -6.3
Total Assets Rs m 3,478 3,398 -2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ORIENT ABRASIVES Cash Flow Statement Analysis

  • ORIENT ABRASIVES's cash flow from operating activities (CFO) during FY21 stood at Rs 295 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 26 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -298 million, an improvement of 12% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 24 million from the Rs -41 million net cash flows seen during FY20.

ORIENT ABRASIVES 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 408 295 -27.6%
Cash Flow from Investing Activities Rs m -112 26 -
Cash Flow from Financing Activities Rs m -337 -298 -
Net Cash Flow Rs m -41 24 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ORIENT ABRASIVES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 20.7, stands at 21.8 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 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.6 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 28.9 25.3
TTM Earnings per share Rs 1.7 1.0
Diluted earnings per share Rs 1.7 1.0
Price to Cash Flow x 4.4 10.6
TTM P/E ratio x 6.7 21.8
Price / Book Value ratio x 1.0 1.0
Market Cap Rs m 2,276 2,384
Dividends per share (Unadj.) Rs 0.2 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ORIENT ABRASIVES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.2x 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 deteriorated and stood at 3.7x during FY21, from 4.0x 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 4.7% during FY21, from 8.8% 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 declined and down at 8.9% during FY21, from 14.5% 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 5.1% during FY21, from 8.4% 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 2.2 2.6
Debtors’ Days Days 983 1,255
Interest coverage x 4.0 3.7
Debt to equity ratio x 0.0 0.0
Return on assets % 8.4 5.1
Return on equity % 8.8 4.7
Return on capital employed % 14.5 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ORIENT ABRASIVES has performed over the last 5 years, please visit here.

ORIENT ABRASIVES Share Price Performance

Over the last one year, ORIENT ABRASIVES share price has moved up from Rs 11.5 to Rs 20.7, registering a gain of Rs 9.3 or around 80.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

(To know more, check out historical annual results for ORIENT ABRASIVES and quarterly results for ORIENT ABRASIVES)

Annual Report FAQs

What is the current share price of ORIENT ABRASIVES?

ORIENT ABRASIVES currently trades at Rs 47.7 per share. You can check out the latest share price performance of ORIENT ABRASIVES here...

What was the revenue of ORIENT ABRASIVES in FY21? How does it compare to earlier years?

The revenues of ORIENT ABRASIVES stood at Rs 3,045 m in FY21, which was down -13.8% compared to Rs 3,534 m reported in FY20.

ORIENT ABRASIVES' revenue has grown from Rs 1,958 m in FY17 to Rs 3,045 m in FY21.

Over the past 5 years, the revenue of ORIENT ABRASIVES has grown at a CAGR of 11.7%.

What was the net profit of ORIENT ABRASIVES in FY21? How does it compare to earlier years?

The net profit of ORIENT ABRASIVES stood at Rs 114 m in FY21, which was down -44.7% compared to Rs 206 m reported in FY20.

This compares to a net profit of Rs 162 m in FY19 and a net profit of Rs 170 m in FY18.

Over the past 5 years, ORIENT ABRASIVES net profit has grown at a CAGR of 12.8%.

What does the cash flow statement of ORIENT ABRASIVES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ORIENT ABRASIVES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 295 m as compared to Rs 408 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 26 m as compared to Rs -112 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -298 m as compared to Rs -337 m in FY20.

Here's the cash flow statement of ORIENT ABRASIVES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations21614399408295
From Investments-313-216-96-11226
From Financial Activity917239-337-298
Net Cashflow-6-140-4124

What does the Key Ratio analysis of ORIENT ABRASIVES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ORIENT ABRASIVES reveals:

  • Operating profit margins witnessed a fall and stood at 10.1% in FY21 as against 10.9% in FY20.
  • Net profit margins declined from 5.9% in FY20 to 3.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of ORIENT ABRASIVES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)10.79.712.310.910.1
Net Profit Margin (%)3.65.35.25.93.8
Debt to Equity Ratio (x)0.00.10.10.00.0

Read: Latest Annual Report Analysis of ORIENT ABRASIVES

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