ORIENT BELL 2020-21 Annual Report Analysis

Wed, 31 Mar

ORIENT BELL 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 BELL Income Statement Analysis

• Operating income during the year rose 2.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.9% in FY21 as against 5.3% in FY20.
• Depreciation charges decreased by 0.1% and finance costs decreased by 30.2% YoY, respectively.
• Other income declined by 57.8% YoY.
• Net profit for the year grew by 2.9% YoY.
• Net profit margins during the year grew from 1.4% in FY20 to 1.4% in FY21.

ORIENT BELL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,923	5,025	2.1%
Other income	Rs m	52	22	-57.8%
Total Revenues	Rs m	4,975	5,047	1.4%
Gross profit	Rs m	261	348	33.4%
Depreciation	Rs m	206	206	-0.1%
Interest	Rs m	81	57	-30.2%
Profit before tax	Rs m	26	108	309.8%
Tax	Rs m	-42	38	-189.4%
Profit after tax	Rs m	68	70	2.9%
Gross profit margin	%	5.3	6.9
Effective tax rate	%	-159.6	34.8
Net profit margin	%	1.4	1.4

ORIENT BELL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 14.2%.
• Long-term debt down at Rs 244 million as compared to Rs 334 million during FY20, a fall of 27.0%.
• Current assets rose 22% and stood at Rs 2 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 4%.

ORIENT BELL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,375	2,479	4.4
Current Liabilities	Rs m	1,053	1,203	14.2
Long-term Debt	Rs m	334	244	-27.0
Total Liabilities	Rs m	4,225	4,394	4.0
Current assets	Rs m	1,753	2,137	21.9
Fixed Assets	Rs m	2,472	2,257	-8.7
Total Assets	Rs m	4,225	4,394	4.0

ORIENT BELL Cash Flow Statement Analysis

• ORIENT BELL's cash flow from operating activities (CFO) during FY21 stood at Rs 186 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 51 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -230 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 million from the Rs 0 million net cash flows seen during FY20.

ORIENT BELL 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	645	186	-71.2%
Cash Flow from Investing Activities	Rs m	-40	51	-
Cash Flow from Financing Activities	Rs m	-605	-230	-
Net Cash Flow	Rs m	0	6	7,950.0%

Current Valuations for ORIENT BELL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 204.1, stands at 41.9 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	344.7	350.2
TTM Earnings per share	Rs	4.8	4.9
Diluted earnings per share	Rs	4.7	4.9
Price to Cash Flow	x	2.9	8.0
TTM P/E ratio	x	11.7	41.9
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	1,729	2,199
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for ORIENT BELL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.7x 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 2.9x during FY21, from 1.3x 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 2.8% during FY21, from 2.9% 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 improved and stood at 6.0% 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 declined and down at 2.9% during FY21, from 3.5% 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	1.7	1.8
Debtors’ Days	Days	645	673
Interest coverage	x	1.3	2.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	3.5	2.9
Return on equity	%	2.9	2.8
Return on capital employed	%	4.0	6.0

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

ORIENT BELL Share Price Performance

Over the last one year, ORIENT BELL share price has moved up from Rs 55.6 to Rs 204.1, registering a gain of Rs 148.6 or around 267.4%.

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

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

Read: Latest Annual Report Analysis of ORIENT BELL