ORICON ENTER. 2020-21 Annual Report Analysis

Wed, 31 Mar

ORICON ENTER. 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.

ORICON ENTER. Income Statement Analysis

• Operating income during the year fell 28.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.0% in FY21 as against 10.7% in FY20.
• Depreciation charges decreased by 7.6% and finance costs decreased by 10.9% YoY, respectively.
• Other income declined by 21.6% YoY.
• Net profit for the year declined by 127.5% YoY.
• Net profit margins during the year declined from 2.8% in FY20 to 1.1% in FY21.

ORICON ENTER. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,215	6,575	-28.7%
Other income	Rs m	332	261	-21.6%
Total Revenues	Rs m	9,548	6,835	-28.4%
Gross profit	Rs m	990	660	-33.4%
Depreciation	Rs m	904	835	-7.6%
Interest	Rs m	177	158	-10.9%
Profit before tax	Rs m	241	-73	-130.2%
Tax	Rs m	-14	-3	-81.2%
Profit after tax	Rs m	256	-70	-127.5%
Gross profit margin	%	10.7	10.0
Effective tax rate	%	-6.0	3.7
Net profit margin	%	2.8	-1.1

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ORICON ENTER. Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -22.9%.
• Long-term debt down at Rs 582 million as compared to Rs 697 million during FY20, a fall of 16.5%.
• Current assets rose 0% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 15 billion during FY20, thereby witnessing a fall of 2%.

ORICON ENTER. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,659	9,236	6.7
Current Liabilities	Rs m	3,461	2,668	-22.9
Long-term Debt	Rs m	697	582	-16.5
Total Liabilities	Rs m	14,998	14,644	-2.4
Current assets	Rs m	5,121	5,141	0.4
Fixed Assets	Rs m	9,878	9,503	-3.8
Total Assets	Rs m	14,998	14,644	-2.4

ORICON ENTER. Cash Flow Statement Analysis

• ORICON ENTER.'s cash flow from operating activities (CFO) during FY21 stood at Rs 834 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -533 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -149 million, an improvement of 95% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 152 million from the Rs 45 million net cash flows seen during FY20.

ORICON ENTER. 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	2,716	834	-69.3%
Cash Flow from Investing Activities	Rs m	84	-533	-
Cash Flow from Financing Activities	Rs m	-2,755	-149	-
Net Cash Flow	Rs m	45	152	240.9%

Current Valuations for ORICON ENTER.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.4, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.0, stands at -95.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.1 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	58.7	41.9
TTM Earnings per share	Rs	1.6	-0.4
Diluted earnings per share	Rs	1.6	-0.4
Price to Cash Flow	x	1.3	4.1
TTM P/E ratio	x	5.9	-95.0
Price / Book Value ratio	x	0.4	0.3
Market Cap	Rs m	3,039	3,117
Dividends per share (Unadj.)	Rs	0.8	0.5

Ratio Analysis for ORICON ENTER.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x 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 0.5x during FY21, from 2.4x 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 declined and down at -0.8% during FY21, from 3.0% 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 declined and down at 0.9% during FY21, from 4.5% 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 0.6% during FY21, from 2.9% 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	1.5	1.9
Debtors’ Days	Days	728	811
Interest coverage	x	2.4	0.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	2.9	0.6
Return on equity	%	3.0	-0.8
Return on capital employed	%	4.5	0.9

To see how ORICON ENTER. has performed over the last 5 years, please visit here.

ORICON ENTER. Share Price Performance

Over the last one year, ORICON ENTER. share price has moved up from Rs 9.8 to Rs 18.0, registering a gain of Rs 8.2 or around 83.2%.

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

(To know more, check out historical annual results for ORICON ENTER. and quarterly results for ORICON ENTER.)