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PIDILITE INDUSTRIES 2020-21 Annual Report Analysis
Wed, 31 Mar

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 0.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY21 as against 20.8% in FY20.
  • Depreciation charges increased by 18.1% and finance costs increased by 10.8% YoY, respectively.
  • Other income declined by 46.9% YoY.
  • Net profit for the year grew by 0.3% YoY.
  • Net profit margins during the year grew from 15.3% in FY20 to 15.4% in FY21.

PIDILITE INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 72,945 72,927 0.0%
Other income Rs m 1,494 794 -46.9%
Total Revenues Rs m 74,439 73,721 -1.0%
Gross profit Rs m 15,208 16,770 10.3%
Depreciation Rs m 1,699 2,007 18.1%
Interest Rs m 336 372 10.8%
Profit before tax Rs m 14,667 15,185 3.5%
Tax Rs m 3,477 3,964 14.0%
Profit after tax Rs m 11,190 11,222 0.3%
Gross profit margin % 20.8 23.0
Effective tax rate % 23.7 26.1
Net profit margin % 15.3 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

PIDILITE INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 24 billion as compared to Rs 16 billion in FY20, thereby witnessing an increase of 50.8%.
  • Long-term debt down at Rs 124 million as compared to Rs 251 million during FY20, a fall of 50.7%.
  • Current assets fell 7% and stood at Rs 35 billion, while fixed assets rose 92% and stood at Rs 53 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 88 billion as against Rs 65 billion during FY20, thereby witnessing a growth of 35%.

PIDILITE INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 44,447 55,675 25.3
 
Current Liabilities Rs m 16,147 24,347 50.8
Long-term Debt Rs m 251 124 -50.7
Total Liabilities Rs m 65,227 88,138 35.1
 
Current assets Rs m 37,610 35,154 -6.5
Fixed Assets Rs m 27,618 52,985 91.9
Total Assets Rs m 65,227 88,138 35.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PIDILITE INDUSTRIES Cash Flow Statement Analysis

  • PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 14 billion, an improvement of 8.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -17 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -762 million, an improvement of 91% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 5 billion net cash flows seen during FY20.

PIDILITE INDUSTRIES 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 12,796 13,921 8.8%
Cash Flow from Investing Activities Rs m 1,029 -16,879 -
Cash Flow from Financing Activities Rs m -8,492 -762 -
Net Cash Flow Rs m 5,334 -2,792 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PIDILITE INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.1, an improvement from the EPS of Rs 22.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,810.0, stands at 82.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.5 times, while the price to sales ratio stands at 12.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 58.5 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 143.6 143.5
TTM Earnings per share Rs 22.0 22.1
Diluted earnings per share Rs 22.0 22.1
Price to Cash Flow x 53.5 58.5
TTM P/E ratio x 61.6 82.0
Price / Book Value ratio x 16.0 13.9
Market Cap Rs m 711,348 774,172
Dividends per share (Unadj.) Rs 7.0 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PIDILITE INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY21, from 2.3x 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 41.8x during FY21, from 44.7x 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 20.2% during FY21, from 25.2% 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 27.9% during FY21, from 33.6% 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 13.2% during FY21, from 17.7% 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 2.3 1.4
Debtors’ Days Days 5 7
Interest coverage x 44.7 41.8
Debt to equity ratio x 0.0 0.0
Return on assets % 17.7 13.2
Return on equity % 25.2 20.2
Return on capital employed % 33.6 27.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PIDILITE INDUSTRIES has performed over the last 5 years, please visit here.

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 1,356.7 to Rs 1,810.0, registering a gain of Rs 453.3 or around 33.4%.

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

(To know more, check out historical annual results for PIDILITE INDUSTRIES and quarterly results for PIDILITE INDUSTRIES)

Annual Report FAQs

What is the current share price of PIDILITE INDUSTRIES?

PIDILITE INDUSTRIES currently trades at Rs 2,719.8 per share. You can check out the latest share price performance of PIDILITE INDUSTRIES here...

What was the revenue of PIDILITE INDUSTRIES in FY21? How does it compare to earlier years?

The revenues of PIDILITE INDUSTRIES stood at Rs 73,721 m in FY21, which was down -1.0% compared to Rs 74,439 m reported in FY20.

PIDILITE INDUSTRIES' revenue has grown from Rs 52,835 m in FY17 to Rs 73,721 m in FY21.

Over the past 5 years, the revenue of PIDILITE INDUSTRIES has grown at a CAGR of 8.7%.

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

The net profit of PIDILITE INDUSTRIES stood at Rs 11,222 m in FY21, which was up 0.3% compared to Rs 11,190 m reported in FY20.

This compares to a net profit of Rs 9,248 m in FY19 and a net profit of Rs 9,615 m in FY18.

Over the past 5 years, PIDILITE INDUSTRIES net profit has grown at a CAGR of 6.9%.

What does the cash flow statement of PIDILITE INDUSTRIES 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 PIDILITE INDUSTRIES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 13,921 m as compared to Rs 12,796 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -16,879 m as compared to Rs 1,029 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -762 m as compared to Rs -8,492 m in FY20.

Here's the cash flow statement of PIDILITE INDUSTRIES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations7,9387,9648,44812,79613,921
From Investments-8,790393-5,1311,029-16,879
From Financial Activity407-7,898-3,606-8,492-762
Net Cashflow-435468-2925,334-2,792

What does the Key Ratio analysis of PIDILITE INDUSTRIES 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 PIDILITE INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and down at 23.0% in FY21 as against 20.8% in FY20.
  • Net profit margins grew from 15.3% in FY20 to 15.4% 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 PIDILITE INDUSTRIES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)24.422.619.120.823.0
Net Profit Margin (%)16.616.213.115.315.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of PIDILITE INDUSTRIES

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