PIDILITE INDUSTRIES 2020-21 Annual Report Analysis

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PIDILITE INDUSTRIES 2020-21 Annual Report Analysis
Mon, 18 Oct

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 15.0% in FY20 to 15.2% 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 % 15.0 15.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 2,503.8, stands at 96.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 10.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 96.2 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 98.7 96.2
TTM P/E ratio x 96.2 96.2
Price / Book Value ratio x 16.0 13.9
Market Cap Rs m 1,272,215 1,272,289
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 1,481.5 to Rs 2,503.8, registering a gain of Rs 1,022.3 or around 69.0%.

Overall, the S&P BSE SENSEX is up 52.4% over the year.

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

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Related Views on News

PIDILITE INDUSTRIES Announces Quarterly Results (3QFY21); Net Profit Up 29.1% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, PIDILITE INDUSTRIES has posted a net profit of Rs 4 bn (up 29.1% YoY). Sales on the other hand came in at Rs 23 bn (up 19.3% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

PIDILITE INDUSTRIES 2019-20 Annual Report Analysis (Annual Result Update)

Dec 9, 2020 | Updated on Dec 9, 2020

Here's an analysis of the annual report of PIDILITE INDUSTRIES for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of PIDILITE INDUSTRIES. Also includes updates on the valuation of PIDILITE INDUSTRIES.

PIDILITE INDUSTRIES Announces Quarterly Results (2QFY21); Net Profit Up 9.8% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, PIDILITE INDUSTRIES has posted a net profit of Rs 4 bn (up 9.8% YoY). Sales on the other hand came in at Rs 19 bn (up 4.1% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

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