HUHTAMAKI INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.0% in CY21 as against 9.5% in CY20.
• Depreciation charges decreased by 5.9% and finance costs increased by 2.2% YoY, respectively.
• Other income grew by 16.1% YoY.
• Net profit for the year declined by 123.6% YoY.
• Net profit margins during the year declined from 3.9% in CY20 to 0.9% in CY21.

HUHTAMAKI INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	24,627	26,253	6.6%
Other income	Rs m	81	94	16.1%
Total Revenues	Rs m	24,708	26,347	6.6%
Gross profit	Rs m	2,345	789	-66.4%
Depreciation	Rs m	979	922	-5.9%
Interest	Rs m	270	276	2.2%
Profit before tax	Rs m	1,176	-316	-126.8%
Tax	Rs m	216	-89	-141.1%
Profit after tax	Rs m	960	-227	-123.6%
Gross profit margin	%	9.5	3.0
Effective tax rate	%	18.4	28.1
Net profit margin	%	3.9	-0.9

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HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 8 billion as compared to Rs 6 billion in CY20, thereby witnessing an increase of 30.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during CY20, a growth of 60.0%.
• Current assets rose 20% and stood at Rs 11 billion, while fixed assets rose 5% and stood at Rs 7 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 18 billion as against Rs 16 billion during CY20, thereby witnessing a growth of 14%.

HUHTAMAKI INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	7,587	7,109	-6.3
Current Liabilities	Rs m	6,323	8,220	30.0
Long-term Debt	Rs m	1,250	2,000	60.0
Total Liabilities	Rs m	15,751	17,966	14.1
Current assets	Rs m	9,138	11,002	20.4
Fixed Assets	Rs m	6,613	6,964	5.3
Total Assets	Rs m	15,751	17,966	14.1

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY21 stood at Rs -277 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -559 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs 486 million, an improvement of 166% on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs -349 million from the Rs 225 million net cash flows seen during CY20.

HUHTAMAKI INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	1,693	-277	-
Cash Flow from Investing Activities	Rs m	-727	-559	-
Cash Flow from Financing Activities	Rs m	-742	486	-
Net Cash Flow	Rs m	225	-349	-

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.0, an decline from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 227.8, stands at -75.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	326.1	347.6
TTM Earnings per share	Rs	12.7	-3.0
Diluted earnings per share	Rs	12.7	-3.0
Price to Cash Flow	x	12.2	30.3
TTM P/E ratio	x	24.6	-75.8
Price / Book Value ratio	x	2.5	3.0
Market Cap	Rs m	18,918	21,054
Dividends per share (Unadj.)	Rs	3.0	1.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during CY21, from 1.4x during CY20. 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 -0.1x during CY21, from 5.4x during CY20. 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 -3.2% during CY21, from 12.7% during CY21. 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 -0.4% during CY21, from 16.4% during CY20. 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 0.3% during CY21, from 7.8% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.4	1.3
Debtors’ Days	Days	79	88
Interest coverage	x	5.4	-0.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	7.8	0.3
Return on equity	%	12.7	-3.2
Return on capital employed	%	16.4	-0.4

To see how HUHTAMAKI INDIA has performed over the last 5 years, please visit here.

HUHTAMAKI INDIA Share Price Performance

Over the last one year, HUHTAMAKI INDIA share price has moved up from Rs 195.8 to Rs 280.3, registering a gain of Rs 84.6 or around 43.2%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

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

(To know more, check out historical annual results for HUHTAMAKI INDIA and quarterly results for HUHTAMAKI INDIA)

Read: Latest Annual Report Analysis of HUHTAMAKI INDIA