PRATAAP SNACKS 2020-21 Annual Report Analysis

Wed, 31 Mar

PRATAAP SNACKS 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.

PRATAAP SNACKS Income Statement Analysis

• Operating income during the year fell 16.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.4% in FY21 as against 6.7% in FY20.
• Depreciation charges decreased by 11.6% and finance costs decreased by 16.0% YoY, respectively.
• Other income declined by 3.9% YoY.
• Net profit for the year declined by 69.8% YoY.
• Net profit margins during the year declined from 3.4% in FY20 to 1.2% in FY21.

PRATAAP SNACKS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,938	11,711	-16.0%
Other income	Rs m	92	88	-3.9%
Total Revenues	Rs m	14,030	11,799	-15.9%
Gross profit	Rs m	937	631	-32.7%
Depreciation	Rs m	617	546	-11.6%
Interest	Rs m	75	63	-16.0%
Profit before tax	Rs m	337	111	-67.1%
Tax	Rs m	-132	-31	-76.7%
Profit after tax	Rs m	469	142	-69.8%
Gross profit margin	%	6.7	5.4
Effective tax rate	%	-39.3	-27.9
Net profit margin	%	3.4	1.2

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PRATAAP SNACKS 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 13.5%.
• Current assets fell 1% and stood at Rs 2 billion, while fixed assets fell 5% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 9 billion during FY20, thereby witnessing a fall of 4%.

PRATAAP SNACKS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,053	6,173	2.0
Current Liabilities	Rs m	1,190	1,352	13.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,206	8,856	-3.8
Current assets	Rs m	2,418	2,391	-1.1
Fixed Assets	Rs m	6,788	6,465	-4.8
Total Assets	Rs m	9,206	8,856	-3.8

PRATAAP SNACKS Cash Flow Statement Analysis

• PRATAAP SNACKS 's cash flow from operating activities (CFO) during FY21 stood at Rs 774 million, an improvement of 3.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -778 million, an improvement of 57.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -143 million, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -147 million from the Rs -22 million net cash flows seen during FY20.

PRATAAP SNACKS 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	751	774	3.0%
Cash Flow from Investing Activities	Rs m	-493	-778	-
Cash Flow from Financing Activities	Rs m	-280	-143	-
Net Cash Flow	Rs m	-22	-147	-

Current Valuations for PRATAAP SNACKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.0, an decline from the EPS of Rs 20.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 578.7, stands at 95.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 20.4 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	594.4	499.4
TTM Earnings per share	Rs	20.0	6.0
Diluted earnings per share	Rs	20.0	6.0
Price to Cash Flow	x	10.7	20.4
TTM P/E ratio	x	24.7	95.9
Price / Book Value ratio	x	2.9	2.3
Market Cap	Rs m	17,414	14,014
Dividends per share (Unadj.)	Rs	1.0	0.5

Ratio Analysis for PRATAAP SNACKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 2.0x 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 2.8x during FY21, from 5.5x 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 2.3% during FY21, from 7.8% 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 2.8% during FY21, from 6.8% 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 2.3% during FY21, from 5.9% 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	2.0	1.8
Debtors’ Days	Days	85	83
Interest coverage	x	5.5	2.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.9	2.3
Return on equity	%	7.8	2.3
Return on capital employed	%	6.8	2.8

To see how PRATAAP SNACKS has performed over the last 5 years, please visit here.

PRATAAP SNACKS Share Price Performance

Over the last one year, PRATAAP SNACKS share price has moved up from Rs 494.8 to Rs 578.7, registering a gain of Rs 83.9 or around 16.9%.

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

(To know more, check out historical annual results for PRATAAP SNACKS and quarterly results for PRATAAP SNACKS )

Read: Latest Annual Report Analysis of PRATAAP SNACKS