RALLIS 2020-21 Annual Report Analysis

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RALLIS 2020-21 Annual Report Analysis
Tue, 26 Oct

RALLIS 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.

RALLIS Income Statement Analysis

  • Operating income during the year rose 7.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 21.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY21 as against 12.2% in FY20.
  • Depreciation charges increased by 4.2% and finance costs decreased by 30.7% YoY, respectively.
  • Other income grew by 17.8% YoY.
  • Net profit for the year grew by 24.4% YoY.
  • Net profit margins during the year grew from 8.0% in FY20 to 9.3% in FY21.

RALLIS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 22,518 24,294 7.9%
Other income Rs m 343 405 17.8%
Total Revenues Rs m 22,862 24,699 8.0%
Gross profit Rs m 2,744 3,339 21.7%
Depreciation Rs m 615 641 4.2%
Interest Rs m 98 68 -30.7%
Profit before tax Rs m 2,375 3,035 27.8%
Tax Rs m 538 749 39.3%
Profit after tax Rs m 1,837 2,286 24.4%
Gross profit margin % 12.2 13.7
Effective tax rate % 22.7 24.7
Net profit margin % 8.0 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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RALLIS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 10 billion in FY20, thereby witnessing an decrease of -4.5%.
  • Long-term debt down at Rs 78 million as compared to Rs 124 million during FY20, a fall of 37.0%.
  • Current assets rose 3% and stood at Rs 17 billion, while fixed assets rose 12% and stood at Rs 9 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 6%.

RALLIS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 14,095 15,908 12.9
 
Current Liabilities Rs m 9,574 9,145 -4.5
Long-term Debt Rs m 124 78 -37.0
Total Liabilities Rs m 24,485 25,886 5.7
 
Current assets Rs m 16,142 16,554 2.6
Fixed Assets Rs m 8,342 9,332 11.9
Total Assets Rs m 24,485 25,886 5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RALLIS Cash Flow Statement Analysis

  • RALLIS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -674 million, an improvement of 9% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -122 million from the Rs 165 million net cash flows seen during FY20.

RALLIS 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 3,368 2,168 -35.6%
Cash Flow from Investing Activities Rs m -2,459 -1,615 -
Cash Flow from Financing Activities Rs m -744 -674 -
Net Cash Flow Rs m 165 -122 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RALLIS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.8, an improvement from the EPS of Rs 9.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 262.2, stands at 26.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.4 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 115.8 124.9
TTM Earnings per share Rs 9.4 11.8
Diluted earnings per share Rs 9.4 11.8
Price to Cash Flow x 20.8 17.4
TTM P/E ratio x 26.5 26.5
Price / Book Value ratio x 2.6 3.1
Market Cap Rs m 50,990 50,990
Dividends per share (Unadj.) Rs 2.5 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RALLIS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.7x 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 improved and stood at 45.8x during FY21, from 25.3x 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 improved and stood at 14.4% during FY21, from 13.0% 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 improved and stood at 19.4% during FY21, from 17.4% 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 improved and stood at 9.1% during FY21, from 7.9% 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 1.7 1.8
Debtors’ Days Days 730 610
Interest coverage x 25.3 45.8
Debt to equity ratio x 0.0 0.0
Return on assets % 7.9 9.1
Return on equity % 13.0 14.4
Return on capital employed % 17.4 19.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RALLIS Share Price Performance

Over the last one year, RALLIS share price has moved up from Rs 254.3 to Rs 262.2, registering a gain of Rs 7.9 or around 3.1%.

Overall, the S&P BSE SENSEX is up 51.1% over the year.

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

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Related Views on News

RALLIS Announces Quarterly Results (2QFY22); Net Profit Down 31.9% (Quarterly Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

For the quarter ended September 2021, RALLIS has posted a net profit of Rs 564 m (down 31.9% YoY). Sales on the other hand came in at Rs 7 bn (up 0.4% YoY). Read on for a complete analysis of RALLIS's quarterly results.

RALLIS Announces Quarterly Results (1QFY22); Net Profit Down 10.4% (Quarterly Result Update)

Jul 22, 2021 | Updated on Jul 22, 2021

For the quarter ended June 2021, RALLIS has posted a net profit of Rs 823 m (down 10.4% YoY). Sales on the other hand came in at Rs 7 bn (up 11.7% YoY). Read on for a complete analysis of RALLIS's quarterly results.

RALLIS 2019-20 Annual Report Analysis (Annual Result Update)

Dec 10, 2020 | Updated on Dec 10, 2020

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

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