RICO AUTO 2020-21 Annual Report Analysis

Wed, 31 Mar

RICO AUTO 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.

RICO AUTO Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.7% in FY21 as against 7.6% in FY20.
• Depreciation charges increased by 0.6% and finance costs increased by 23.8% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year declined by 184.4% YoY.
• Net profit margins during the year declined from 1.2% in FY20 to 1.0% in FY21.

RICO AUTO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	14,011	14,699	4.9%
Other income	Rs m	227	185	-18.5%
Total Revenues	Rs m	14,238	14,884	4.5%
Gross profit	Rs m	1,070	843	-21.2%
Depreciation	Rs m	796	801	0.6%
Interest	Rs m	312	386	23.8%
Profit before tax	Rs m	189	-159	-184.2%
Tax	Rs m	22	-19	-183.3%
Profit after tax	Rs m	167	-141	-184.4%
Gross profit margin	%	7.6	5.7
Effective tax rate	%	11.7	11.6
Net profit margin	%	1.2	-1.0

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RICO AUTO Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 35.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 14.9%.
• Current assets rose 31% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 15%.

RICO AUTO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,210	6,058	-2.4
Current Liabilities	Rs m	5,536	7,491	35.3
Long-term Debt	Rs m	2,098	2,411	14.9
Total Liabilities	Rs m	14,229	16,352	14.9
Current assets	Rs m	5,666	7,421	31.0
Fixed Assets	Rs m	8,563	8,931	4.3
Total Assets	Rs m	14,229	16,352	14.9

RICO AUTO Cash Flow Statement Analysis

• RICO AUTO's cash flow from operating activities (CFO) during FY21 stood at Rs 227 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 798 million, an improvement of 3,184% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 20 million from the Rs -131 million net cash flows seen during FY20.

RICO AUTO 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	1,168	227	-80.6%
Cash Flow from Investing Activities	Rs m	-1,335	-1,018	-
Cash Flow from Financing Activities	Rs m	24	798	3,184.4%
Net Cash Flow	Rs m	-131	20	-

Current Valuations for RICO AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 35.6, stands at -34.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	103.6	108.7
TTM Earnings per share	Rs	1.2	-1.0
Diluted earnings per share	Rs	1.2	-1.0
Price to Cash Flow	x	2.8	6.7
TTM P/E ratio	x	16.2	-34.2
Price / Book Value ratio	x	1.0	0.7
Market Cap	Rs m	6,118	4,417
Dividends per share (Unadj.)	Rs	0.3	0.2

Ratio Analysis for RICO AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.0x 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 0.6x during FY21, from 1.6x 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 2.7% 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 2.7% during FY21, from 6.0% 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 1.5% during FY21, from 3.4% 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	1.0	1.0
Debtors’ Days	Days	7	9
Interest coverage	x	1.6	0.6
Debt to equity ratio	x	0.3	0.4
Return on assets	%	3.4	1.5
Return on equity	%	2.7	-2.3
Return on capital employed	%	6.0	2.7

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

RICO AUTO Share Price Performance

Over the last one year, RICO AUTO share price has moved up from Rs 20.0 to Rs 35.6, registering a gain of Rs 15.6 or around 77.8%.

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

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

Read: Latest Annual Report Analysis of RICO AUTO