RICO AUTO 2020-21 Annual Report Analysis

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RICO AUTO 2020-21 Annual Report Analysis
Thu, 11 Nov

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 0.9% 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 -0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 45.6, stands at 65.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.3 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 6.4 9.3
TTM P/E ratio x 65.7 65.7
Price / Book Value ratio x 1.0 0.7
Market Cap Rs m 6,169 6,169
Dividends per share (Unadj.) Rs 0.3 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 29.2 to Rs 45.6, registering a gain of Rs 16.4 or around 56.2%.

Overall, the S&P BSE SENSEX is up 41.7% over the year.

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

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