RADICO KHAITAN 2020-21 Annual Report Analysis

Wed, 31 Mar

RADICO KHAITAN 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.

RADICO KHAITAN Income Statement Analysis

• Operating income during the year rose 21.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a growth and down at 7.4% in FY21 as against 7.5% in FY20.
• Depreciation charges increased by 2.6% and finance costs decreased by 30.0% YoY, respectively.
• Other income grew by 56.4% YoY.
• Net profit for the year grew by 18.9% YoY.
• Net profit margins during the year grew from 5.0% in FY20 to 4.9% in FY21.

RADICO KHAITAN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	-45,638	-55,311	21.2%
Other income	Rs m	133	207	56.4%
Total Revenues	Rs m	-45,506	-55,104	21.1%
Gross profit	Rs m	3,439	4,086	18.8%
Depreciation	Rs m	525	539	2.6%
Interest	Rs m	319	223	-30.0%
Profit before tax	Rs m	2,727	3,531	29.5%
Tax	Rs m	452	825	82.7%
Profit after tax	Rs m	2,275	2,706	18.9%
Gross profit margin	%	-7.5	-7.4
Effective tax rate	%	16.6	23.4
Net profit margin	%	-5.0	-4.9

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RADICO KHAITAN Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 8 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -2.9%.
• Long-term debt down at Rs 3 million as compared to Rs 15 million during FY20, a fall of 82.5%.
• Current assets rose 14% and stood at Rs 16 billion, while fixed assets rose 3% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 25 billion during FY20, thereby witnessing a growth of 9%.

RADICO KHAITAN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,427	17,927	16.2
Current Liabilities	Rs m	8,434	8,190	-2.9
Long-term Debt	Rs m	15	3	-82.5
Total Liabilities	Rs m	24,828	27,144	9.3
Current assets	Rs m	14,221	16,247	14.3
Fixed Assets	Rs m	10,608	10,896	2.7
Total Assets	Rs m	24,828	27,144	9.3

RADICO KHAITAN Cash Flow Statement Analysis

• RADICO KHAITAN's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 531.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -832 million, an improvement of 23.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 19 million net cash flows seen during FY20.

RADICO KHAITAN 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	597	3,770	531.7%
Cash Flow from Investing Activities	Rs m	-673	-832	-
Cash Flow from Financing Activities	Rs m	95	-1,828	-
Net Cash Flow	Rs m	19	1,110	5,899.9%

Current Valuations for RADICO KHAITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an improvement from the EPS of Rs 17.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 560.8, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at -1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 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	-341.7	-414.1
TTM Earnings per share	Rs	17.0	20.3
Diluted earnings per share	Rs	17.0	20.2
Price to Cash Flow	x	12.8	18.3
TTM P/E ratio	x	15.7	27.7
Price / Book Value ratio	x	2.9	3.3
Market Cap	Rs m	44,011	59,298
Dividends per share (Unadj.)	Rs	2.0	2.4

Ratio Analysis for RADICO KHAITAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 16.8x during FY21, from 9.5x 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 improved and stood at 15.1% during FY21, from 14.7% 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 improved and stood at 20.9% during FY21, from 19.7% 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 10.8% during FY21, from 10.4% 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	1.7	2.0
Debtors’ Days	Days	-658	-460
Interest coverage	x	9.5	16.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	10.8
Return on equity	%	14.7	15.1
Return on capital employed	%	19.7	20.9

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

RADICO KHAITAN Share Price Performance

Over the last one year, RADICO KHAITAN share price has moved up from Rs 267.2 to Rs 560.8, registering a gain of Rs 293.7 or around 109.9%.

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

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

Read: Latest Annual Report Analysis of RADICO KHAITAN