SHREE RENUKA SUGARS 2020-21 Annual Report Analysis

Wed, 31 Mar

SHREE RENUKA SUGARS 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.

SHREE RENUKA SUGARS Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in FY21 as against 57.9% in FY20.
• Depreciation charges decreased by 1.1% and finance costs decreased by 24.9% YoY, respectively.
• Other income grew by 81.3% YoY.
• Net profit for the year declined by 106.0% YoY.
• Net profit margins during the year declined from 39.9% in FY20 to 2.1% in FY21.

SHREE RENUKA SUGARS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	48,812	56,485	15.7%
Other income	Rs m	587	1,064	81.3%
Total Revenues	Rs m	49,399	57,550	16.5%
Gross profit	Rs m	28,247	5,380	-81.0%
Depreciation	Rs m	2,108	2,085	-1.1%
Interest	Rs m	5,113	3,842	-24.9%
Profit before tax	Rs m	21,614	518	-97.6%
Tax	Rs m	2,116	1,683	-20.5%
Profit after tax	Rs m	19,498	-1,165	-106.0%
Gross profit margin	%	57.9	9.5
Effective tax rate	%	9.8	325.1
Net profit margin	%	39.9	-2.1

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

SHREE RENUKA SUGARS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 49 billion as compared to Rs 56 billion in FY20, thereby witnessing an decrease of -12.3%.
• Long-term debt stood at Rs 26 billion as compared to Rs 19 billion during FY20, a growth of 35.7%.
• Current assets rose 25% and stood at Rs 30 billion, while fixed assets fell 5% and stood at Rs 39 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 69 billion as against Rs 65 billion during FY20, thereby witnessing a growth of 6%.

SHREE RENUKA SUGARS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	-8,826	-6,626	-24.9
Current Liabilities	Rs m	56,242	49,334	-12.3
Long-term Debt	Rs m	18,916	25,667	35.7
Total Liabilities	Rs m	65,166	69,066	6.0
Current assets	Rs m	23,978	29,903	24.7
Fixed Assets	Rs m	41,189	39,163	-4.9
Total Assets	Rs m	65,166	69,066	6.0

SHREE RENUKA SUGARS Cash Flow Statement Analysis

• SHREE RENUKA SUGARS's cash flow from operating activities (CFO) during FY21 stood at Rs -16 billion 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 16 billion, an improvement of 347% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -319 million from the Rs 342 million net cash flows seen during FY20.

SHREE RENUKA SUGARS 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	5,613	-15,641	-
Cash Flow from Investing Activities	Rs m	-1,883	-1,437	-
Cash Flow from Financing Activities	Rs m	-6,647	16,405	-
Net Cash Flow	Rs m	342	-319	-

Current Valuations for SHREE RENUKA SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an decline from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9.2, stands at -16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -2.9 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 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	25.5	26.5
TTM Earnings per share	Rs	10.2	-0.5
Diluted earnings per share	Rs	9.2	-0.5
Price to Cash Flow	x	0.5	21.9
TTM P/E ratio	x	-1.8	-16.8
Price / Book Value ratio	x	-1.7	-3.0
Market Cap	Rs m	15,076	20,136
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHREE RENUKA SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY21, from 0.4x 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 1.1x during FY21, from 5.2x 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 17.6% during FY21, from -220.9% 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 22.9% during FY21, from 264.9% 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 3.9% during FY21, from 37.8% 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	0.4	0.6
Debtors’ Days	Days	10	10
Interest coverage	x	5.2	1.1
Debt to equity ratio	x	-2.1	-3.9
Return on assets	%	37.8	3.9
Return on equity	%	-220.9	17.6
Return on capital employed	%	264.9	22.9

To see how SHREE RENUKA SUGARS has performed over the last 5 years, please visit here.

SHREE RENUKA SUGARS Share Price Performance

Over the last one year, SHREE RENUKA SUGARS share price has moved up from Rs 4.8 to Rs 9.2, registering a gain of Rs 4.4 or around 92.5%.

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

(To know more, check out historical annual results for SHREE RENUKA SUGARS and quarterly results for SHREE RENUKA SUGARS)

Read: Latest Annual Report Analysis of SHREE RENUKA SUGARS