RATNAMANI METALS 2020-21 Annual Report Analysis

Wed, 31 Mar

RATNAMANI METALS 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.

RATNAMANI METALS Income Statement Analysis

• Operating income during the year fell 11.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY21 as against 16.5% in FY20.
• Depreciation charges decreased by 2.8% and finance costs increased by 9.2% YoY, respectively.
• Other income declined by 26.8% YoY.
• Net profit for the year declined by 10.3% YoY.
• Net profit margins during the year grew from 11.9% in FY20 to 12.0% in FY21.

RATNAMANI METALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	25,857	22,981	-11.1%
Other income	Rs m	593	434	-26.8%
Total Revenues	Rs m	26,450	23,415	-11.5%
Gross profit	Rs m	4,265	3,998	-6.3%
Depreciation	Rs m	585	569	-2.8%
Interest	Rs m	210	229	9.2%
Profit before tax	Rs m	4,064	3,635	-10.6%
Tax	Rs m	988	875	-11.5%
Profit after tax	Rs m	3,075	2,760	-10.3%
Gross profit margin	%	16.5	17.4
Effective tax rate	%	24.3	24.1
Net profit margin	%	11.9	12.0

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RATNAMANI METALS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -31.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 17.1%.
• Current assets rose 1% and stood at Rs 17 billion, while fixed assets rose 6% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 25 billion during FY20, thereby witnessing a growth of 3%.

RATNAMANI METALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,092	19,876	16.3
Current Liabilities	Rs m	6,183	4,268	-31.0
Long-term Debt	Rs m	1,756	1,456	-17.1
Total Liabilities	Rs m	25,446	26,166	2.8
Current assets	Rs m	16,410	16,545	0.8
Fixed Assets	Rs m	9,036	9,620	6.5
Total Assets	Rs m	25,446	26,166	2.8

RATNAMANI METALS Cash Flow Statement Analysis

• RATNAMANI METALS's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 153.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 31.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -788 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -31 million from the Rs -958 million net cash flows seen during FY20.

RATNAMANI METALS 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	2,152	5,455	153.5%
Cash Flow from Investing Activities	Rs m	-3,568	-4,700	-
Cash Flow from Financing Activities	Rs m	468	-788	-
Net Cash Flow	Rs m	-958	-31	-

Current Valuations for RATNAMANI METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.1, an decline from the EPS of Rs 65.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,899.9, stands at 32.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 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	553.3	491.8
TTM Earnings per share	Rs	65.8	59.1
Diluted earnings per share	Rs	65.8	59.1
Price to Cash Flow	x	11.5	20.3
TTM P/E ratio	x	13.7	32.2
Price / Book Value ratio	x	2.9	3.4
Market Cap	Rs m	49,042	67,513
Dividends per share (Unadj.)	Rs	12.0	14.0

Ratio Analysis for RATNAMANI METALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY21, from 2.7x 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 deteriorated and stood at 16.9x during FY21, from 20.4x 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 13.9% during FY21, from 18.0% 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 declined and down at 18.1% during FY21, from 22.7% 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 declined and down at 11.4% during FY21, from 12.9% 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	2.7	3.9
Debtors’ Days	Days	523	639
Interest coverage	x	20.4	16.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.9	11.4
Return on equity	%	18.0	13.9
Return on capital employed	%	22.7	18.1

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

RATNAMANI METALS Share Price Performance

Over the last one year, RATNAMANI METALS share price has moved up from Rs 903.5 to Rs 1,899.9, registering a gain of Rs 996.4 or around 110.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of RATNAMANI METALS