RATNAMANI METALS 2020-21 Annual Report Analysis

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RATNAMANI METALS 2020-21 Annual Report Analysis
Fri, 22 Oct

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 11.6% in FY20 to 11.8% 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 % 11.6 11.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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



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 2,219.9, stands at 37.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.2 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 28.3 31.2
TTM P/E ratio x 37.5 37.5
Price / Book Value ratio x 2.9 3.4
Market Cap Rs m 103,729 103,729
Dividends per share (Unadj.) Rs 12.0 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 1,294.9 to Rs 2,219.9, registering a gain of Rs 925.0 or around 71.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,227.7 (down 3.4%). Over the last one year it has moved up from 8,617.2 to 20,227.7, a gain of 11,611 points (up 134.7%).

Overall, the S&P BSE SENSEX is up 49.7% over the year.

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

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Related Views on News

RATNAMANI METALS Announces Quarterly Results (3QFY21); Net Profit Down 40.5% (Quarterly Result Update)

Feb 3, 2021 | Updated on Feb 3, 2021

For the quarter ended December 2020, RATNAMANI METALS has posted a net profit of Rs 601 m (down 40.5% YoY). Sales on the other hand came in at Rs 4 bn (down 41.7% YoY). Read on for a complete analysis of RATNAMANI METALS's quarterly results.

RATNAMANI METALS Announces Quarterly Results (3QFY20); Net Profit Up 60.9% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, RATNAMANI METALS has posted a net profit of Rs 1 bn (up 60.9% YoY). Sales on the other hand came in at Rs 8 bn (up 3.8% YoY). Read on for a complete analysis of RATNAMANI METALS's quarterly results.

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