RUPA & CO 2020-21 Annual Report Analysis

Wed, 31 Mar

RUPA & CO 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.

RUPA & CO Income Statement Analysis

• Operating income during the year rose 34.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 126.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.6% in FY21 as against 11.7% in FY20.
• Depreciation charges decreased by 25.5% and finance costs decreased by 27.9% YoY, respectively.
• Other income declined by 1.1% YoY.
• Net profit for the year grew by 183.1% YoY.
• Net profit margins during the year grew from 6.4% in FY20 to 13.4% in FY21.

RUPA & CO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,746	13,127	34.7%
Other income	Rs m	74	73	-1.1%
Total Revenues	Rs m	9,820	13,200	34.4%
Gross profit	Rs m	1,137	2,573	126.2%
Depreciation	Rs m	185	138	-25.5%
Interest	Rs m	186	134	-27.9%
Profit before tax	Rs m	840	2,374	182.7%
Tax	Rs m	221	621	181.5%
Profit after tax	Rs m	619	1,753	183.1%
Gross profit margin	%	11.7	19.6
Effective tax rate	%	26.3	26.2
Net profit margin	%	6.4	13.4

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RUPA & CO Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 0.9%.
• Long-term debt stood at Rs 135 million as compared to Rs 109 million during FY20, a growth of 24.2%.
• Current assets rose 19% and stood at Rs 9 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 17%.

RUPA & CO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,780	7,295	26.2
Current Liabilities	Rs m	3,925	3,960	0.9
Long-term Debt	Rs m	109	135	24.2
Total Liabilities	Rs m	9,890	11,549	16.8
Current assets	Rs m	7,744	9,210	18.9
Fixed Assets	Rs m	2,146	2,339	9.0
Total Assets	Rs m	9,890	11,549	16.8

RUPA & CO Cash Flow Statement Analysis

• RUPA & CO's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 133.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 801.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -717 million, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 19 million from the Rs -59 million net cash flows seen during FY20.

RUPA & CO 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	904	2,106	133.0%
Cash Flow from Investing Activities	Rs m	-152	-1,370	-
Cash Flow from Financing Activities	Rs m	-811	-717	-
Net Cash Flow	Rs m	-59	19	-

Current Valuations for RUPA & CO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.0, an improvement from the EPS of Rs 7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 307.7, stands at 14.0 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 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	122.6	165.1
TTM Earnings per share	Rs	7.8	22.0
Diluted earnings per share	Rs	7.8	22.0
Price to Cash Flow	x	11.5	10.0
TTM P/E ratio	x	15.0	14.0
Price / Book Value ratio	x	3.1	2.6
Market Cap	Rs m	18,171	18,973
Dividends per share (Unadj.)	Rs	3.0	5.0

Ratio Analysis for RUPA & CO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY21, from 2.0x 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 improved and stood at 18.7x during FY21, from 5.5x 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 24.0% during FY21, from 10.7% 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 33.8% during FY21, from 17.4% 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 16.3% during FY21, from 8.1% 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	2.0	2.3
Debtors’ Days	Days	941	1,013
Interest coverage	x	5.5	18.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	16.3
Return on equity	%	10.7	24.0
Return on capital employed	%	17.4	33.8

To see how RUPA & CO has performed over the last 5 years, please visit here.

RUPA & CO Share Price Performance

Over the last one year, RUPA & CO share price has moved up from Rs 116.6 to Rs 307.7, registering a gain of Rs 191.2 or around 164.0%.

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

(To know more, check out historical annual results for RUPA & CO and quarterly results for RUPA & CO)

Read: Latest Annual Report Analysis of RUPA & CO