RUSHIL DECOR 2020-21 Annual Report Analysis

Wed, 31 Mar

RUSHIL DECOR 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.

RUSHIL DECOR Income Statement Analysis

• Operating income during the year fell 0.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.9% in FY21 as against 11.0% in FY20.
• Depreciation charges increased by 12.0% and finance costs increased by 3.1% YoY, respectively.
• Other income grew by 21.9% YoY.
• Net profit for the year declined by 40.5% YoY.
• Net profit margins during the year declined from 6.9% in FY20 to 4.1% in FY21.

RUSHIL DECOR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,356	3,354	0.0%
Other income	Rs m	35	43	21.9%
Total Revenues	Rs m	3,391	3,398	0.2%
Gross profit	Rs m	369	365	-1.1%
Depreciation	Rs m	87	97	12.0%
Interest	Rs m	120	124	3.1%
Profit before tax	Rs m	197	187	-5.3%
Tax	Rs m	-33	49	-248.4%
Profit after tax	Rs m	231	137	-40.5%
Gross profit margin	%	11.0	10.9
Effective tax rate	%	-16.9	26.5
Net profit margin	%	6.9	4.1

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RUSHIL DECOR Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 13.9%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY20, a fall of 12.9%.
• Current assets fell 0% and stood at Rs 2 billion, while fixed assets rose 4% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 3%.

RUSHIL DECOR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,284	2,641	15.7
Current Liabilities	Rs m	1,763	2,008	13.9
Long-term Debt	Rs m	3,388	2,952	-12.9
Total Liabilities	Rs m	7,858	8,084	2.9
Current assets	Rs m	1,931	1,925	-0.3
Fixed Assets	Rs m	5,927	6,159	3.9
Total Assets	Rs m	7,858	8,084	2.9

RUSHIL DECOR Cash Flow Statement Analysis

• RUSHIL DECOR's cash flow from operating activities (CFO) during FY21 stood at Rs 771 million, an improvement of 63.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -386 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -376 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 9 million from the Rs 0 million net cash flows seen during FY20.

RUSHIL DECOR 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	471	771	63.6%
Cash Flow from Investing Activities	Rs m	-1,982	-386	-
Cash Flow from Financing Activities	Rs m	1,510	-376	-
Net Cash Flow	Rs m	0	9	-22,700.0%

Current Valuations for RUSHIL DECOR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an decline from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 209.1, stands at 30.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	224.8	168.5
TTM Earnings per share	Rs	15.4	6.9
Diluted earnings per share	Rs	11.6	6.9
Price to Cash Flow	x	4.4	15.0
TTM P/E ratio	x	6.1	30.3
Price / Book Value ratio	x	2.5	1.3
Market Cap	Rs m	5,755	3,517
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for RUSHIL DECOR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.1x 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 2.5x during FY21, from 2.6x 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 5.2% during FY21, from 10.1% 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 5.6% during FY21, from 5.6% 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 3.2% during FY21, from 4.5% 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	1.1	1.0
Debtors’ Days	Days	66,517,630	62,606,055
Interest coverage	x	2.6	2.5
Debt to equity ratio	x	1.5	1.1
Return on assets	%	4.5	3.2
Return on equity	%	10.1	5.2
Return on capital employed	%	5.6	5.6

To see how RUSHIL DECOR has performed over the last 5 years, please visit here.

RUSHIL DECOR Share Price Performance

Over the last one year, RUSHIL DECOR share price has moved up from Rs 70.4 to Rs 209.1, registering a gain of Rs 138.8 or around 197.2%.

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

(To know more, check out historical annual results for RUSHIL DECOR and quarterly results for RUSHIL DECOR)

Read: Latest Annual Report Analysis of RUSHIL DECOR