RUCHI SOYA INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

RUCHI SOYA INDUSTRIES 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.

RUCHI SOYA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 24.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY21 as against 16.1% in FY20.
• Depreciation charges decreased by 1.9% and finance costs increased by 230.7% YoY, respectively.
• Other income declined by 98.9% YoY.
• Net profit for the year declined by 91.1% YoY.
• Net profit margins during the year declined from 58.5% in FY20 to 4.2% in FY21.

RUCHI SOYA INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	131,178	163,186	24.4%
Other income	Rs m	57,913	643	-98.9%
Total Revenues	Rs m	189,091	163,830	-13.4%
Gross profit	Rs m	21,152	9,559	-54.8%
Depreciation	Rs m	1,358	1,333	-1.9%
Interest	Rs m	1,127	3,726	230.7%
Profit before tax	Rs m	76,580	5,144	-93.3%
Tax	Rs m	-140	-1,664	1,088.4%
Profit after tax	Rs m	76,720	6,808	-91.1%
Gross profit margin	%	16.1	5.9
Effective tax rate	%	-0.2	-32.3
Net profit margin	%	58.5	4.2

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RUCHI SOYA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 17 billion as compared to Rs 12 billion in FY20, thereby witnessing an increase of 42.2%.
• Long-term debt down at Rs 29 billion as compared to Rs 30 billion during FY20, a fall of 2.5%.
• Current assets rose 41% and stood at Rs 37 billion, while fixed assets fell 2% and stood at Rs 52 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 88 billion as against Rs 79 billion during FY20, thereby witnessing a growth of 12%.

RUCHI SOYA INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	33,709	40,624	20.5
Current Liabilities	Rs m	12,179	17,312	42.2
Long-term Debt	Rs m	29,538	28,798	-2.5
Total Liabilities	Rs m	78,676	88,424	12.4
Current assets	Rs m	26,087	36,881	41.4
Fixed Assets	Rs m	52,589	51,543	-2.0
Total Assets	Rs m	78,676	88,424	12.4

RUCHI SOYA INDUSTRIES Cash Flow Statement Analysis

• RUCHI SOYA INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -440 million, an improvement of 70.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs -42 million net cash flows seen during FY20.

RUCHI SOYA INDUSTRIES 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	-609	2,473	-
Cash Flow from Investing Activities	Rs m	-258	-440	-
Cash Flow from Financing Activities	Rs m	824	-3,108	-
Net Cash Flow	Rs m	-42	-1,075	-

Current Valuations for RUCHI SOYA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.0, an decline from the EPS of Rs 259.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 641.4, stands at 34.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.1 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	443.5	551.8
TTM Earnings per share	Rs	259.4	23.0
Diluted earnings per share	Rs	211.9	18.8
Price to Cash Flow	x	0.8	31.1
TTM P/E ratio	x	0.8	34.1
Price / Book Value ratio	x	0.8	6.2
Market Cap	Rs m	25,729	253,500
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RUCHI SOYA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY21, from 2.1x 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 2.4x during FY21, from 69.0x 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 16.8% during FY21, from 227.6% 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 12.8% during FY21, from 122.9% 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 11.9% during FY21, from 98.9% 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	2.1	2.1
Debtors’ Days	Days	76	98
Interest coverage	x	69.0	2.4
Debt to equity ratio	x	0.9	0.7
Return on assets	%	98.9	11.9
Return on equity	%	227.6	16.8
Return on capital employed	%	122.9	12.8

To see how RUCHI SOYA INDUSTRIES has performed over the last 5 years, please visit here.

RUCHI SOYA INDUSTRIES Share Price Performance

Over the last one year, RUCHI SOYA INDUSTRIES share price has moved up from Rs 170.7 to Rs 641.4, registering a gain of Rs 470.7 or around 275.7%.

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

(To know more, check out historical annual results for RUCHI SOYA INDUSTRIES and quarterly results for RUCHI SOYA INDUSTRIES)

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