RUCHI SOYA INDUSTRIES 2020-21 Annual Report Analysis

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RUCHI SOYA INDUSTRIES 2020-21 Annual Report Analysis
Mon, 22 Nov

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 40.6% 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 % 40.6 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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



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 992.0, stands at 33.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 36.1 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 259.3 23.0
Price to Cash Flow x 3.8 36.1
TTM P/E ratio x 33.4 33.4
Price / Book Value ratio x 0.8 6.2
Market Cap Rs m 293,399 293,474
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 650.3 to Rs 992.0, registering a gain of Rs 341.8 or around 52.6%.

Overall, the S&P BSE SENSEX is up 35.3% 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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