RAYMOND 2020-21 Annual Report Analysis

Wed, 31 Mar

RAYMOND 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.

RAYMOND Income Statement Analysis

• Operating income during the year fell 46.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 112.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.9% in FY21 as against 8.5% in FY20.
• Depreciation charges decreased by 7.5% and finance costs decreased by 8.8% YoY, respectively.
• Other income grew by 109.9% YoY.
• Net profit for the year declined by 686.6% YoY.
• Net profit margins during the year declined from 0.8% in FY20 to 8.5% in FY21.

RAYMOND Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	64,824	34,465	-46.8%
Other income	Rs m	959	2,014	109.9%
Total Revenues	Rs m	65,783	36,478	-44.5%
Gross profit	Rs m	5,539	-662	-112.0%
Depreciation	Rs m	3,398	3,142	-7.5%
Interest	Rs m	3,027	2,760	-8.8%
Profit before tax	Rs m	73	-4,551	-6,326.2%
Tax	Rs m	-428	-1,609	275.6%
Profit after tax	Rs m	502	-2,942	-686.6%
Gross profit margin	%	8.5	-1.9
Effective tax rate	%	-586.2	35.4
Net profit margin	%	0.8	-8.5

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RAYMOND Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 30 billion as compared to Rs 43 billion in FY20, thereby witnessing an decrease of -30.5%.
• Long-term debt stood at Rs 12 billion as compared to Rs 4 billion during FY20, a growth of 203.8%.
• Current assets fell 15% and stood at Rs 37 billion, while fixed assets fell 15% and stood at Rs 27 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 64 billion as against Rs 76 billion during FY20, thereby witnessing a fall of 15%.

RAYMOND Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	23,753	20,963	-11.7
Current Liabilities	Rs m	42,748	29,691	-30.5
Long-term Debt	Rs m	3,869	11,755	203.8
Total Liabilities	Rs m	75,669	64,093	-15.3
Current assets	Rs m	44,068	37,363	-15.2
Fixed Assets	Rs m	31,601	26,729	-15.4
Total Assets	Rs m	75,669	64,093	-15.3

RAYMOND Cash Flow Statement Analysis

• RAYMOND's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 79.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 644 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 998 million from the Rs 1 billion net cash flows seen during FY20.

RAYMOND 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	3,905	7,018	79.7%
Cash Flow from Investing Activities	Rs m	-1,369	644	-
Cash Flow from Financing Activities	Rs m	-1,299	-6,683	-
Net Cash Flow	Rs m	1,126	998	-11.3%

Current Valuations for RAYMOND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -44.2, an decline from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 361.7, stands at -8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 103.3 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	1,001.6	517.7
TTM Earnings per share	Rs	7.7	-44.2
Diluted earnings per share	Rs	7.5	-44.2
Price to Cash Flow	x	3.8	103.3
TTM P/E ratio	x	29.6	-8.2
Price / Book Value ratio	x	1.5	1.0
Market Cap	Rs m	34,893	20,684
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAYMOND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.0x 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 deteriorated and stood at -0.6x during FY21, from 1.0x 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 -14.0% during FY21, from 2.1% 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 -5.5% during FY21, from 11.2% 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 -0.3% during FY21, from 4.7% 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	1.0	1.3
Debtors’ Days	Days	653	1,015
Interest coverage	x	1.0	-0.6
Debt to equity ratio	x	0.2	0.6
Return on assets	%	4.7	-0.3
Return on equity	%	2.1	-14.0
Return on capital employed	%	11.2	-5.5

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

RAYMOND Share Price Performance

Over the last one year, RAYMOND share price has moved up from Rs 223.0 to Rs 361.7, registering a gain of Rs 138.7 or around 62.2%.

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

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

Read: Latest Annual Report Analysis of RAYMOND