SHARDA CROPCHEM 2020-21 Annual Report Analysis

Wed, 31 Mar

SHARDA CROPCHEM 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.

SHARDA CROPCHEM Income Statement Analysis

• Operating income during the year rose 19.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY21 as against 14.7% in FY20.
• Depreciation charges increased by 24.3% and finance costs increased by 1.3% YoY, respectively.
• Other income grew by 6.5% YoY.
• Net profit for the year grew by 39.2% YoY.
• Net profit margins during the year grew from 8.2% in FY20 to 9.6% in FY21.

SHARDA CROPCHEM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,030	23,956	19.6%
Other income	Rs m	431	459	6.5%
Total Revenues	Rs m	20,461	24,415	19.3%
Gross profit	Rs m	2,949	4,502	52.7%
Depreciation	Rs m	1,371	1,704	24.3%
Interest	Rs m	160	162	1.3%
Profit before tax	Rs m	1,849	3,095	67.4%
Tax	Rs m	202	802	297.6%
Profit after tax	Rs m	1,647	2,292	39.2%
Gross profit margin	%	14.7	18.8
Effective tax rate	%	10.9	25.9
Net profit margin	%	8.2	9.6

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SHARDA CROPCHEM Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 11 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 33.1%.
• Current assets rose 25% and stood at Rs 21 billion, while fixed assets rose 15% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 33 billion as against Rs 27 billion during FY20, thereby witnessing a growth of 21%.

SHARDA CROPCHEM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,028	16,143	15.1
Current Liabilities	Rs m	8,564	11,399	33.1
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	26,949	32,611	21.0
Current assets	Rs m	16,812	20,999	24.9
Fixed Assets	Rs m	10,137	11,612	14.6
Total Assets	Rs m	26,949	32,611	21.0

SHARDA CROPCHEM Cash Flow Statement Analysis

• SHARDA CROPCHEM's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 68.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 315.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 434 million, an improvement of 173% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 78 million from the Rs 271 million net cash flows seen during FY20.

SHARDA CROPCHEM 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	1,463	2,464	68.4%
Cash Flow from Investing Activities	Rs m	-678	-2,816	-
Cash Flow from Financing Activities	Rs m	-597	434	-
Net Cash Flow	Rs m	271	78	-71.3%

Current Valuations for SHARDA CROPCHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.4, an improvement from the EPS of Rs 18.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 287.2, stands at 11.3 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	222.0	265.5
TTM Earnings per share	Rs	18.3	25.4
Diluted earnings per share	Rs	18.3	25.4
Price to Cash Flow	x	3.2	5.4
TTM P/E ratio	x	5.9	11.3
Price / Book Value ratio	x	1.7	1.3
Market Cap	Rs m	23,412	21,563
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for SHARDA CROPCHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x 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 20.1x during FY21, from 12.5x 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 14.2% during FY21, from 11.7% 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 20.2% during FY21, from 14.3% 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 7.5% during FY21, from 6.7% 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	2.0	1.8
Debtors’ Days	Days	1,802	1,771
Interest coverage	x	12.5	20.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	7.5
Return on equity	%	11.7	14.2
Return on capital employed	%	14.3	20.2

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

SHARDA CROPCHEM Share Price Performance

Over the last one year, SHARDA CROPCHEM share price has moved up from Rs 107.5 to Rs 287.2, registering a gain of Rs 179.7 or around 167.2%.

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

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

Read: Latest Annual Report Analysis of SHARDA CROPCHEM