S H KELKAR & CO. 2020-21 Annual Report Analysis

Wed, 31 Mar

S H KELKAR & CO. 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.

S H KELKAR & CO. Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 105.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY21 as against 11.0% in FY20.
• Depreciation charges increased by 19.4% and finance costs decreased by 21.3% YoY, respectively.
• Other income grew by 199.6% YoY.
• Net profit for the year grew by 314.2% YoY.
• Net profit margins during the year grew from 3.1% in FY20 to 10.9% in FY21.

S H KELKAR & CO. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,142	13,220	18.6%
Other income	Rs m	78	235	199.6%
Total Revenues	Rs m	11,221	13,454	19.9%
Gross profit	Rs m	1,227	2,516	105.0%
Depreciation	Rs m	515	615	19.4%
Interest	Rs m	258	203	-21.3%
Profit before tax	Rs m	533	1,933	262.5%
Tax	Rs m	186	495	166.0%
Profit after tax	Rs m	347	1,437	314.2%
Gross profit margin	%	11.0	19.0
Effective tax rate	%	34.9	25.6
Net profit margin	%	3.1	10.9

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S H KELKAR & CO. Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -0.3%.
• Long-term debt stood at Rs 3 billion as compared to Rs 544 million during FY20, a growth of 509.5%.
• Current assets rose 29% and stood at Rs 10 billion, while fixed assets rose 28% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 29%.

S H KELKAR & CO. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,240	9,516	15.5
Current Liabilities	Rs m	5,755	5,735	-0.3
Long-term Debt	Rs m	544	3,316	509.5
Total Liabilities	Rs m	14,574	18,740	28.6
Current assets	Rs m	8,083	10,436	29.1
Fixed Assets	Rs m	6,491	8,304	27.9
Total Assets	Rs m	14,574	18,740	28.6

S H KELKAR & CO. Cash Flow Statement Analysis

• S H KELKAR & CO.'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 -1 billion, an improvement of 268.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 876 million, an improvement of 145% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs -326 million net cash flows seen during FY20.

S H KELKAR & CO. 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	2,052	1,952	-4.9%
Cash Flow from Investing Activities	Rs m	-404	-1,489	-
Cash Flow from Financing Activities	Rs m	-1,962	876	-
Net Cash Flow	Rs m	-326	1,352	-

Current Valuations for S H KELKAR & CO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 111.8, stands at 10.8 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 6.5 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	78.8	93.5
TTM Earnings per share	Rs	2.5	10.2
Diluted earnings per share	Rs	2.5	10.4
Price to Cash Flow	x	12.5	6.5
TTM P/E ratio	x	30.9	10.8
Price / Book Value ratio	x	2.0	1.4
Market Cap	Rs m	16,100	13,348
Dividends per share (Unadj.)	Rs	1.0	1.8

Ratio Analysis for S H KELKAR & CO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.4x 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 10.5x during FY21, from 3.1x 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 15.1% during FY21, from 4.2% 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 16.6% during FY21, from 9.0% 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 8.8% during FY21, from 4.1% 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	1.4	1.8
Debtors’ Days	Days	10	10
Interest coverage	x	3.1	10.5
Debt to equity ratio	x	0.1	0.3
Return on assets	%	4.1	8.8
Return on equity	%	4.2	15.1
Return on capital employed	%	9.0	16.6

To see how S H KELKAR & CO. has performed over the last 5 years, please visit here.

S H KELKAR & CO. Share Price Performance

Over the last one year, S H KELKAR & CO. share price has moved up from Rs 77.6 to Rs 111.8, registering a gain of Rs 34.2 or around 44.0%.

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

(To know more, check out historical annual results for S H KELKAR & CO. and quarterly results for S H KELKAR & CO.)

Read: Latest Annual Report Analysis of S H KELKAR & CO.