SHIVALIK RASAYAN 2020-21 Annual Report Analysis

Wed, 31 Mar

SHIVALIK RASAYAN 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.

SHIVALIK RASAYAN Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY21 as against 15.5% in FY20.
• Depreciation charges increased by 144.4% and finance costs increased by 8.8% YoY, respectively.
• Other income declined by 64.0% YoY.
• Net profit for the year grew by 11.9% YoY.
• Net profit margins during the year grew from 11.8% in FY20 to 12.5% in FY21.

SHIVALIK RASAYAN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,863	1,976	6.1%
Other income	Rs m	31	11	-64.0%
Total Revenues	Rs m	1,894	1,987	4.9%
Gross profit	Rs m	289	384	32.8%
Depreciation	Rs m	35	86	144.4%
Interest	Rs m	19	20	8.8%
Profit before tax	Rs m	267	289	8.4%
Tax	Rs m	46	43	-8.3%
Profit after tax	Rs m	220	247	11.9%
Gross profit margin	%	15.5	19.4
Effective tax rate	%	17.4	14.7
Net profit margin	%	11.8	12.5

SHIVALIK RASAYAN Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 907 million as compared to Rs 747 million in FY20, thereby witnessing an increase of 21.5%.
• Long-term debt stood at Rs 111 million as compared to Rs 26 million during FY20, a growth of 324.0%.
• Current assets fell 17% and stood at Rs 1 billion, while fixed assets rose 36% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 11%.

SHIVALIK RASAYAN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,763	1,791	1.6
Current Liabilities	Rs m	747	907	21.5
Long-term Debt	Rs m	26	111	324.0
Total Liabilities	Rs m	3,282	3,630	10.6
Current assets	Rs m	1,576	1,307	-17.1
Fixed Assets	Rs m	1,608	2,181	35.6
Total Assets	Rs m	3,282	3,630	10.6

SHIVALIK RASAYAN Cash Flow Statement Analysis

• SHIVALIK RASAYAN's cash flow from operating activities (CFO) during FY21 stood at Rs 588 million, an improvement of 927.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -791 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 161 million, an improvement of 56% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -43 million from the Rs -859 million net cash flows seen during FY20.

SHIVALIK RASAYAN 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	57	588	927.1%
Cash Flow from Investing Activities	Rs m	-1,019	-791	-
Cash Flow from Financing Activities	Rs m	103	161	56.1%
Net Cash Flow	Rs m	-859	-43	-

Current Valuations for SHIVALIK RASAYAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.9, an improvement from the EPS of Rs 16.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 705.5, stands at 41.1 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 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 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	135.2	143.4
TTM Earnings per share	Rs	16.0	17.9
Diluted earnings per share	Rs	15.2	17.0
Price to Cash Flow	x	12.5	22.3
TTM P/E ratio	x	14.6	41.1
Price / Book Value ratio	x	1.9	4.1
Market Cap	Rs m	3,406	7,400
Dividends per share (Unadj.)	Rs	0.3	0.5

Ratio Analysis for SHIVALIK RASAYAN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 15.2x during FY21, from 15.3x 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 13.8% during FY21, from 12.5% 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 16.3% during FY21, from 16.0% 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 7.4% during FY21, from 7.3% 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	1.4
Debtors’ Days	Days	113,985,610	127,174,663
Interest coverage	x	15.3	15.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.3	7.4
Return on equity	%	12.5	13.8
Return on capital employed	%	16.0	16.3

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

SHIVALIK RASAYAN Share Price Performance

Over the last one year, SHIVALIK RASAYAN share price has moved up from Rs 221.0 to Rs 705.5, registering a gain of Rs 484.5 or around 219.2%.

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

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

Read: Latest Annual Report Analysis of SHIVALIK RASAYAN