ULTRAMARINE PIG 2020-21 Annual Report Analysis

Wed, 31 Mar

ULTRAMARINE PIG 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.

ULTRAMARINE PIG Income Statement Analysis

• Operating income during the year rose 0.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.6% in FY21 as against 25.0% in FY20.
• Depreciation charges increased by 1.9% and finance costs decreased by 4.0% YoY, respectively.
• Other income declined by 16.5% YoY.
• Net profit for the year declined by 10.0% YoY.
• Net profit margins during the year declined from 20.3% in FY20 to 18.1% in FY21.

ULTRAMARINE PIG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,062	3,082	0.7%
Other income	Rs m	115	96	-16.5%
Total Revenues	Rs m	3,177	3,178	0.0%
Gross profit	Rs m	764	758	-0.9%
Depreciation	Rs m	86	88	1.9%
Interest	Rs m	17	17	-4.0%
Profit before tax	Rs m	776	750	-3.4%
Tax	Rs m	156	192	22.7%
Profit after tax	Rs m	620	558	-10.0%
Gross profit margin	%	25.0	24.6
Effective tax rate	%	20.1	25.6
Net profit margin	%	20.3	18.1

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ULTRAMARINE PIG Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 539 million as compared to Rs 440 million in FY20, thereby witnessing an increase of 22.7%.
• Long-term debt stood at Rs 348 million as compared to Rs 203 million during FY20, a growth of 71.6%.
• Current assets rose 33% and stood at Rs 2 billion, while fixed assets rose 58% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 47%.

ULTRAMARINE PIG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,025	4,611	52.4
Current Liabilities	Rs m	440	539	22.7
Long-term Debt	Rs m	203	348	71.6
Total Liabilities	Rs m	3,814	5,606	47.0
Current assets	Rs m	1,645	2,180	32.6
Fixed Assets	Rs m	2,170	3,426	57.9
Total Assets	Rs m	3,814	5,606	47.0

ULTRAMARINE PIG Cash Flow Statement Analysis

• ULTRAMARINE PIG's cash flow from operating activities (CFO) during FY21 stood at Rs 577 million, an improvement of 21.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -202 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 130 million, an improvement of 180% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 505 million from the Rs -75 million net cash flows seen during FY20.

ULTRAMARINE PIG 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	476	577	21.3%
Cash Flow from Investing Activities	Rs m	-387	-202	-
Cash Flow from Financing Activities	Rs m	-163	130	-
Net Cash Flow	Rs m	-75	505	-

Current Valuations for ULTRAMARINE PIG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.1, an decline from the EPS of Rs 21.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 292.3, stands at 15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	104.9	105.5
TTM Earnings per share	Rs	21.2	19.1
Diluted earnings per share	Rs	21.2	19.1
Price to Cash Flow	x	5.8	11.7
TTM P/E ratio	x	7.7	15.3
Price / Book Value ratio	x	1.8	1.6
Market Cap	Rs m	5,444	7,533
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for ULTRAMARINE PIG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.0x during FY21, from 3.7x 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 46.0x during FY21, from 45.7x 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 12.1% during FY21, from 20.5% 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 declined and down at 15.5% during FY21, from 24.6% 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 10.2% during FY21, from 16.7% 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	3.7	4.0
Debtors’ Days	Days	468	519
Interest coverage	x	45.7	46.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.7	10.2
Return on equity	%	20.5	12.1
Return on capital employed	%	24.6	15.5

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

ULTRAMARINE PIG Share Price Performance

Over the last one year, ULTRAMARINE PIG share price has moved up from Rs 141.5 to Rs 292.3, registering a gain of Rs 150.9 or around 106.6%.

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

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

Read: Latest Annual Report Analysis of ULTRAMARINE PIG