UPL 2020-21 Annual Report Analysis

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UPL 2020-21 Annual Report Analysis
Mon, 6 Sep

UPL 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.

UPL Income Statement Analysis

  • Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY21 as against 17.2% in FY20.
  • Depreciation charges increased by 8.0% and finance costs increased by 25.4% YoY, respectively.
  • Other income declined by 2.6% YoY.
  • Net profit for the year grew by 58.8% YoY.
  • Net profit margins during the year grew from 6.0% in FY20 to 8.9% in FY21.

UPL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 357,560 386,940 8.2%
Other income Rs m 2,660 2,590 -2.6%
Total Revenues Rs m 360,220 389,530 8.1%
Gross profit Rs m 61,500 81,130 31.9%
Depreciation Rs m 20,120 21,730 8.0%
Interest Rs m 16,430 20,600 25.4%
Profit before tax Rs m 27,610 41,390 49.9%
Tax Rs m 5,860 6,860 17.1%
Profit after tax Rs m 21,750 34,530 58.8%
Gross profit margin % 17.2 21.0
Effective tax rate % 21.2 16.6
Net profit margin % 6.0 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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UPL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 196 billion as compared to Rs 167 billion in FY20, thereby witnessing an increase of 17.6%.
  • Long-term debt down at Rs 221 billion as compared to Rs 274 billion during FY20, a fall of 19.1%.
  • Current assets rose 3% and stood at Rs 301 billion, while fixed assets fell 1% and stood at Rs 387 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 688 billion as against Rs 684 billion during FY20, thereby witnessing a growth of 0%.

UPL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 192,830 208,860 8.3
 
Current Liabilities Rs m 166,850 196,270 17.6
Long-term Debt Rs m 273,710 221,460 -19.1
Total Liabilities Rs m 684,300 687,650 0.5
 
Current assets Rs m 292,420 300,700 2.8
Fixed Assets Rs m 391,880 386,950 -1.3
Total Assets Rs m 684,300 687,650 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



UPL Cash Flow Statement Analysis

  • UPL 's cash flow from operating activities (CFO) during FY21 stood at Rs 72 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -21 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -67 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -19 billion from the Rs 39 billion net cash flows seen during FY20.

UPL 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 87,390 72,120 -17.5%
Cash Flow from Investing Activities Rs m -26,430 -21,010 -
Cash Flow from Financing Activities Rs m -21,750 -67,130 -
Net Cash Flow Rs m 38,980 -19,270 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for UPL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.2, an improvement from the EPS of Rs 28.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 754.3, stands at 16.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.2 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 468.0 506.4
TTM Earnings per share Rs 28.5 45.2
Diluted earnings per share Rs 28.5 45.2
Price to Cash Flow x 13.8 10.2
TTM P/E ratio x 16.2 16.2
Price / Book Value ratio x 2.5 1.7
Market Cap Rs m 576,320 576,309
Dividends per share (Unadj.) Rs 6.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for UPL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY21, from 1.8x 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 3.0x during FY21, from 2.7x 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 improved and stood at 16.5% during FY21, from 11.3% 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 14.4% during FY21, from 9.4% 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 8.0% during FY21, from 5.6% 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 1.8 1.5
Debtors’ Days Days 12 12
Interest coverage x 2.7 3.0
Debt to equity ratio x 1.4 1.1
Return on assets % 5.6 8.0
Return on equity % 11.3 16.5
Return on capital employed % 9.4 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

UPL Share Price Performance

Over the last one year, UPL share price has moved up from Rs 508.5 to Rs 754.3, registering a gain of Rs 245.9 or around 48.4%.

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

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UPL Announces Quarterly Results (3QFY21); Net Profit Up 13.5% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, UPL has posted a net profit of Rs 10 bn (up 13.5% YoY). Sales on the other hand came in at Rs 91 bn (up 2.6% YoY). Read on for a complete analysis of UPL 's quarterly results.

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Dec 29, 2020 | Updated on Dec 29, 2020

Here's an analysis of the annual report of UPL for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of UPL . Also includes updates on the valuation of UPL .

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For the quarter ended December 2019, UPL has posted a net profit of Rs 8 bn (up 77.5% YoY). Sales on the other hand came in at Rs 89 bn (up 80.7% YoY). Read on for a complete analysis of UPL 's quarterly results.

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