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USHA MARTIN 2020-21 Annual Report Analysis
Wed, 31 Mar

USHA MARTIN 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.

USHA MARTIN Income Statement Analysis

  • Operating income during the year fell 5.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 51.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY21 as against 7.2% in FY20.
  • Depreciation charges decreased by 2.1% and finance costs decreased by 38.4% YoY, respectively.
  • Other income declined by 89.6% YoY.
  • Net profit for the year declined by 65.1% YoY.
  • Net profit margins during the year declined from 19.0% in FY20 to 7.0% in FY21.

USHA MARTIN Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 22,191 20,973 -5.5%
Other income Rs m 6,324 655 -89.6%
Total Revenues Rs m 28,514 21,628 -24.1%
Gross profit Rs m 1,598 2,426 51.8%
Depreciation Rs m 693 679 -2.1%
Interest Rs m 924 569 -38.4%
Profit before tax Rs m 6,304 1,834 -70.9%
Tax Rs m 2,097 364 -82.6%
Profit after tax Rs m 4,207 1,469 -65.1%
Gross profit margin % 7.2 11.6
Effective tax rate % 33.3 19.9
Net profit margin % 19.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

USHA MARTIN Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 8 billion as compared to Rs 9 billion in FY20, thereby witnessing an decrease of -5.2%.
  • Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY20, a fall of 22.2%.
  • Current assets rose 6% and stood at Rs 14 billion, while fixed assets fell 1% and stood at Rs 12 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 25 billion during FY20, thereby witnessing a growth of 3%.

USHA MARTIN Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 12,275 14,035 14.3
 
Current Liabilities Rs m 8,627 8,178 -5.2
Long-term Debt Rs m 3,052 2,374 -22.2
Total Liabilities Rs m 25,162 25,835 2.7
 
Current assets Rs m 13,186 14,005 6.2
Fixed Assets Rs m 11,976 11,830 -1.2
Total Assets Rs m 25,162 25,835 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



USHA MARTIN Cash Flow Statement Analysis

  • USHA MARTIN's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 0.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -345 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 94% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 21 million from the Rs 497 million net cash flows seen during FY20.

USHA MARTIN 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 2,124 2,137 0.6%
Cash Flow from Investing Activities Rs m 29,432 -345 -
Cash Flow from Financing Activities Rs m -31,047 -1,775 -
Net Cash Flow Rs m 497 21 -95.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for USHA MARTIN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an decline from the EPS of Rs 13.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 33.1, stands at 6.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.7 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 72.8 68.8
TTM Earnings per share Rs 13.8 4.8
Diluted earnings per share Rs 13.8 4.8
Price to Cash Flow x 1.0 3.7
TTM P/E ratio x -7.8 6.7
Price / Book Value ratio x 0.7 0.6
Market Cap Rs m 8,198 7,847
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for USHA MARTIN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.5x 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 4.2x during FY21, from 7.8x 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 10.5% during FY21, from 34.3% 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 declined and down at 14.6% during FY21, from 47.2% 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 7.9% during FY21, from 20.4% 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 1.5 1.7
Debtors’ Days Days 491 570
Interest coverage x 7.8 4.2
Debt to equity ratio x 0.2 0.2
Return on assets % 20.4 7.9
Return on equity % 34.3 10.5
Return on capital employed % 47.2 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

USHA MARTIN Share Price Performance

Over the last one year, USHA MARTIN share price has moved up from Rs 16.0 to Rs 33.1, registering a gain of Rs 17.1 or around 106.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Annual Report FAQs

What is the current share price of USHA MARTIN?

USHA MARTIN currently trades at Rs 318.4 per share. You can check out the latest share price performance of USHA MARTIN here...

What was the revenue of USHA MARTIN in FY21? How does it compare to earlier years?

The revenues of USHA MARTIN stood at Rs 21,628 m in FY21, which was down -24.1% compared to Rs 28,514 m reported in FY20.

USHA MARTIN's revenue has fallen from Rs 36,288 m in FY17 to Rs 21,628 m in FY21.

Over the past 5 years, the revenue of USHA MARTIN has grown at a CAGR of -12.1%.

What was the net profit of USHA MARTIN in FY21? How does it compare to earlier years?

The net profit of USHA MARTIN stood at Rs 1,469 m in FY21, which was down -65.1% compared to Rs 4,207 m reported in FY20.

This compares to a net profit of Rs 465 m in FY19 and a net loss of Rs -2,688 m in FY18.

Over the past 5 years, USHA MARTIN net profit has grown at a CAGR of NaN%.

What does the cash flow statement of USHA MARTIN reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of USHA MARTIN reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,137 m as compared to Rs 2,124 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -345 m as compared to Rs 29,432 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -1,775 m as compared to Rs -31,047 m in FY20.

Here's the cash flow statement of USHA MARTIN for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations6,8589,1389,7442,1242,137
From Investments-312-337-4329,432-345
From Financial Activity-6,626-8,716-9,734-31,047-1,775
Net Cashflow-5368-2149721

What does the Key Ratio analysis of USHA MARTIN reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of USHA MARTIN reveals:

  • Operating profit margins witnessed a fall and down at 11.6% in FY21 as against 7.2% in FY20.
  • Net profit margins declined from 19.0% in FY20 to 7.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of USHA MARTIN for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.19.89.97.211.6
Net Profit Margin (%)-10.2-5.10.719.07.0
Debt to Equity Ratio (x)3.03.82.90.20.2

Read: Latest Annual Report Analysis of USHA MARTIN

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