USHA MARTIN 2020-21 Annual Report Analysis

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USHA MARTIN 2020-21 Annual Report Analysis
Tue, 2 Nov

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 14.8% in FY20 to 6.8% 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 % 14.8 6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

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 91.8, stands at 14.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.0 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 5.7 13.0
TTM P/E ratio x 14.0 14.0
Price / Book Value ratio x 0.7 0.6
Market Cap Rs m 27,960 27,960
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 20.4 to Rs 91.8, registering a gain of Rs 71.4 or around 350.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,273.6 (down 1.9%). Over the last one year it has moved up from 8,190.1 to 20,273.6, a gain of 12,084 points (up 147.5%).

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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