UTTAM SUGAR 2020-21 Annual Report Analysis

Wed, 31 Mar

UTTAM SUGAR 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.

UTTAM SUGAR Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY21 as against 11.1% in FY20.
• Depreciation charges decreased by 2.4% and finance costs increased by 9.0% YoY, respectively.
• Other income declined by 17.5% YoY.
• Net profit for the year grew by 15.8% YoY.
• Net profit margins during the year grew from 3.1% in FY20 to 3.3% in FY21.

UTTAM SUGAR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,448	18,186	10.6%
Other income	Rs m	104	86	-17.5%
Total Revenues	Rs m	16,553	18,272	10.4%
Gross profit	Rs m	1,822	2,160	18.6%
Depreciation	Rs m	292	285	-2.4%
Interest	Rs m	790	861	9.0%
Profit before tax	Rs m	844	1,100	30.3%
Tax	Rs m	328	502	53.2%
Profit after tax	Rs m	516	598	15.8%
Gross profit margin	%	11.1	11.9
Effective tax rate	%	38.8	45.7
Net profit margin	%	3.1	3.3

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UTTAM SUGAR Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 12 billion in FY20, thereby witnessing an decrease of -1.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 23.4%.
• Current assets fell 2% and stood at Rs 11 billion, while fixed assets rose 10% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 3%.

UTTAM SUGAR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,852	3,380	18.5
Current Liabilities	Rs m	11,653	11,529	-1.1
Long-term Debt	Rs m	2,313	1,772	-23.4
Total Liabilities	Rs m	17,366	17,802	2.5
Current assets	Rs m	11,076	10,906	-1.5
Fixed Assets	Rs m	6,290	6,896	9.6
Total Assets	Rs m	17,366	17,802	2.5

UTTAM SUGAR Cash Flow Statement Analysis

• UTTAM SUGAR's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 1,129.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 129.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -638 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 82 million from the Rs -133 million net cash flows seen during FY20.

UTTAM SUGAR 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	145	1,787	1,129.7%
Cash Flow from Investing Activities	Rs m	-464	-1,066	-
Cash Flow from Financing Activities	Rs m	185	-638	-
Net Cash Flow	Rs m	-133	82	-

Current Valuations for UTTAM SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.7, an improvement from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 90.8, stands at 5.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 3.6 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	431.3	476.8
TTM Earnings per share	Rs	13.5	15.7
Diluted earnings per share	Rs	13.5	15.7
Price to Cash Flow	x	2.4	3.6
TTM P/E ratio	x	3.8	5.8
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	3,505	3,212
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UTTAM SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 1.0x 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 2.3x during FY21, from 2.1x 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 17.7% during FY21, from 18.1% 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 38.1% during FY21, from 31.6% 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 improved and stood at 8.2% during FY21, from 7.5% 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	1.0	0.9
Debtors’ Days	Days	112	97
Interest coverage	x	2.1	2.3
Debt to equity ratio	x	0.8	0.5
Return on assets	%	7.5	8.2
Return on equity	%	18.1	17.7
Return on capital employed	%	31.6	38.1

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

UTTAM SUGAR Share Price Performance

Over the last one year, UTTAM SUGAR share price has moved up from Rs 51.6 to Rs 90.8, registering a gain of Rs 39.3 or around 76.1%.

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

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

Read: Latest Annual Report Analysis of UTTAM SUGAR