VIDHI SPECIALTY FOOD INGREDIENTS 2020-21 Annual Report Analysis

Wed, 31 Mar

VIDHI SPECIALTY FOOD INGREDIENTS 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.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.7% in FY21 as against 22.5% in FY20.
• Depreciation charges decreased by 1.8% and finance costs decreased by 44.7% YoY, respectively.
• Other income grew by 117.3% YoY.
• Net profit for the year grew by 7.8% YoY.
• Net profit margins during the year declined from 15.1% in FY20 to 13.7% in FY21.

VIDHI SPECIALTY FOOD INGREDIENTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,246	2,664	18.6%
Other income	Rs m	7	16	117.3%
Total Revenues	Rs m	2,253	2,680	18.9%
Gross profit	Rs m	504	526	4.2%
Depreciation	Rs m	30	29	-1.8%
Interest	Rs m	30	17	-44.7%
Profit before tax	Rs m	452	496	9.7%
Tax	Rs m	113	130	15.5%
Profit after tax	Rs m	339	366	7.8%
Gross profit margin	%	22.5	19.7
Effective tax rate	%	24.9	26.2
Net profit margin	%	15.1	13.7

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VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 718 million as compared to Rs 647 million in FY20, thereby witnessing an increase of 10.9%.
• Long-term debt stood at Rs 19 million as compared to Rs 13 million during FY20, a growth of 45.1%.
• Current assets rose 26% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 464 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 20%.

VIDHI SPECIALTY FOOD INGREDIENTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,287	1,613	25.3
Current Liabilities	Rs m	647	718	10.9
Long-term Debt	Rs m	13	19	45.1
Total Liabilities	Rs m	1,974	2,374	20.3
Current assets	Rs m	1,513	1,910	26.2
Fixed Assets	Rs m	461	464	0.8
Total Assets	Rs m	1,974	2,374	20.3

VIDHI SPECIALTY FOOD INGREDIENTS Cash Flow Statement Analysis

• VIDHI SPECIALTY FOOD INGREDIENTS's cash flow from operating activities (CFO) during FY21 stood at Rs 112 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -79 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 5 million from the Rs -84 million net cash flows seen during FY20.

VIDHI SPECIALTY FOOD INGREDIENTS 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	277	112	-59.7%
Cash Flow from Investing Activities	Rs m	-121	-28	-
Cash Flow from Financing Activities	Rs m	-241	-79	-
Net Cash Flow	Rs m	-84	5	-

Current Valuations for VIDHI SPECIALTY FOOD INGREDIENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 212.9, stands at 29.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	45.0	53.3
TTM Earnings per share	Rs	6.8	7.3
Diluted earnings per share	Rs	6.8	7.3
Price to Cash Flow	x	6.1	16.5
TTM P/E ratio	x	6.7	29.1
Price / Book Value ratio	x	2.4	4.0
Market Cap	Rs m	3,088	6,530
Dividends per share (Unadj.)	Rs	1.0	0.8

Ratio Analysis for VIDHI SPECIALTY FOOD INGREDIENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY21, from 2.3x 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 30.8x during FY21, from 16.0x 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 22.7% during FY21, from 26.4% 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 31.4% during FY21, from 37.1% 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 16.1% during FY21, from 18.7% 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	2.3	2.7
Debtors’ Days	Days	1,241	1,296
Interest coverage	x	16.0	30.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.7	16.1
Return on equity	%	26.4	22.7
Return on capital employed	%	37.1	31.4

To see how VIDHI SPECIALTY FOOD INGREDIENTS has performed over the last 5 years, please visit here.

VIDHI SPECIALTY FOOD INGREDIENTS Share Price Performance

Over the last one year, VIDHI SPECIALTY FOOD INGREDIENTS share price has moved up from Rs 45.3 to Rs 212.9, registering a gain of Rs 167.6 or around 370.4%.

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

(To know more, check out historical annual results for VIDHI SPECIALTY FOOD INGREDIENTS and quarterly results for VIDHI SPECIALTY FOOD INGREDIENTS)

Read: Latest Annual Report Analysis of VIDHI SPECIALTY FOOD INGREDIENTS