VISHNU CHEM 2020-21 Annual Report Analysis

Wed, 31 Mar

VISHNU CHEM 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.

VISHNU CHEM Income Statement Analysis

• Operating income during the year rose 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY21 as against 12.2% in FY20.
• Depreciation charges increased by 0.5% and finance costs decreased by 30.4% YoY, respectively.
• Other income declined by 61.5% YoY.
• Net profit for the year grew by 55.2% YoY.
• Net profit margins during the year grew from 3.3% in FY20 to 5.1% in FY21.

VISHNU CHEM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,735	6,787	0.8%
Other income	Rs m	73	28	-61.5%
Total Revenues	Rs m	6,808	6,815	0.1%
Gross profit	Rs m	824	788	-4.4%
Depreciation	Rs m	202	203	0.5%
Interest	Rs m	392	273	-30.4%
Profit before tax	Rs m	303	340	12.2%
Tax	Rs m	81	-5	-106.1%
Profit after tax	Rs m	222	345	55.2%
Gross profit margin	%	12.2	11.6
Effective tax rate	%	26.7	-1.4
Net profit margin	%	3.3	5.1

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VISHNU CHEM Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 0.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 0.4%.
• Current assets rose 1% and stood at Rs 3 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 5%.

VISHNU CHEM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,600	1,961	22.6
Current Liabilities	Rs m	3,276	3,277	0.0
Long-term Debt	Rs m	1,742	1,749	0.4
Total Liabilities	Rs m	7,353	7,729	5.1
Current assets	Rs m	3,454	3,484	0.9
Fixed Assets	Rs m	3,900	4,245	8.9
Total Assets	Rs m	7,353	7,729	5.1

VISHNU CHEM Cash Flow Statement Analysis

• VISHNU CHEM's cash flow from operating activities (CFO) during FY21 stood at Rs 674 million, an improvement of 36.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -518 million, an improvement of 135.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -191 million, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -36 million from the Rs 36 million net cash flows seen during FY20.

VISHNU CHEM 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	492	674	36.9%
Cash Flow from Investing Activities	Rs m	-220	-518	-
Cash Flow from Financing Activities	Rs m	-236	-191	-
Net Cash Flow	Rs m	36	-36	-

Current Valuations for VISHNU CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.9, an improvement from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 285.1, stands at 9.9 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 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	563.6	567.9
TTM Earnings per share	Rs	18.6	28.9
Diluted earnings per share	Rs	18.6	28.9
Price to Cash Flow	x	1.8	3.8
TTM P/E ratio	x	3.5	9.9
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	1,331	2,109
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for VISHNU CHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x 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 2.2x during FY21, from 1.8x 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 improved and stood at 17.6% during FY21, from 13.9% 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 16.5% during FY21, from 20.8% 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 8.0% during FY21, from 8.4% 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	1.1	1.1
Debtors’ Days	Days	493	622
Interest coverage	x	1.8	2.2
Debt to equity ratio	x	1.1	0.9
Return on assets	%	8.4	8.0
Return on equity	%	13.9	17.6
Return on capital employed	%	20.8	16.5

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

VISHNU CHEM Share Price Performance

Over the last one year, VISHNU CHEM share price has moved up from Rs 65.6 to Rs 285.1, registering a gain of Rs 219.5 or around 334.9%.

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

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

Read: Latest Annual Report Analysis of VISHNU CHEM