VISHNU CHEM 2020-21 Annual Report Analysis

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VISHNU CHEM 2020-21 Annual Report Analysis
Tue, 2 Nov

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 851.7, stands at 30.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.6 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 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 24.0 18.6
TTM P/E ratio x 30.3 30.3
Price / Book Value ratio x 0.8 1.1
Market Cap Rs m 10,174 10,174
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 154.4 to Rs 851.7, registering a gain of Rs 697.3 or around 451.6%.

Overall, the S&P BSE SENSEX is up 50.9% over the year.

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

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