VADILAL INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

VADILAL INDUSTRIES 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.

VADILAL INDUSTRIES Income Statement Analysis

• Operating income during the year fell 22.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 55.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY21 as against 13.1% in FY20.
• Depreciation charges decreased by 3.6% and finance costs increased by 28.3% YoY, respectively.
• Other income grew by 73.6% YoY.
• Net profit for the year declined by 88.8% YoY.
• Net profit margins during the year declined from 6.9% in FY20 to 1.0% in FY21.

VADILAL INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,993	4,638	-22.6%
Other income	Rs m	96	167	73.6%
Total Revenues	Rs m	6,089	4,805	-21.1%
Gross profit	Rs m	787	353	-55.2%
Depreciation	Rs m	237	228	-3.6%
Interest	Rs m	167	214	28.3%
Profit before tax	Rs m	479	77	-84.0%
Tax	Rs m	66	31	-53.4%
Profit after tax	Rs m	414	46	-88.8%
Gross profit margin	%	13.1	7.6
Effective tax rate	%	13.7	39.8
Net profit margin	%	6.9	1.0

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VADILAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -2.5%.
• Long-term debt stood at Rs 572 million as compared to Rs 492 million during FY20, a growth of 16.2%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 6 billion during FY20, thereby witnessing a fall of 1%.

VADILAL INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,470	2,511	1.6
Current Liabilities	Rs m	2,385	2,324	-2.5
Long-term Debt	Rs m	492	572	16.2
Total Liabilities	Rs m	5,740	5,675	-1.1
Current assets	Rs m	2,339	2,421	3.5
Fixed Assets	Rs m	3,400	3,254	-4.3
Total Assets	Rs m	5,740	5,675	-1.1

VADILAL INDUSTRIES Cash Flow Statement Analysis

• VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 821 million, an improvement of 23.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -108 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -556 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 156 million from the Rs 35 million net cash flows seen during FY20.

VADILAL INDUSTRIES 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	666	821	23.2%
Cash Flow from Investing Activities	Rs m	-672	-108	-
Cash Flow from Financing Activities	Rs m	41	-556	-
Net Cash Flow	Rs m	35	156	344.7%

Current Valuations for VADILAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an decline from the EPS of Rs 57.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 898.7, stands at 139.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 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	833.5	645.1
TTM Earnings per share	Rs	57.6	6.4
Diluted earnings per share	Rs	57.6	6.4
Price to Cash Flow	x	5.0	18.7
TTM P/E ratio	x	7.9	139.6
Price / Book Value ratio	x	1.9	2.0
Market Cap	Rs m	4,647	5,136
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VADILAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 deteriorated and stood at 1.4x during FY21, from 3.9x 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 1.8% during FY21, from 16.7% 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 9.4% during FY21, from 21.8% 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 4.6% during FY21, from 10.1% 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	1.0
Debtors’ Days	Days	269	356
Interest coverage	x	3.9	1.4
Debt to equity ratio	x	0.2	0.2
Return on assets	%	10.1	4.6
Return on equity	%	16.7	1.8
Return on capital employed	%	21.8	9.4

To see how VADILAL INDUSTRIES has performed over the last 5 years, please visit here.

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved up from Rs 452.1 to Rs 898.7, registering a gain of Rs 446.7 or around 98.8%.

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

(To know more, check out historical annual results for VADILAL INDUSTRIES and quarterly results for VADILAL INDUSTRIES)

Read: Latest Annual Report Analysis of VADILAL INDUSTRIES