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VINATI ORGANICS 2019-20 Annual Report Analysis
Tue, 31 Mar

VINATI ORGANICS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

VINATI ORGANICS Income Statement Analysis

  • Operating income during the year fell 8.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.3% in FY20 as against 37.6% in FY19.
  • Depreciation charges increased by 21.1% and finance costs decreased by 6.5% YoY, respectively.
  • Other income grew by 49.1% YoY.
  • Net profit for the year grew by 18.2% YoY.
  • Net profit margins during the year grew from 25.0% in FY19 to 32.4% in FY20.

VINATI ORGANICS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 11,279 10,289 -8.8%
Other income Rs m 302 450 49.1%
Total Revenues Rs m 11,581 10,739 -7.3%
Gross profit Rs m 4,246 4,149 -2.3%
Depreciation Rs m 274 332 21.1%
Interest Rs m 22 20 -6.5%
Profit before tax Rs m 4,252 4,247 -0.1%
Tax Rs m 1,428 908 -36.4%
Profit after tax Rs m 2,825 3,338 18.2%
Gross profit margin % 37.6 40.3
Effective tax rate % 33.6 21.4
Net profit margin % 25.0 32.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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VINATI ORGANICS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 890 million as compared to Rs 888 million in FY19, thereby witnessing an increase of 0.2%.
  • Current assets rose 21% and stood at Rs 6 billion, while fixed assets rose 15% and stood at Rs 8 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 14 billion as against Rs 12 billion during FY19, thereby witnessing a growth of 18%.

VINATI ORGANICS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 10,513 12,794 21.7
 
Current Liabilities Rs m 888 890 0.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,276 14,430 17.5
 
Current assets Rs m 5,311 6,426 21.0
Fixed Assets Rs m 6,965 8,004 14.9
Total Assets Rs m 12,276 14,430 17.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



VINATI ORGANICS Cash Flow Statement Analysis

  • VINATI ORGANICS's cash flow from operating activities (CFO) during FY20 stood at Rs 4 billion, an improvement of 107.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 1 billion from the Rs -826 million net cash flows seen during FY19.

VINATI ORGANICS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 2,004 4,159 107.6%
Cash Flow from Investing Activities Rs m -2,427 -1,975 -
Cash Flow from Financing Activities Rs m -403 -1,091 -
Net Cash Flow Rs m -826 1,094 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for VINATI ORGANICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.5, an decline from the EPS of Rs 55.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 769.4, stands at 23.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 7.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 219.5 100.1
TTM Earnings per share Rs 55.0 32.5
Diluted earnings per share Rs 27.5 32.5
Price to Cash Flow x 54.5 44.3
TTM P/E ratio x 59.8 23.7
Price / Book Value ratio x 6.3 12.7
Market Cap Rs m 66,706 162,498
Dividends per share (Unadj.) Rs 3.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for VINATI ORGANICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 7.2x during FY20, from 6.0x during FY19. 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 209.6x during FY20, from 196.2x during FY19. 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 26.1% during FY20, from 26.9% during FY20. 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 33.4% during FY20, from 40.7% during FY19. 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 23.3% during FY20, from 23.2% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 6.0 7.2
Debtors’ Days Days 790 716
Interest coverage x 196.2 209.6
Debt to equity ratio x 0.0 0.0
Return on assets % 23.2 23.3
Return on equity % 26.9 26.1
Return on capital employed % 40.7 33.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how VINATI ORGANICS has performed over the last 5 years, please visit here.

VINATI ORGANICS Share Price Performance

Over the last one year, VINATI ORGANICS share price has moved down from Rs 1,643.9 to Rs 769.4, registering a loss of Rs 874.5 or around 53.2%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for VINATI ORGANICS and quarterly results for VINATI ORGANICS)

Annual Report FAQs

What is the current share price of VINATI ORGANICS?

VINATI ORGANICS currently trades at Rs 0.0 per share. You can check out the latest share price performance of VINATI ORGANICS here...

What was the revenue of VINATI ORGANICS in FY20? How does it compare to earlier years?

The revenues of VINATI ORGANICS stood at Rs 10,739 m in FY20, which was down -7.3% compared to Rs 11,581 m reported in FY19.

VINATI ORGANICS' revenue has grown from Rs 5,990 m in FY16 to Rs 10,739 m in FY20.

Over the past 5 years, the revenue of VINATI ORGANICS has grown at a CAGR of 15.7%.

What was the net profit of VINATI ORGANICS in FY20? How does it compare to earlier years?

The net profit of VINATI ORGANICS stood at Rs 3,338 m in FY20, which was up 18.2% compared to Rs 2,825 m reported in FY19.

This compares to a net profit of Rs 1,439 m in FY18 and a net profit of Rs 1,403 m in FY17.

Over the past 5 years, VINATI ORGANICS net profit has grown at a CAGR of 26.2%.

What does the cash flow statement of VINATI ORGANICS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of VINATI ORGANICS reveals:

  • Cash flow from operations increased in FY20 and stood at Rs 4,159 m as compared to Rs 2,004 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs -1,975 m as compared to Rs -2,427 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -1,091 m as compared to Rs -403 m in FY19.

Here's the cash flow statement of VINATI ORGANICS for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations1,6751,3041,3832,0044,159
From Investments-722-268-388-2,427-1,975
From Financial Activity-502-451-299-403-1,091
Net Cashflow451586697-8261,094

What does the Key Ratio analysis of VINATI ORGANICS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of VINATI ORGANICS reveals:

  • Operating profit margins witnessed a fall and down at 40.3% in FY20 as against 37.6% in FY19.
  • Net profit margins grew from 25.0% in FY19 to 32.4% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.0 in FY19.

Here's the ratio/financial analysis of VINATI ORGANICS for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)34.936.327.637.640.3
Net Profit Margin (%)22.223.420.125.032.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of VINATI ORGANICS

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