VINATI ORGANICS 2019-20 Annual Report Analysis

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VINATI ORGANICS 2019-20 Annual Report Analysis
Mon, 14 Dec

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 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.2% in FY20 as against 37.5% in FY19.
  • Depreciation charges increased by 21.1% and finance costs increased by 16.0% 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 24.4% in FY19 to 31.1% 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 4,234 4,139 -2.2%
Depreciation Rs m 274 332 21.1%
Interest Rs m 9 11 16.0%
Profit before tax Rs m 4,252 4,247 -0.1%
Tax Rs m 1,428 909 -36.4%
Profit after tax Rs m 2,825 3,338 18.2%
Gross profit margin % 37.5 40.2
Effective tax rate % 33.6 21.4
Net profit margin % 24.4 31.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 17% 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 6,657 7,817 17.4
Total Assets Rs m 12,276 14,430 17.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VINATI ORGANICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.0, an improvement from the EPS of Rs 55.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,120.6, stands at 41.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 7.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.4 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 219.5 200.2
TTM Earnings per share Rs 55.0 65.0
Diluted earnings per share Rs 27.5 32.5
Price to Cash Flow x 18.6 31.4
TTM P/E ratio x 20.9 41.8
Price / Book Value ratio x 6.3 6.4
Market Cap Rs m 57,588 115,178
Dividends per share (Unadj.) Rs 7.0 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 deteriorated and stood at 390.6x during FY20, from 453.4x 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 33.3% during FY20, from 40.5% 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 23.2% during FY20, from 23.1% 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 79 72
Interest coverage x 453.4 390.6
Debt to equity ratio x 0.0 0.0
Return on assets % 23.1 23.2
Return on equity % 26.9 26.1
Return on capital employed % 40.5 33.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 979.8 to Rs 1,120.6, registering a gain of Rs 140.8 or around 14.4%.

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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

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Related Views on News

VINATI ORGANICS Announces Quarterly Results (3QFY21); Net Profit Down 4.0% (Quarterly Result Update)

Feb 3, 2021 | Updated on Feb 3, 2021

For the quarter ended December 2020, VINATI ORGANICS has posted a net profit of Rs 641 m (down 4.0% YoY). Sales on the other hand came in at Rs 2 bn (down 6.3% YoY). Read on for a complete analysis of VINATI ORGANICS's quarterly results.

VINATI ORGANICS Announces Quarterly Results (2QFY21); Net Profit Down 43.6% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, VINATI ORGANICS has posted a net profit of Rs 620 m (down 43.6% YoY). Sales on the other hand came in at Rs 2 bn (down 10.5% YoY). Read on for a complete analysis of VINATI ORGANICS's quarterly results.

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