VOLTAS 2020-21 Annual Report Analysis

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VOLTAS 2020-21 Annual Report Analysis
Mon, 18 Oct

VOLTAS 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.

VOLTAS Income Statement Analysis

  • Operating income during the year fell 1.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.5% in FY21 as against 8.3% in FY20.
  • Depreciation charges increased by 6.0% and finance costs increased by 23.9% YoY, respectively.
  • Other income declined by 18.1% YoY.
  • Net profit for the year grew by 0.0% YoY.
  • Net profit margins during the year grew from 7.5% in FY20 to 7.6% in FY21.

VOLTAS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 76,581 75,558 -1.3%
Other income Rs m 2,306 1,889 -18.1%
Total Revenues Rs m 78,887 77,446 -1.8%
Gross profit Rs m 6,355 6,414 0.9%
Depreciation Rs m 320 339 6.0%
Interest Rs m 211 262 23.9%
Profit before tax Rs m 8,130 7,702 -5.3%
Tax Rs m 2,233 1,804 -19.2%
Profit after tax Rs m 5,898 5,898 0.0%
Gross profit margin % 8.3 8.5
Effective tax rate % 27.5 23.4
Net profit margin % 7.5 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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VOLTAS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 35 billion as compared to Rs 37 billion in FY20, thereby witnessing an decrease of -5.6%.
  • Long-term debt stood at Rs 57 million as compared to Rs 54 million during FY20, a growth of 4.6%.
  • Current assets fell 7% and stood at Rs 52 billion, while fixed assets rose 36% and stood at Rs 34 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 86 billion as against Rs 81 billion during FY20, thereby witnessing a growth of 6%.

VOLTAS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 42,802 49,934 16.7
 
Current Liabilities Rs m 37,138 35,041 -5.6
Long-term Debt Rs m 54 57 4.6
Total Liabilities Rs m 80,832 85,997 6.4
 
Current assets Rs m 55,784 51,894 -7.0
Fixed Assets Rs m 25,048 34,103 36.2
Total Assets Rs m 80,832 85,997 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



VOLTAS Cash Flow Statement Analysis

  • VOLTAS's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 20.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 21.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 59% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -417 million net cash flows seen during FY20.

VOLTAS 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 4,625 5,561 20.3%
Cash Flow from Investing Activities Rs m -2,105 -2,559 -
Cash Flow from Financing Activities Rs m -2,937 -1,215 -
Net Cash Flow Rs m -417 1,787 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for VOLTAS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.8, an improvement from the EPS of Rs 17.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,330.4, stands at 67.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 70.6 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 231.4 228.4
TTM Earnings per share Rs 17.8 17.8
Diluted earnings per share Rs 17.8 17.8
Price to Cash Flow x 70.8 70.6
TTM P/E ratio x 67.8 67.8
Price / Book Value ratio x 4.6 5.2
Market Cap Rs m 440,209 440,209
Dividends per share (Unadj.) Rs 4.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for VOLTAS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY21, from 1.5x 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 30.5x during FY21, from 39.5x 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 11.8% during FY21, from 13.8% 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 15.9% during FY21, from 19.5% 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 7.2% during FY21, from 7.6% 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 1.5 1.5
Debtors’ Days Days 9 9
Interest coverage x 39.5 30.5
Debt to equity ratio x 0.0 0.0
Return on assets % 7.6 7.2
Return on equity % 13.8 11.8
Return on capital employed % 19.5 15.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

VOLTAS Share Price Performance

Over the last one year, VOLTAS share price has moved up from Rs 700.7 to Rs 1,330.4, registering a gain of Rs 629.8 or around 89.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 46,874.0 (up 1.3%). Over the last one year it has moved up from 24,312.8 to 46,874.0, a gain of 22,561 points (up 92.8%).

Overall, the S&P BSE SENSEX is up 52.5% over the year.

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

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Related Views on News

VOLTAS Announces Quarterly Results (1QFY22); Net Profit Up 63.7% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, VOLTAS has posted a net profit of Rs 2 bn (up 63.7% YoY). Sales on the other hand came in at Rs 18 bn (up 37.6% YoY). Read on for a complete analysis of VOLTAS's quarterly results.

VOLTAS 2019-20 Annual Report Analysis (Annual Result Update)

Dec 14, 2020 | Updated on Dec 14, 2020

Here's an analysis of the annual report of VOLTAS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of VOLTAS. Also includes updates on the valuation of VOLTAS.

VOLTAS Announces Quarterly Results (1QFY21); Net Profit Down 50.2% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, VOLTAS has posted a net profit of Rs 934 m (down 50.2% YoY). Sales on the other hand came in at Rs 13 bn (down 52.1% YoY). Read on for a complete analysis of VOLTAS's quarterly results.

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