VISHWARAJ SUGAR INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

VISHWARAJ SUGAR 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.

VISHWARAJ SUGAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY21 as against 10.5% in FY20.
• Depreciation charges increased by 1.2% and finance costs decreased by 14.6% YoY, respectively.
• Other income declined by 58.6% YoY.
• Net profit for the year declined by 205.2% YoY.
• Net profit margins during the year grew from 2.2% in FY20 to 1.9% in FY21.

VISHWARAJ SUGAR INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,639	4,265	17.2%
Other income	Rs m	15	6	-58.6%
Total Revenues	Rs m	3,654	4,271	16.9%
Gross profit	Rs m	383	620	62.0%
Depreciation	Rs m	146	147	1.2%
Interest	Rs m	417	357	-14.6%
Profit before tax	Rs m	-165	122	-173.9%
Tax	Rs m	-87	39	-145.5%
Profit after tax	Rs m	-79	83	-205.2%
Gross profit margin	%	10.5	14.5
Effective tax rate	%	52.4	32.2
Net profit margin	%	-2.2	1.9

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VISHWARAJ SUGAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 6.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 927 million during FY20, a growth of 10.5%.
• Current assets rose 13% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 6%.

VISHWARAJ SUGAR INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,218	2,260	1.9
Current Liabilities	Rs m	3,556	3,800	6.9
Long-term Debt	Rs m	927	1,024	10.5
Total Liabilities	Rs m	6,710	7,120	6.1
Current assets	Rs m	3,763	4,247	12.9
Fixed Assets	Rs m	2,947	2,873	-2.5
Total Assets	Rs m	6,710	7,120	6.1

VISHWARAJ SUGAR INDUSTRIES Cash Flow Statement Analysis

• VISHWARAJ SUGAR INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 559 million, an improvement of 14.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -62 million, an improvement of 60% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 412 million from the Rs 59 million net cash flows seen during FY20.

VISHWARAJ SUGAR 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	490	559	14.2%
Cash Flow from Investing Activities	Rs m	-274	-85	-
Cash Flow from Financing Activities	Rs m	-157	-62	-
Net Cash Flow	Rs m	59	412	602.8%

Current Valuations for VISHWARAJ SUGAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs -2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 120.1, stands at 281.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 18.4 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	96.9	113.5
TTM Earnings per share	Rs	-2.1	2.2
Diluted earnings per share	Rs	-0.4	0.4
Price to Cash Flow	x	182.4	18.4
TTM P/E ratio	x	-182.2	281.3
Price / Book Value ratio	x	1.4	1.9
Market Cap	Rs m	3,027	4,232
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for VISHWARAJ SUGAR INDUSTRIES

• 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 1.3x during FY21, from 0.6x 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 3.7% during FY21, from -3.6% 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 improved and stood at 14.6% during FY21, from 8.0% 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 improved and stood at 6.2% during FY21, from 5.0% 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	253	257
Interest coverage	x	0.6	1.3
Debt to equity ratio	x	0.4	0.5
Return on assets	%	5.0	6.2
Return on equity	%	-3.6	3.7
Return on capital employed	%	8.0	14.6

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

VISHWARAJ SUGAR INDUSTRIES Share Price Performance

Over the last one year, VISHWARAJ SUGAR INDUSTRIES share price has moved up from Rs 65.0 to Rs 120.1, registering a gain of Rs 55.1 or around 84.7%.

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

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

Read: Latest Annual Report Analysis of VISHWARAJ SUGAR INDUSTRIES