ZUARI AGRO 2020-21 Annual Report Analysis

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ZUARI AGRO 2020-21 Annual Report Analysis
Tue, 2 Nov

ZUARI AGRO 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.

ZUARI AGRO Income Statement Analysis

  • Operating income during the year fell 8.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 205.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY21 as against 4.5% in FY20.
  • Depreciation charges decreased by 3.2% and finance costs decreased by 26.7% YoY, respectively.
  • Other income grew by 77.6% YoY.
  • Net profit for the year declined by 75.1% YoY.
  • Net profit margins during the year grew from 16.9% in FY20 to 4.6% in FY21.

ZUARI AGRO Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 50,044 45,726 -8.6%
Other income Rs m 499 886 77.6%
Total Revenues Rs m 50,543 46,612 -7.8%
Gross profit Rs m -2,228 2,359 -205.9%
Depreciation Rs m 1,106 1,071 -3.2%
Interest Rs m 5,346 3,919 -26.7%
Profit before tax Rs m -8,182 -1,745 -78.7%
Tax Rs m 365 385 5.3%
Profit after tax Rs m -8,547 -2,130 -75.1%
Gross profit margin % -4.5 5.2
Effective tax rate % -4.5 -22.0
Net profit margin % -16.9 -4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ZUARI AGRO Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 41 billion as compared to Rs 52 billion in FY20, thereby witnessing an decrease of -21.5%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 6 billion during FY20, a growth of 5.1%.
  • Current assets fell 22% and stood at Rs 27 billion, while fixed assets fell 14% and stood at Rs 26 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 53 billion as against Rs 65 billion during FY20, thereby witnessing a fall of 18%.

ZUARI AGRO Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,412 1,962 -42.5
 
Current Liabilities Rs m 52,131 40,916 -21.5
Long-term Debt Rs m 5,656 5,944 5.1
Total Liabilities Rs m 64,951 53,045 -18.3
 
Current assets Rs m 34,553 26,992 -21.9
Fixed Assets Rs m 30,398 26,053 -14.3
Total Assets Rs m 64,951 53,045 -18.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ZUARI AGRO Cash Flow Statement Analysis

  • ZUARI AGRO's cash flow from operating activities (CFO) during FY21 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 967.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -12 billion, an improvement of 51% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY20.

ZUARI AGRO 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 26,353 15,211 -42.3%
Cash Flow from Investing Activities Rs m -160 -1,708 -
Cash Flow from Financing Activities Rs m -24,042 -11,880 -
Net Cash Flow Rs m 2,152 1,623 -24.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ZUARI AGRO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -50.6, an improvement from the EPS of Rs -203.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 113.7, stands at -5.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at -4.5 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 1,189.8 1,087.2
TTM Earnings per share Rs -203.2 -50.6
Diluted earnings per share Rs -203.2 -50.6
Price to Cash Flow x -0.6 -4.5
TTM P/E ratio x -5.1 -5.1
Price / Book Value ratio x 1.6 2.0
Market Cap Rs m 4,782 4,782
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ZUARI AGRO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.7x 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 0.6x during FY21, from -0.5x 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 improved and stood at -108.6% during FY21, from -250.5% 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 27.5% during FY21, from -31.3% 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 3.4% during FY21, from -4.9% 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 0.7 0.7
Debtors’ Days Days 1,619 362
Interest coverage x -0.5 0.6
Debt to equity ratio x 1.7 3.0
Return on assets % -4.9 3.4
Return on equity % -250.5 -108.6
Return on capital employed % -31.3 27.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ZUARI AGRO Share Price Performance

Over the last one year, ZUARI AGRO share price has moved up from Rs 80.6 to Rs 113.7, registering a gain of Rs 33.1 or around 41.1%.

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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