MISHRA DHATU NIGAM 2020-21 Annual Report Analysis
Fri, 22 Oct

MISHRA DHATU NIGAM 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.

MISHRA DHATU NIGAM Income Statement Analysis

  • Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.2% in FY21 as against 27.9% in FY20.
  • Depreciation charges increased by 3.4% and finance costs increased by 74.2% YoY, respectively.
  • Other income declined by 45.6% YoY.
  • Net profit for the year grew by 4.1% YoY.
  • Net profit margins during the year declined from 21.3% in FY20 to 20.0% in FY21.

MISHRA DHATU NIGAM Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 7,129 8,132 14.1%
Other income Rs m 364 198 -45.6%
Total Revenues Rs m 7,493 8,331 11.2%
Gross profit Rs m 1,990 2,459 23.6%
Depreciation Rs m 261 270 3.4%
Interest Rs m 73 127 74.2%
Profit before tax Rs m 2,021 2,261 11.9%
Tax Rs m 424 598 41.2%
Profit after tax Rs m 1,597 1,663 4.1%
Gross profit margin % 27.9 30.2
Effective tax rate % 21.0 26.5
Net profit margin % 21.3 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MISHRA DHATU NIGAM Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 7 billion in FY20, thereby witnessing an decrease of -7.8%.
  • Current assets fell 4% and stood at Rs 15 billion, while fixed assets rose 14% and stood at Rs 10 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 3%.

MISHRA DHATU NIGAM Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,568 10,711 12.0
 
Current Liabilities Rs m 6,969 6,426 -7.8
Long-term Debt Rs m 2 0 -100.0
Total Liabilities Rs m 23,964 24,592 2.6
 
Current assets Rs m 15,142 14,511 -4.2
Fixed Assets Rs m 8,821 10,081 14.3
Total Assets Rs m 23,964 24,592 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MISHRA DHATU NIGAM Cash Flow Statement Analysis

  • MISHRA DHATU NIGAM's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -369 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 240 million from the Rs -39 million net cash flows seen during FY20.

MISHRA DHATU NIGAM 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 2,044 1,759 -14.0%
Cash Flow from Investing Activities Rs m -1,952 -1,150 -
Cash Flow from Financing Activities Rs m -131 -369 -
Net Cash Flow Rs m -39 240 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MISHRA DHATU NIGAM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an improvement from the EPS of Rs 8.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 192.5, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 4.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.7 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 38.1 43.4
TTM Earnings per share Rs 8.5 8.9
Diluted earnings per share Rs 8.5 8.9
Price to Cash Flow x 19.4 18.7
TTM P/E ratio x 19.4 19.4
Price / Book Value ratio x 3.8 3.6
Market Cap Rs m 36,063 36,063
Dividends per share (Unadj.) Rs 2.6 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MISHRA DHATU NIGAM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY21, from 2.2x 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 18.8x during FY21, from 28.7x 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 15.5% during FY21, from 16.7% 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 22.3% during FY21, from 21.9% 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 7.3% during FY21, from 7.0% 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 2.2 2.3
Debtors’ Days Days 1,523 1,733
Interest coverage x 28.7 18.8
Debt to equity ratio x 0.0 0.0
Return on assets % 7.0 7.3
Return on equity % 16.7 15.5
Return on capital employed % 21.9 22.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MISHRA DHATU NIGAM has performed over the last 5 years, please visit here.

MISHRA DHATU NIGAM Share Price Performance

Over the last one year, MISHRA DHATU NIGAM share price has moved up from Rs 179.9 to Rs 192.5, registering a gain of Rs 12.6 or around 7.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,222.7 (down 3.5%). Over the last one year it has moved up from 8,617.2 to 20,222.7, a gain of 11,606 points (up 134.7%).

Overall, the S&P BSE SENSEX is up 49.8% over the year.

(To know more, check out historical annual results for MISHRA DHATU NIGAM and quarterly results for MISHRA DHATU NIGAM)