OLECTRA GREENTECH 2020-21 Annual Report Analysis

Wed, 31 Mar

OLECTRA GREENTECH 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.

OLECTRA GREENTECH Income Statement Analysis

• Operating income during the year rose 40.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY21 as against 12.2% in FY20.
• Depreciation charges decreased by 24.0% and finance costs decreased by 46.2% YoY, respectively.
• Other income declined by 52.9% YoY.
• Net profit for the year declined by 40.6% YoY.
• Net profit margins during the year declined from 6.7% in FY20 to 2.9% in FY21.

OLECTRA GREENTECH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,005	2,814	40.3%
Other income	Rs m	244	115	-52.9%
Total Revenues	Rs m	2,249	2,929	30.2%
Gross profit	Rs m	244	202	-17.4%
Depreciation	Rs m	175	133	-24.0%
Interest	Rs m	139	75	-46.2%
Profit before tax	Rs m	173	108	-37.5%
Tax	Rs m	38	28	-26.6%
Profit after tax	Rs m	135	80	-40.6%
Gross profit margin	%	12.2	7.2
Effective tax rate	%	22.0	25.8
Net profit margin	%	6.7	2.9

Don't Miss: Key Information for Long-term Investors

OLECTRA GREENTECH Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -22.3%.
• Long-term debt stood at Rs 39 million as compared to Rs 28 million during FY20, a growth of 38.9%.
• Current assets fell 23% and stood at Rs 6 billion, while fixed assets rose 85% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 10 billion during FY20, thereby witnessing a fall of 5%.

OLECTRA GREENTECH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,927	7,407	6.9
Current Liabilities	Rs m	2,320	1,802	-22.3
Long-term Debt	Rs m	28	39	38.9
Total Liabilities	Rs m	9,729	9,268	-4.7
Current assets	Rs m	8,096	6,251	-22.8
Fixed Assets	Rs m	1,634	3,018	84.7
Total Assets	Rs m	9,729	9,268	-4.7

OLECTRA GREENTECH Cash Flow Statement Analysis

• OLECTRA GREENTECH'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 -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -216 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 101 million from the Rs -189 million net cash flows seen during FY20.

OLECTRA GREENTECH 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	-2,186	2,087	-
Cash Flow from Investing Activities	Rs m	1,994	-1,770	-
Cash Flow from Financing Activities	Rs m	3	-216	-
Net Cash Flow	Rs m	-189	101	-

Current Valuations for OLECTRA GREENTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 216.2, stands at 220.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 54.2 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	24.4	34.3
TTM Earnings per share	Rs	1.6	1.0
Diluted earnings per share	Rs	1.6	1.0
Price to Cash Flow	x	12.3	54.2
TTM P/E ratio	x	28.3	220.9
Price / Book Value ratio	x	1.7	1.6
Market Cap	Rs m	12,095	11,571
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OLECTRA GREENTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY21, from 3.5x 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 improved and stood at 2.4x during FY21, from 2.2x 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 1.1% during FY21, from 2.0% 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 2.5% during FY21, from 4.5% 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 1.7% during FY21, from 2.8% 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	3.5	3.5
Debtors’ Days	Days	6,585	3,419
Interest coverage	x	2.2	2.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.8	1.7
Return on equity	%	2.0	1.1
Return on capital employed	%	4.5	2.5

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

OLECTRA GREENTECH Share Price Performance

Over the last one year, OLECTRA GREENTECH share price has moved up from Rs 46.7 to Rs 216.2, registering a gain of Rs 169.6 or around 363.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 22,252.2 (down 0.0%). Over the last one year it has moved up from 10,746.2 to 22,252.2, a gain of 11,506 points (up 107.1%).

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

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

Read: Latest Annual Report Analysis of OLECTRA GREENTECH