RATING

RECOMMENDATION

Neutral

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Neutral

Business Type

Traditional Business

RATING

RECOMMENDATION

Neutral

Business Type

Traditional Business

  • Merino Industries Limited Growth

If you want to know about Merino Industries Limited Revenue Growth journey before investing, Just go through this page and know about Net Growth, Key Ratio, etc. Collect all the important information about Merino Industries Ltd Unlisted Shares.

Merino Industries Limited Revenue Growth

Growth in %

  • -10.28%

    1 Year

  • 2.61%

    3 Year

  • 6.63%

    5 Year

In FY21, the total revenue of the company witnessed a de-growth of 10% from FY20. There has been an overall decrease in the revenue instead of the COVID-19 lockdown and restrictions. Revenue from operations decreased by 12% in FY21 compared to FY20, with revenue from laminates declining by 14%, or Rs.169.73 Cr., compared to a growth of Rs. 4.40 Cr. in FY20, and non-laminate revenues declined by 11% or Rs. 34 Cr., compared to a growth of Rs. 10.68 Cr. in FY20. Other income, on the other hand, grew significantly by 127% in FY21 from FY20, primarily on account of an increase in the fair value gains on the financial assets. 

Merino Industries Limited Net Profit Growth(PAT)

Growth in %

  • 1.87%

    1 Year

  • 7.28%

    3 Year

  • 8.83%

    5 Year

In FY21, despite a fall in revenue of 10%, or Rs. 153 Cr., the company witnessed a higher net profit of Rs. 132 Cr. in FY21, which represents a marginal growth of 2%. The reason for such higher net profits is the higher scale of operations and cost-efficiency. Overall expenses de-grew by 15% in FY21 from FY20, mostly attributable to lower other expenses in FY21 than in FY20, improving net profits altogether. 

Merino Industries Limited EPS Growth

Growth in %

  • 1.90%

    1 Year

  • 4.64%

    3 Year

  • 7.21%

    5 Year

The company has witnessed an EPS growth of 2% in FY21 from FY20. The reason for the increase in the EPS is primarily attributable to an increase in the net profits of the company. Although it must be noted that there was a total increase in the number of shares pursuant to business company, which has increased the overall denominator, yet net profits were sufficient enough to register higher EPS in FY21 from FY20. 

  • Merino Industries Limited Book Value Growth

Growth in %

  • 13.70%

    1 Year

  • 18.13%

    3 Year

  • 20.38%

    4 Year

The overall increase in the equity of the company by 15% from FY20 due to the addition of equity shares pursuant to business combination, along with an increase in the retained earnings due to an increase in the net profits of the company, has increased the numerator, but the increase in the shares of the company, which was a result of business combination, led to an overall fall in the book value per share of the company in FY21. 

Merino Industries Limited EBITDA Growth

Growth in %

  • 5.37%

    1 Year

  • 2.93%

    3 Year

  • 6.14%

    5 Year

The EBITDA of the company in FY21 grew by 5% over FY20. The reason for such an increase in the EBITDA is the operational scalability of the company, which is also witnessed by lower COGS, resulting in the higher gross margin in FY21 over FY20. Also, lower employee benefit expenses and other expenses have further improved the overall EBITDA despite the fall in revenue in FY21 in lieu of COVID-19 restrictions. 

Merino Industries Limited Operating Profit Growth

Growth in %

  • 8.28%

    1 Year

  • 0.30%

    3 Year

  • 3.74%

    5 Year

The EBIT of the company in FY21 has witnessed a sharp growth of 8% from FY20. Overall growth in EBITDA is the primary reason for the growth in the EBIT of the company. Along with the EBITDA growth, lower depreciation expense gave a further boost to EBIT. Depreciation has been reduced primarily as a result of lower property, plant, and equipment additions in FY21 compared to FY20.

Merino Industries Limited Asset Growth

Growth in %

  • 2.89%

    1 Year

  • 12.00%

    3 Year

  • 16.70%

    5 Year

Overall, in FY21, there was a marginal increase in the total assets of the company. Non-current assets constitute about 57% of the total assets in FY21, out of which non-current investments comprise the largest part of the segment. Overall, non-current assets have witnessed a growth of 28%, while current assets have witnessed a de-growth of 19% in FY21 from FY20. The reason for such an increase in the non-current investment worth Rs. 215 Cr. is the attractive investment opportunities in COVID-19 that were presented. 

Merino Industries Limited Cash Flow from Operations

Growth in %

  • 94.68%

    1 Year

  • 44.17%

    3 Year

  • 19.58%

    5 Year

Cash flow from operations has improved considerably, registering a growth of 95% in FY21 from FY20. The growth in cash flow from operations is primarily attributable to changes in the working capital, mainly from decreases in non-current and current assets and a decrease in the inventory, which was a result of a fall in the production capacity along with a fall in the buying capacity in lieu of COVID-19 restrictions. 

  • Merino Industries Limited Solvency Ratios


Merino Industries Limited D/E Ratio

There has been an overall improvement in the D/E ratio of the company due to the dual phenomenon of an increase in equity and a decrease in the overall debt of the company in FY21. This has been attributed to increases in shareholder value by higher retained earnings and securing the benefit of a lower cost of debt in FY21 due to moratorium period in lieu of COVID-19 restrictions. The overall increase in the equity is attributable to the business combination of Merino Panel Products Limited, residual business of Merino Services Limited, and residual business of Merino Exports Private Limited, which further improved the debt/equity of the company. 

Merino Industries Limited Current Ratio

The current ratio of the company in FY21 witnessed a marginal downfall of 2.5% from FY20. Current assets de-grew by 19%, mainly due to lower realisation of inventory in FY21, due to falling purchasing power in the world altogether in the light of COVID-19. Current liabilities, on the other hand, de-grew by 14% due to a decrease in short-term borrowings as the company did not undertake any unsecured debt capital from banks for their working capital needs due to market stringency amid COVID-19. With such a decrease in the current assets and current liabilities, the current ratio got negatively impacted. 

Merino Industries Limited Quick Ratio

The quick ratio, on the other hand, grew by 1.5% in FY21 from FY20. This phenomenon has risen in lieu of a major fall in the current assets on account of a fall in the inventory in FY21, which impacted the current ratio negatively. When that was taken out of the equation, the quick ratio improved in FY21. 

Merino Industries Limited Interest Coverage Ratio

The interest coverage ratio of the company has improved considerably, with lower interest expense in FY21 compared to FY20. The interest coverage ratio improved with the overall improvement in the EBIT of the company. 

  • Merino Industries Limited Operating Efficiency

In FY21, there has been a steady jump in the operating efficiency of the company, which is reflected in all the margin ratios below. The reason for such is the reduced feasible overheads through direct cost moderation, working from home and low promotional spending.

Merino Industries Limited Operating Profit EBIT Margin(OPM)

Merino Industries Limited Profit Before Tax Margin (PBT Margin)

Merino Industries Limited Profit After Tax Margin (PAT Margin)

  • Merino Industries Limited Profitablity Ratio


Merino Industries Limited Return on Equity(RoE)

ROE decreased by 10% in FY21 compared to FY20. As per Dupont analysis, the major cause of the fall in the ROE is the low asset turnover realised in FY21. Total assets have increased by 19%, but overall assets have decreased if investments were excluded. These disposals of assets amid COVID-19 led to lower sales realisation and, furthermore, a reduction in the ROE. Due to prudent cost management initiatives in lieu of COVID-19 restrictions, net income margin witnessed a growth of 15.8% on the given sales. The equity multiplier has witnessed a marginal decrease as more of the assets were financed through equity, with lower working capital limits from banks to meet its requirements. ROE was negatively impacted by the collective fall in equity multiplier and lower asset turnover. 

Merino Industries Limited Return on Capital Employed(RoCE)

ROCE also witnessed a sharp de-growth of 3.5% in FY21 from FY20. With the business combination in place, the company's total equity increased, but this did not translate into an increase in EBIT, resulting in a lower ROCE in FY21 compared to FY20.

Merino Industries Limited Return to Assets (RoA)

ROA in FY21 fell by 6% from FY20. attributed to the disposal of assets (excluding investments from total assets) amid COVID-19 despite an increase in the overall assets, which did not translate into higher profit realisation, converging into a fall of ROA altogether. 

  • Merino Industries Limited Valuation Ratios

Merino Industries Limited Dividend Yield

Merino Industries Limited Earning Yield