CCL PRODUCTS 2020-21 Annual Report Analysis

Wed, 31 Mar

CCL PRODUCTS 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.

CCL PRODUCTS Income Statement Analysis

• Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.5% in FY21 as against 24.4% in FY20.
• Depreciation charges increased by 4.9% and finance costs decreased by 5.6% YoY, respectively.
• Other income declined by 29.6% YoY.
• Net profit for the year grew by 9.8% YoY.
• Net profit margins during the year grew from 14.6% in FY20 to 14.7% in FY21.

CCL PRODUCTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,392	12,425	9.1%
Other income	Rs m	122	86	-29.6%
Total Revenues	Rs m	11,514	12,511	8.7%
Gross profit	Rs m	2,782	2,925	5.2%
Depreciation	Rs m	471	494	4.9%
Interest	Rs m	180	170	-5.6%
Profit before tax	Rs m	2,253	2,348	4.2%
Tax	Rs m	594	525	-11.5%
Profit after tax	Rs m	1,659	1,823	9.8%
Gross profit margin	%	24.4	23.5
Effective tax rate	%	26.4	22.4
Net profit margin	%	14.6	14.7

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CCL PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 69.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 29.1%.
• Current assets rose 24% and stood at Rs 8 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 18 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 18%.

CCL PRODUCTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,284	10,873	17.1
Current Liabilities	Rs m	2,762	4,687	69.7
Long-term Debt	Rs m	2,495	1,769	-29.1
Total Liabilities	Rs m	15,094	17,882	18.5
Current assets	Rs m	6,360	7,911	24.4
Fixed Assets	Rs m	8,734	9,971	14.2
Total Assets	Rs m	15,094	17,882	18.5

CCL PRODUCTS Cash Flow Statement Analysis

• CCL PRODUCTS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 88.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 72.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 636 million, an improvement of 271% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 818 million from the Rs -350 million net cash flows seen during FY20.

CCL PRODUCTS 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	907	1,708	88.4%
Cash Flow from Investing Activities	Rs m	-884	-1,526	-
Cash Flow from Financing Activities	Rs m	-372	636	-
Net Cash Flow	Rs m	-350	818	-

Current Valuations for CCL PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an improvement from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 234.2, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.4 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	85.6	93.4
TTM Earnings per share	Rs	12.5	13.7
Diluted earnings per share	Rs	12.5	13.7
Price to Cash Flow	x	11.2	13.4
TTM P/E ratio	x	14.4	17.1
Price / Book Value ratio	x	3.1	2.9
Market Cap	Rs m	28,794	31,129
Dividends per share (Unadj.)	Rs	5.0	4.0

Ratio Analysis for CCL PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 2.3x 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 14.8x during FY21, from 13.5x 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 declined and down at 16.8% during FY21, from 17.9% 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 19.9% during FY21, from 20.7% 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 11.1% during FY21, from 12.2% 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	2.3	1.7
Debtors’ Days	Days	859	877
Interest coverage	x	13.5	14.8
Debt to equity ratio	x	0.3	0.2
Return on assets	%	12.2	11.1
Return on equity	%	17.9	16.8
Return on capital employed	%	20.7	19.9

To see how CCL PRODUCTS has performed over the last 5 years, please visit here.

CCL PRODUCTS Share Price Performance

Over the last one year, CCL PRODUCTS share price has moved up from Rs 179.6 to Rs 234.2, registering a gain of Rs 54.6 or around 30.4%.

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

(To know more, check out historical annual results for CCL PRODUCTS and quarterly results for CCL PRODUCTS)

Read: Latest Annual Report Analysis of CCL PRODUCTS