CENTURY ENKA 2020-21 Annual Report Analysis

Wed, 31 Mar

CENTURY ENKA 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.

CENTURY ENKA Income Statement Analysis

• Operating income during the year fell 14.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY21 as against 6.5% in FY20.
• Depreciation charges decreased by 10.2% and finance costs decreased by 55.6% YoY, respectively.
• Other income declined by 43.2% YoY.
• Net profit for the year declined by 25.8% YoY.
• Net profit margins during the year declined from 6.7% in FY20 to 5.8% in FY21.

CENTURY ENKA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	14,235	12,208	-14.2%
Other income	Rs m	422	240	-43.2%
Total Revenues	Rs m	14,657	12,448	-15.1%
Gross profit	Rs m	932	1,102	18.2%
Depreciation	Rs m	455	409	-10.2%
Interest	Rs m	35	16	-55.6%
Profit before tax	Rs m	865	918	6.1%
Tax	Rs m	-91	208	-329.4%
Profit after tax	Rs m	955	709	-25.8%
Gross profit margin	%	6.5	9.0
Effective tax rate	%	-10.5	22.7
Net profit margin	%	6.7	5.8

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CENTURY ENKA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 15.5%.
• Long-term debt down at Rs 50 million as compared to Rs 97 million during FY20, a fall of 49.0%.
• Current assets rose 14% and stood at Rs 8 billion, while fixed assets fell 5% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 13 billion during FY20, thereby witnessing a growth of 6%.

CENTURY ENKA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,247	10,889	6.3
Current Liabilities	Rs m	1,265	1,461	15.5
Long-term Debt	Rs m	97	50	-49.0
Total Liabilities	Rs m	12,639	13,394	6.0
Current assets	Rs m	7,165	8,198	14.4
Fixed Assets	Rs m	5,473	5,197	-5.1
Total Assets	Rs m	12,639	13,394	6.0

CENTURY ENKA Cash Flow Statement Analysis

• CENTURY ENKA's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -760 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -286 million, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 41 million from the Rs -6 million net cash flows seen during FY20.

CENTURY ENKA 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	1,416	1,087	-23.3%
Cash Flow from Investing Activities	Rs m	-1,045	-760	-
Cash Flow from Financing Activities	Rs m	-378	-286	-
Net Cash Flow	Rs m	-6	41	-

Current Valuations for CENTURY ENKA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.5, an decline from the EPS of Rs 43.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 253.4, stands at 7.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 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	651.5	558.7
TTM Earnings per share	Rs	43.7	32.5
Diluted earnings per share	Rs	43.7	32.5
Price to Cash Flow	x	1.8	3.9
TTM P/E ratio	x	2.7	7.8
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	3,921	4,394
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for CENTURY ENKA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.6x during FY21, from 5.7x 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 60.2x during FY21, from 25.8x 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 6.5% during FY21, from 9.3% 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 8.5% during FY21, from 8.7% 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 5.4% during FY21, from 7.8% 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	5.7	5.6
Debtors’ Days	Days	391	695
Interest coverage	x	25.8	60.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	5.4
Return on equity	%	9.3	6.5
Return on capital employed	%	8.7	8.5

To see how CENTURY ENKA has performed over the last 5 years, please visit here.

CENTURY ENKA Share Price Performance

Over the last one year, CENTURY ENKA share price has moved up from Rs 118.4 to Rs 253.4, registering a gain of Rs 135.0 or around 114.0%.

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

(To know more, check out historical annual results for CENTURY ENKA and quarterly results for CENTURY ENKA)

Read: Latest Annual Report Analysis of CENTURY ENKA