CROMPTON GREAVES CONSUMER ELEC. 2020-21 Annual Report Analysis

Wed, 31 Mar

CROMPTON GREAVES CONSUMER ELEC. 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.

CROMPTON GREAVES CONSUMER ELEC. Income Statement Analysis

• Operating income during the year rose 6.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY21 as against 13.3% in FY20.
• Depreciation charges increased by 10.8% and finance costs increased by 5.5% YoY, respectively.
• Other income grew by 28.3% YoY.
• Net profit for the year grew by 24.2% YoY.
• Net profit margins during the year grew from 11.0% in FY20 to 12.8% in FY21.

CROMPTON GREAVES CONSUMER ELEC. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	45,203	48,035	6.3%
Other income	Rs m	591	758	28.3%
Total Revenues	Rs m	45,793	48,793	6.6%
Gross profit	Rs m	5,991	7,205	20.3%
Depreciation	Rs m	268	297	10.8%
Interest	Rs m	407	429	5.5%
Profit before tax	Rs m	5,907	7,236	22.5%
Tax	Rs m	943	1,070	13.4%
Profit after tax	Rs m	4,964	6,167	24.2%
Gross profit margin	%	13.3	15.0
Effective tax rate	%	16.0	14.8
Net profit margin	%	11.0	12.8

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CROMPTON GREAVES CONSUMER ELEC. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 14 billion as compared to Rs 11 billion in FY20, thereby witnessing an increase of 25.9%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY20, a growth of 66.3%.
• Current assets rose 50% and stood at Rs 26 billion, while fixed assets fell 1% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 27 billion during FY20, thereby witnessing a growth of 32%.

CROMPTON GREAVES CONSUMER ELEC. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,271	17,689	33.3
Current Liabilities	Rs m	10,847	13,656	25.9
Long-term Debt	Rs m	1,797	2,988	66.3
Total Liabilities	Rs m	27,012	35,588	31.7
Current assets	Rs m	17,417	26,067	49.7
Fixed Assets	Rs m	9,595	9,521	-0.8
Total Assets	Rs m	27,012	35,588	31.7

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement Analysis

• CROMPTON GREAVES CONSUMER ELEC.'s cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 102.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -962 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -930 million net cash flows seen during FY20.

CROMPTON GREAVES CONSUMER ELEC. 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	4,109	8,303	102.1%
Cash Flow from Investing Activities	Rs m	89	-4,957	-
Cash Flow from Financing Activities	Rs m	-5,128	-962	-
Net Cash Flow	Rs m	-930	2,384	-

Current Valuations for CROMPTON GREAVES CONSUMER ELEC.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs 7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 393.5, stands at 40.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.1 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 31.7 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	72.1	76.5
TTM Earnings per share	Rs	7.9	9.8
Diluted earnings per share	Rs	7.8	9.7
Price to Cash Flow	x	25.3	31.7
TTM P/E ratio	x	26.6	40.4
Price / Book Value ratio	x	11.3	11.6
Market Cap	Rs m	150,344	204,627
Dividends per share (Unadj.)	Rs	0.0	5.5

Ratio Analysis for CROMPTON GREAVES CONSUMER ELEC.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.6x 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 17.9x during FY21, from 15.5x 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 34.9% during FY21, from 37.4% 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 37.1% during FY21, from 41.9% 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 declined and down at 18.5% during FY21, from 19.9% 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	1.6	1.9
Debtors’ Days	Days	4	4
Interest coverage	x	15.5	17.9
Debt to equity ratio	x	0.1	0.2
Return on assets	%	19.9	18.5
Return on equity	%	37.4	34.9
Return on capital employed	%	41.9	37.1

To see how CROMPTON GREAVES CONSUMER ELEC. has performed over the last 5 years, please visit here.

CROMPTON GREAVES CONSUMER ELEC. Share Price Performance

Over the last one year, CROMPTON GREAVES CONSUMER ELEC. share price has moved up from Rs 208.7 to Rs 393.5, registering a gain of Rs 184.8 or around 88.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for CROMPTON GREAVES CONSUMER ELEC. and quarterly results for CROMPTON GREAVES CONSUMER ELEC.)

Read: Latest Annual Report Analysis of CROMPTON GREAVES CONSUMER ELEC.