CROMPTON GREAVES CONSUMER ELEC. 2021-22 Annual Report Analysis

Mon, 4 Jul

CROMPTON GREAVES CONSUMER ELEC. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CROMPTON GREAVES CONSUMER ELEC. Income Statement Analysis

• Operating income during the year rose 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY22 as against 15.0% in FY21.
• Depreciation charges increased by 42.4% and finance costs decreased by 17.7% YoY, respectively.
• Other income declined by 6.5% YoY.
• Net profit for the year declined by 6.2% YoY.
• Net profit margins during the year declined from 12.8% in FY21 to 10.7% in FY22.

CROMPTON GREAVES CONSUMER ELEC. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	48,035	53,941	12.3%
Other income	Rs m	777	727	-6.5%
Total Revenues	Rs m	48,813	54,668	12.0%
Gross profit	Rs m	7,185	7,565	5.3%
Depreciation	Rs m	297	423	42.4%
Interest	Rs m	429	353	-17.7%
Profit before tax	Rs m	7,236	7,515	3.9%
Tax	Rs m	1,070	1,732	61.9%
Profit after tax	Rs m	6,167	5,784	-6.2%
Gross profit margin	%	15.0	14.0
Effective tax rate	%	14.8	23.0
Net profit margin	%	12.8	10.7

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CROMPTON GREAVES CONSUMER ELEC. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 30 billion as compared to Rs 12 billion in FY21, thereby witnessing an increase of 145.0%.
• Long-term debt down at Rs 46 million as compared to Rs 3 billion during FY21, a fall of 98.5%.
• Current assets rose 20% and stood at Rs 31 billion, while fixed assets rose 249% and stood at Rs 33 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 64 billion as against Rs 35 billion during FY21, thereby witnessing a growth of 82%.

CROMPTON GREAVES CONSUMER ELEC. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	17,689	23,144	30.8
Current Liabilities	Rs m	12,309	30,155	145.0
Long-term Debt	Rs m	2,988	46	-98.5
Total Liabilities	Rs m	35,389	64,486	82.2
Current assets	Rs m	25,795	31,001	20.2
Fixed Assets	Rs m	9,594	33,485	249.0
Total Assets	Rs m	35,389	64,486	82.2

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement Analysis

• CROMPTON GREAVES CONSUMER ELEC.'s cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 billion, an improvement of 247.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 9 billion, an improvement of 1,043% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -922 million from the Rs 2 billion net cash flows seen during FY21.

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	8,303	7,234	-12.9%
Cash Flow from Investing Activities	Rs m	-4,957	-17,229	-
Cash Flow from Financing Activities	Rs m	-962	9,073	-
Net Cash Flow	Rs m	2,384	-922	-

Current Valuations for CROMPTON GREAVES CONSUMER ELEC.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.1, an decline from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 352.6, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.7 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 44.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	76.5	85.2
TTM Earnings per share	Rs	9.8	9.1
Diluted earnings per share	Rs	9.7	9.1
Price to Cash Flow	x	38.6	44.0
TTM P/E ratio	x	40.4	38.6
Price / Book Value ratio	x	11.6	11.8
Market Cap	Rs m	204,627	273,125
Dividends per share (Unadj.)	Rs	5.5	2.5

Ratio Analysis for CROMPTON GREAVES CONSUMER ELEC.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 2.1x during FY21. 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 22.3x during FY22, from 17.9x during FY21. 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 25.0% during FY22, from 34.9% during FY22. 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 33.9% during FY22, from 37.1% during FY21. 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 9.5% during FY22, from 18.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.1	1.0
Debtors’ Days	Days	4	4
Interest coverage	x	17.9	22.3
Debt to equity ratio	x	0.2	0.0
Return on assets	%	18.6	9.5
Return on equity	%	34.9	25.0
Return on capital employed	%	37.1	33.9

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 down from Rs 446.0 to Rs 352.6, registering a loss of Rs 93.4 or around 20.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 34,974.4 (up 0.3%). Over the last one year it has moved down from 36,058.3 to 34,974.4, a loss of 1,084 points (down 3.0%).

Overall, the S&P BSE SENSEX is up 1.0% 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.