CROMPTON GREAVES CONSUMER ELEC. 2022-23 Annual Report Analysis

Wed, 14 Jun

CROMPTON GREAVES CONSUMER ELEC. has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CROMPTON GREAVES CONSUMER ELEC. Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY23 as against 14.0% in FY22.
• Depreciation charges increased by 174.2% and finance costs increased by 209.2% YoY, respectively.
• Other income declined by 8.1% YoY.
• Net profit for the year declined by 17.6% YoY.
• Net profit margins during the year declined from 10.7% in FY22 to 6.9% in FY23.

CROMPTON GREAVES CONSUMER ELEC. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	53,941	68,696	27.4%
Other income	Rs m	727	668	-8.1%
Total Revenues	Rs m	54,668	69,364	26.9%
Gross profit	Rs m	7,565	7,705	1.8%
Depreciation	Rs m	423	1,159	174.2%
Interest	Rs m	353	1,092	209.2%
Profit before tax	Rs m	7,515	6,122	-18.5%
Tax	Rs m	1,732	1,358	-21.6%
Profit after tax	Rs m	5,784	4,764	-17.6%
Gross profit margin	%	14.0	11.2
Effective tax rate	%	23.0	22.2
Net profit margin	%	10.7	6.9

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CROMPTON GREAVES CONSUMER ELEC. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 17 billion as compared to Rs 30 billion in FY22, thereby witnessing an decrease of -42.2%.
• Long-term debt stood at Rs 6 billion as compared to Rs 46 million during FY22, a growth of 12996.1%.
• Current assets fell 26% and stood at Rs 23 billion, while fixed assets fell 0% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 57 billion as against Rs 64 billion during FY22, thereby witnessing a fall of 12%.

CROMPTON GREAVES CONSUMER ELEC. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,143	25,196	8.9
Current Liabilities	Rs m	30,074	17,369	-42.2
Long-term Debt	Rs m	46	5,972	12,996.1
Total Liabilities	Rs m	64,486	56,544	-12.3
Current assets	Rs m	30,434	22,583	-25.8
Fixed Assets	Rs m	34,052	33,961	-0.3
Total Assets	Rs m	64,486	56,544	-12.3

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement Analysis

• CROMPTON GREAVES CONSUMER ELEC.'s cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -948 million from the Rs -922 million net cash flows seen during FY22.

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	7,364	5,526	-25.0%
Cash Flow from Investing Activities	Rs m	-17,359	2,632	-
Cash Flow from Financing Activities	Rs m	9,073	-9,105	-
Net Cash Flow	Rs m	-922	-948	-

Current Valuations for CROMPTON GREAVES CONSUMER ELEC.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an decline from the EPS of Rs 9.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 285.6, stands at 38.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 38.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	85.2	108.0
TTM Earnings per share	Rs	9.1	7.5
Diluted earnings per share	Rs	9.0	7.4
Price to Cash Flow	x	38.5	38.0
TTM P/E ratio	x	41.4	38.3
Price / Book Value ratio	x	11.8	8.9
Market Cap	Rs m	273,125	224,833
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for CROMPTON GREAVES CONSUMER ELEC.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.0x during FY22. 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 deteriorated and stood at 6.6x during FY23, from 22.3x during FY22. 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 18.9% during FY23, from 25.0% during FY23. 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 23.1% during FY23, from 33.9% during FY22. 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 improved and stood at 10.4% during FY23, from 9.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.3
Debtors’ Days	Days	4	4
Interest coverage	x	22.3	6.6
Debt to equity ratio	x	0.0	0.2
Return on assets	%	9.5	10.4
Return on equity	%	25.0	18.9
Return on capital employed	%	33.9	23.1

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 down from Rs 317.2 to Rs 285.6, registering a loss of Rs 31.7 or around 10.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,348.5 (up 0.1%). Over the last one year it has moved up from 35,467.2 to 42,348.5, a gain of 6,881 points (up 19.4%).

Overall, the S&P BSE SENSEX is up 19.3% over the year.

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