CHAMANLAL SE 2020-21 Annual Report Analysis

Wed, 31 Mar

CHAMANLAL SE 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.

CHAMANLAL SE Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY21 as against 9.9% in FY20.
• Depreciation charges increased by 4.5% and finance costs decreased by 3.7% YoY, respectively.
• Other income grew by 23.9% YoY.
• Net profit for the year grew by 56.3% YoY.
• Net profit margins during the year grew from 6.6% in FY20 to 9.6% in FY21.

CHAMANLAL SE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,977	8,515	6.7%
Other income	Rs m	27	33	23.9%
Total Revenues	Rs m	8,004	8,548	6.8%
Gross profit	Rs m	790	1,179	49.2%
Depreciation	Rs m	49	51	4.5%
Interest	Rs m	67	65	-3.7%
Profit before tax	Rs m	701	1,097	56.4%
Tax	Rs m	177	277	56.7%
Profit after tax	Rs m	525	820	56.3%
Gross profit margin	%	9.9	13.8
Effective tax rate	%	25.2	25.2
Net profit margin	%	6.6	9.6

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CHAMANLAL SE 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 8.9%.
• Long-term debt stood at Rs 576 million as compared to Rs 478 million during FY20, a growth of 20.5%.
• Current assets rose 24% and stood at Rs 5 billion, while fixed assets rose 13% and stood at Rs 532 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 22%.

CHAMANLAL SE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,733	3,496	27.9
Current Liabilities	Rs m	1,015	1,106	8.9
Long-term Debt	Rs m	478	576	20.5
Total Liabilities	Rs m	4,239	5,192	22.5
Current assets	Rs m	3,766	4,659	23.7
Fixed Assets	Rs m	472	532	12.7
Total Assets	Rs m	4,239	5,192	22.5

CHAMANLAL SE Cash Flow Statement Analysis

• CHAMANLAL SE's cash flow from operating activities (CFO) during FY21 stood at Rs 374 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -78 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 217 million, an improvement of 166% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 513 million from the Rs -3 million net cash flows seen during FY20.

CHAMANLAL SE 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	510	374	-26.6%
Cash Flow from Investing Activities	Rs m	-186	-78	-
Cash Flow from Financing Activities	Rs m	-327	217	-
Net Cash Flow	Rs m	-3	513	-

Current Valuations for CHAMANLAL SE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.9, an improvement from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 86.0, stands at 5.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 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	154.2	164.6
TTM Earnings per share	Rs	10.1	15.9
Diluted earnings per share	Rs	10.1	15.9
Price to Cash Flow	x	3.1	4.4
TTM P/E ratio	x	3.4	5.4
Price / Book Value ratio	x	1.1	1.1
Market Cap	Rs m	2,955	3,866
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for CHAMANLAL SE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY21, from 3.7x 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 18.0x during FY21, from 11.5x 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 improved and stood at 23.5% during FY21, from 19.2% 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 improved and stood at 28.5% during FY21, from 23.9% 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 improved and stood at 17.0% during FY21, from 14.0% 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	3.7	4.2
Debtors’ Days	Days	461	508
Interest coverage	x	11.5	18.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	14.0	17.0
Return on equity	%	19.2	23.5
Return on capital employed	%	23.9	28.5

To see how CHAMANLAL SE has performed over the last 5 years, please visit here.

CHAMANLAL SE Share Price Performance

Over the last one year, CHAMANLAL SE share price has moved up from Rs 34.4 to Rs 86.0, registering a gain of Rs 51.6 or around 149.9%.

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

(To know more, check out historical annual results for CHAMANLAL SE and quarterly results for CHAMANLAL SE)

Read: Latest Annual Report Analysis of CHAMANLAL SE