CENTUM ELECTRONICS 2020-21 Annual Report Analysis

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CENTUM ELECTRONICS 2020-21 Annual Report Analysis
Thu, 28 Oct

CENTUM ELECTRONICS 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.

CENTUM ELECTRONICS Income Statement Analysis

  • Operating income during the year fell 11.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 1.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY21 as against 9.7% in FY20.
  • Depreciation charges decreased by 3.7% and finance costs decreased by 20.9% YoY, respectively.
  • Other income declined by 67.6% YoY.
  • Net profit for the year declined by 20.9% YoY.
  • Net profit margins during the year declined from 1.8% in FY20 to 1.6% in FY21.

CENTUM ELECTRONICS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 9,274 8,174 -11.9%
Other income Rs m 179 58 -67.6%
Total Revenues Rs m 9,453 8,232 -12.9%
Gross profit Rs m 904 895 -1.0%
Depreciation Rs m 470 453 -3.7%
Interest Rs m 373 295 -20.9%
Profit before tax Rs m 240 205 -14.4%
Tax Rs m 74 74 0.1%
Profit after tax Rs m 166 131 -20.9%
Gross profit margin % 9.7 11.0
Effective tax rate % 30.8 36.0
Net profit margin % 1.8 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CENTUM ELECTRONICS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 7 billion in FY20, thereby witnessing an decrease of -20.7%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 696 million during FY20, a growth of 56.3%.
  • Current assets fell 12% and stood at Rs 6 billion, while fixed assets fell 4% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 11 billion during FY20, thereby witnessing a fall of 9%.

CENTUM ELECTRONICS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,050 2,229 8.7
 
Current Liabilities Rs m 7,191 5,701 -20.7
Long-term Debt Rs m 696 1,089 56.3
Total Liabilities Rs m 10,741 9,783 -8.9
 
Current assets Rs m 7,013 6,194 -11.7
Fixed Assets Rs m 3,729 3,589 -3.8
Total Assets Rs m 10,741 9,783 -8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CENTUM ELECTRONICS Cash Flow Statement Analysis

  • CENTUM ELECTRONICS's cash flow from operating activities (CFO) during FY21 stood at Rs 809 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 119 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -662 million, an improvement of 35% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 275 million from the Rs -37 million net cash flows seen during FY20.

CENTUM ELECTRONICS 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 1,093 809 -26.0%
Cash Flow from Investing Activities Rs m -116 119 -
Cash Flow from Financing Activities Rs m -1,021 -662 -
Net Cash Flow Rs m -37 275 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CENTUM ELECTRONICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 12.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 535.3, stands at -20.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.8 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 720.0 634.7
TTM Earnings per share Rs 12.9 10.2
Diluted earnings per share Rs 12.9 10.2
Price to Cash Flow x 10.8 11.8
TTM P/E ratio x -20.0 -20.0
Price / Book Value ratio x 2.4 2.0
Market Cap Rs m 6,897 6,897
Dividends per share (Unadj.) Rs 2.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CENTUM ELECTRONICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.0x 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 1.7x during FY21, from 1.6x 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 5.9% during FY21, from 8.1% 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 15.1% during FY21, from 22.3% 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 4.4% during FY21, from 5.0% 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 1.0 1.1
Debtors’ Days Days 98 97
Interest coverage x 1.6 1.7
Debt to equity ratio x 0.3 0.5
Return on assets % 5.0 4.4
Return on equity % 8.1 5.9
Return on capital employed % 22.3 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CENTUM ELECTRONICS has performed over the last 5 years, please visit here.

CENTUM ELECTRONICS Share Price Performance

Over the last one year, CENTUM ELECTRONICS share price has moved up from Rs 279.0 to Rs 535.3, registering a gain of Rs 256.3 or around 91.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 27,175.9 (up 1.2%). Over the last one year it has moved up from 14,444.5 to 27,175.9, a gain of 12,731 points (up 88.1%).

Overall, the S&P BSE SENSEX is up 51.2% over the year.

(To know more, check out historical annual results for CENTUM ELECTRONICS and quarterly results for CENTUM ELECTRONICS)

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