CONTROL PRINT 2020-21 Annual Report Analysis

Wed, 31 Mar

CONTROL PRINT 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.

CONTROL PRINT Income Statement Analysis

• Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY21 as against 20.2% in FY20.
• Depreciation charges increased by 32.5% and finance costs increased by 40.5% YoY, respectively.
• Other income declined by 53.4% YoY.
• Net profit for the year grew by 10.3% YoY.
• Net profit margins during the year grew from 13.5% in FY20 to 14.3% in FY21.

CONTROL PRINT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,949	2,037	4.5%
Other income	Rs m	35	16	-53.4%
Total Revenues	Rs m	1,984	2,053	3.5%
Gross profit	Rs m	394	468	18.9%
Depreciation	Rs m	93	123	32.5%
Interest	Rs m	9	12	40.5%
Profit before tax	Rs m	328	350	6.7%
Tax	Rs m	64	59	-8.0%
Profit after tax	Rs m	263	291	10.3%
Gross profit margin	%	20.2	23.0
Effective tax rate	%	19.6	16.9
Net profit margin	%	13.5	14.3

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CONTROL PRINT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 378 million as compared to Rs 327 million in FY20, thereby witnessing an increase of 15.7%.
• Current assets rose 13% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 13%.

CONTROL PRINT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,010	2,327	15.8
Current Liabilities	Rs m	327	378	15.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,564	2,901	13.1
Current assets	Rs m	1,541	1,740	12.9
Fixed Assets	Rs m	1,023	1,161	13.5
Total Assets	Rs m	2,564	2,901	13.1

CONTROL PRINT Cash Flow Statement Analysis

• CONTROL PRINT's cash flow from operating activities (CFO) during FY21 stood at Rs 380 million, an improvement of 20.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -263 million, an improvement of 52.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -89 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 28 million from the Rs -103 million net cash flows seen during FY20.

CONTROL PRINT 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	315	380	20.9%
Cash Flow from Investing Activities	Rs m	-173	-263	-
Cash Flow from Financing Activities	Rs m	-245	-89	-
Net Cash Flow	Rs m	-103	28	-

Current Valuations for CONTROL PRINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.8, an improvement from the EPS of Rs 16.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 241.5, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	119.4	124.7
TTM Earnings per share	Rs	16.1	17.8
Diluted earnings per share	Rs	16.1	17.8
Price to Cash Flow	x	8.9	9.3
TTM P/E ratio	x	12.0	13.6
Price / Book Value ratio	x	1.9	1.6
Market Cap	Rs m	3,827	3,835
Dividends per share (Unadj.)	Rs	8.0	8.5

Ratio Analysis for CONTROL PRINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.6x during FY21, from 4.7x 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 deteriorated and stood at 29.7x during FY21, from 38.8x 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 12.5% during FY21, from 13.1% 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 15.5% during FY21, from 16.7% 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 10.4% during FY21, from 10.6% 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	4.7	4.6
Debtors’ Days	Days	930	1,010
Interest coverage	x	38.8	29.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.6	10.4
Return on equity	%	13.1	12.5
Return on capital employed	%	16.7	15.5

To see how CONTROL PRINT has performed over the last 5 years, please visit here.

CONTROL PRINT Share Price Performance

Over the last one year, CONTROL PRINT share price has moved up from Rs 193.8 to Rs 241.5, registering a gain of Rs 47.8 or around 24.6%.

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

(To know more, check out historical annual results for CONTROL PRINT and quarterly results for CONTROL PRINT)

Read: Latest Annual Report Analysis of CONTROL PRINT