CENTRUM CAPITAL 2020-21 Annual Report Analysis

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CENTRUM CAPITAL 2020-21 Annual Report Analysis
Thu, 28 Oct

CENTRUM CAPITAL 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.

CENTRUM CAPITAL Income Statement Analysis

  • Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.1% in FY21 as against 44.2% in FY20.
  • Depreciation charges decreased by 4.2% and finance costs increased by 19.9% YoY, respectively.
  • Other income declined by 34.0% YoY.
  • Net profit for the year declined by 5939.2% YoY.
  • Net profit margins during the year declined from 0.1% in FY20 to 8.1% in FY21.

CENTRUM CAPITAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 4,726 5,002 5.8%
Other income Rs m 227 150 -34.0%
Total Revenues Rs m 4,953 5,152 4.0%
Gross profit Rs m 2,088 2,106 0.9%
Depreciation Rs m 200 192 -4.2%
Interest Rs m 1,989 2,384 19.9%
Profit before tax Rs m 127 -320 -352.7%
Tax Rs m 119 98 -17.9%
Profit after tax Rs m 7 -418 -5,939.2%
Gross profit margin % 44.2 42.1
Effective tax rate % 94.3 -30.7
Net profit margin % 0.1 -8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CENTRUM CAPITAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 15.8%.
  • Long-term debt stood at Rs 18 billion as compared to Rs 16 billion during FY20, a growth of 13.0%.
  • Current assets rose 17% and stood at Rs 6 billion, while fixed assets rose 6% and stood at Rs 27 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 33 billion as against Rs 31 billion during FY20, thereby witnessing a growth of 8%.

CENTRUM CAPITAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,877 5,424 -7.7
 
Current Liabilities Rs m 4,721 5,469 15.8
Long-term Debt Rs m 16,053 18,145 13.0
Total Liabilities Rs m 30,800 33,159 7.7
 
Current assets Rs m 5,409 6,354 17.5
Fixed Assets Rs m 25,391 26,805 5.6
Total Assets Rs m 30,800 33,159 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CENTRUM CAPITAL Cash Flow Statement Analysis

  • CENTRUM CAPITAL's cash flow from operating activities (CFO) during FY21 stood at Rs -404 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -563 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 119% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 403 million from the Rs 177 million net cash flows seen during FY20.

CENTRUM CAPITAL 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 -1,778 -404 -
Cash Flow from Investing Activities Rs m 1,330 -563 -
Cash Flow from Financing Activities Rs m 625 1,369 119.0%
Net Cash Flow Rs m 177 403 127.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CENTRUM CAPITAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs 0.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 41.9, stands at -51.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -77.2 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 11.4 12.0
TTM Earnings per share Rs 0.0 -1.0
Diluted earnings per share Rs 0.0 -1.0
Price to Cash Flow x 84.0 -77.2
TTM P/E ratio x -51.1 -51.1
Price / Book Value ratio x 1.5 1.5
Market Cap Rs m 17,432 17,453
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CENTRUM CAPITAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x 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 0.9x during FY21, from 1.1x 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 -7.7% during FY21, from 0.1% 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 8.8% during FY21, from 9.6% 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 5.9% during FY21, from 6.5% 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 1.1 1.2
Debtors’ Days Days 474 252
Interest coverage x 1.1 0.9
Debt to equity ratio x 2.7 3.3
Return on assets % 6.5 5.9
Return on equity % 0.1 -7.7
Return on capital employed % 9.6 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CENTRUM CAPITAL has performed over the last 5 years, please visit here.

CENTRUM CAPITAL Share Price Performance

Over the last one year, CENTRUM CAPITAL share price has moved up from Rs 15.9 to Rs 41.9, registering a gain of Rs 26.0 or around 163.5%.

Overall, the S&P BSE SENSEX is up 51.3% over the year.

(To know more, check out historical annual results for CENTRUM CAPITAL and quarterly results for CENTRUM CAPITAL)

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