CENTRUM CAPITAL 2020-21 Annual Report Analysis

Wed, 31 Mar

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 0.2% in FY20 to 8.4% 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	%	0.2	-8.4

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

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

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%

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 28.1, stands at -28.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at -35.6 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	18.4	-35.6
TTM P/E ratio	x	535.3	-28.0
Price / Book Value ratio	x	1.5	1.5
Market Cap	Rs m	8,882	8,061
Dividends per share (Unadj.)	Rs	0.0	0.0

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

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 9.2 to Rs 28.1, registering a gain of Rs 18.9 or around 205.4%.

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

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

Read: Latest Annual Report Analysis of CENTRUM CAPITAL