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CARBORUNDUM UNIVERSAL 2020-21 Annual Report Analysis
Wed, 31 Mar

CARBORUNDUM UNIVERSAL 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.

CARBORUNDUM UNIVERSAL Income Statement Analysis

  • Operating income during the year rose 1.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY21 as against 15.3% in FY20.
  • Depreciation charges decreased by 4.9% and finance costs decreased by 43.4% YoY, respectively.
  • Other income declined by 28.9% YoY.
  • Net profit for the year grew by 8.1% YoY.
  • Net profit margins during the year grew from 9.9% in FY20 to 10.6% in FY21.

CARBORUNDUM UNIVERSAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 25,990 26,317 1.3%
Other income Rs m 463 329 -28.9%
Total Revenues Rs m 26,452 26,646 0.7%
Gross profit Rs m 3,973 4,497 13.2%
Depreciation Rs m 1,045 995 -4.9%
Interest Rs m 63 36 -43.4%
Profit before tax Rs m 3,328 3,795 14.1%
Tax Rs m 755 1,016 34.4%
Profit after tax Rs m 2,572 2,780 8.1%
Gross profit margin % 15.3 17.1
Effective tax rate % 22.7 26.8
Net profit margin % 9.9 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

CARBORUNDUM UNIVERSAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 32.0%.
  • Long-term debt stood at Rs 50 million as compared to Rs 42 million during FY20, a growth of 17.9%.
  • Current assets rose 28% and stood at Rs 17 billion, while fixed assets rose 3% and stood at Rs 10 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 23 billion during FY20, thereby witnessing a growth of 17%.

CARBORUNDUM UNIVERSAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 18,521 21,236 14.7
 
Current Liabilities Rs m 3,532 4,661 32.0
Long-term Debt Rs m 42 50 17.9
Total Liabilities Rs m 22,825 26,756 17.2
 
Current assets Rs m 13,401 17,094 27.6
Fixed Assets Rs m 9,424 9,662 2.5
Total Assets Rs m 22,825 26,756 17.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CARBORUNDUM UNIVERSAL Cash Flow Statement Analysis

  • CARBORUNDUM UNIVERSAL's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 10.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 189.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -662 million, an improvement of 51% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY20.

CARBORUNDUM UNIVERSAL 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 4,069 4,508 10.8%
Cash Flow from Investing Activities Rs m -930 -2,695 -
Cash Flow from Financing Activities Rs m -1,346 -662 -
Net Cash Flow Rs m 1,675 1,188 -29.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CARBORUNDUM UNIVERSAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 13.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 509.2, stands at 34.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 3.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.5 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 137.2 138.8
TTM Earnings per share Rs 13.6 14.7
Diluted earnings per share Rs 13.5 14.6
Price to Cash Flow x 11.5 19.5
TTM P/E ratio x 16.2 34.8
Price / Book Value ratio x 3.0 3.5
Market Cap Rs m 55,711 73,414
Dividends per share (Unadj.) Rs 2.8 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CARBORUNDUM UNIVERSAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY21, from 3.8x 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 107.0x during FY21, from 53.6x 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 13.1% during FY21, from 13.9% 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 18.0% during FY21, from 18.3% 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 10.5% during FY21, from 11.5% 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 3.8 3.7
Debtors’ Days Days 56 66
Interest coverage x 53.6 107.0
Debt to equity ratio x 0.0 0.0
Return on assets % 11.5 10.5
Return on equity % 13.9 13.1
Return on capital employed % 18.3 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CARBORUNDUM UNIVERSAL has performed over the last 5 years, please visit here.

CARBORUNDUM UNIVERSAL Share Price Performance

Over the last one year, CARBORUNDUM UNIVERSAL share price has moved up from Rs 219.6 to Rs 509.2, registering a gain of Rs 289.6 or around 131.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for CARBORUNDUM UNIVERSAL and quarterly results for CARBORUNDUM UNIVERSAL)

Annual Report FAQs

What is the current share price of CARBORUNDUM UNIVERSAL?

CARBORUNDUM UNIVERSAL currently trades at Rs 1,266.6 per share. You can check out the latest share price performance of CARBORUNDUM UNIVERSAL here...

What was the revenue of CARBORUNDUM UNIVERSAL in FY21? How does it compare to earlier years?

The revenues of CARBORUNDUM UNIVERSAL stood at Rs 26,646 m in FY21, which was up 0.7% compared to Rs 26,452 m reported in FY20.

CARBORUNDUM UNIVERSAL's revenue has grown from Rs 20,213 m in FY17 to Rs 26,646 m in FY21.

Over the past 5 years, the revenue of CARBORUNDUM UNIVERSAL has grown at a CAGR of 7.2%.

What was the net profit of CARBORUNDUM UNIVERSAL in FY21? How does it compare to earlier years?

The net profit of CARBORUNDUM UNIVERSAL stood at Rs 2,780 m in FY21, which was up 8.1% compared to Rs 2,572 m reported in FY20.

This compares to a net profit of Rs 2,277 m in FY19 and a net profit of Rs 2,049 m in FY18.

Over the past 5 years, CARBORUNDUM UNIVERSAL net profit has grown at a CAGR of 14.0%.

What does the cash flow statement of CARBORUNDUM UNIVERSAL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of CARBORUNDUM UNIVERSAL reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 4,508 m as compared to Rs 4,069 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,695 m as compared to Rs -930 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -662 m as compared to Rs -1,346 m in FY20.

Here's the cash flow statement of CARBORUNDUM UNIVERSAL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,9532,1302,0184,0694,508
From Investments-813-748-799-930-2,695
From Financial Activity-2,071-832-1,091-1,346-662
Net Cashflow162549741,6751,188

What does the Key Ratio analysis of CARBORUNDUM UNIVERSAL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of CARBORUNDUM UNIVERSAL reveals:

  • Operating profit margins witnessed a fall and down at 17.1% in FY21 as against 15.3% in FY20.
  • Net profit margins grew from 9.9% in FY20 to 10.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of CARBORUNDUM UNIVERSAL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)16.517.016.315.317.1
Net Profit Margin (%)8.38.88.59.910.6
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of CARBORUNDUM UNIVERSAL

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