CARBORUNDUM UNIVERSAL 2021-22 Annual Report Analysis

Thu, 14 Jul

CARBORUNDUM UNIVERSAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CARBORUNDUM UNIVERSAL Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.1% in FY22 as against 17.1% in FY21.
• Depreciation charges increased by 15.2% and finance costs increased by 57.6% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year declined from 10.6% in FY21 to 9.9% in FY22.

CARBORUNDUM UNIVERSAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	26,317	33,248	26.3%
Other income	Rs m	329	408	24.1%
Total Revenues	Rs m	26,646	33,656	26.3%
Gross profit	Rs m	4,497	5,356	19.1%
Depreciation	Rs m	995	1,146	15.2%
Interest	Rs m	36	56	57.6%
Profit before tax	Rs m	3,795	4,562	20.2%
Tax	Rs m	1,016	1,265	24.6%
Profit after tax	Rs m	2,780	3,297	18.6%
Gross profit margin	%	17.1	16.1
Effective tax rate	%	26.8	27.7
Net profit margin	%	10.6	9.9

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CARBORUNDUM UNIVERSAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 65.8%.
• Long-term debt stood at Rs 78 million as compared to Rs 50 million during FY21, a growth of 56.2%.
• Current assets fell 4% and stood at Rs 16 billion, while fixed assets rose 71% and stood at Rs 16 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 33 billion as against Rs 27 billion during FY21, thereby witnessing a growth of 23%.

CARBORUNDUM UNIVERSAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	21,236	23,509	10.7
Current Liabilities	Rs m	4,661	7,727	65.8
Long-term Debt	Rs m	50	78	56.2
Total Liabilities	Rs m	26,756	32,959	23.2
Current assets	Rs m	17,094	16,478	-3.6
Fixed Assets	Rs m	9,662	16,481	70.6
Total Assets	Rs m	26,756	32,959	23.2

CARBORUNDUM UNIVERSAL Cash Flow Statement Analysis

• CARBORUNDUM UNIVERSAL's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 70.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 894 million, an improvement of 235% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY21.

CARBORUNDUM UNIVERSAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	4,508	2,445	-45.8%
Cash Flow from Investing Activities	Rs m	-2,695	-4,603	-
Cash Flow from Financing Activities	Rs m	-662	894	-
Net Cash Flow	Rs m	1,188	-1,308	-

Current Valuations for CARBORUNDUM UNIVERSAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.4, an improvement from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 760.4, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 32.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	138.8	175.1
TTM Earnings per share	Rs	14.7	17.4
Diluted earnings per share	Rs	14.6	17.4
Price to Cash Flow	x	25.6	32.0
TTM P/E ratio	x	34.8	43.8
Price / Book Value ratio	x	3.5	6.0
Market Cap	Rs m	73,414	142,127
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for CARBORUNDUM UNIVERSAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY22, from 3.7x during FY21. 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 81.8x during FY22, from 107.0x during FY21. 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 improved and stood at 14.0% during FY22, from 13.1% during FY22. 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 improved and stood at 19.6% during FY22, from 18.0% during FY21. 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 10.2% during FY22, from 10.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.7	2.1
Debtors’ Days	Days	66	53
Interest coverage	x	107.0	81.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	10.2
Return on equity	%	13.1	14.0
Return on capital employed	%	18.0	19.6

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 640.7 to Rs 760.4, registering a gain of Rs 119.7 or around 18.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 27,266.1 (up 0.4%). Over the last one year it has moved up from 23,275.2 to 27,266.1, a gain of 3,991 points (up 17.1%).

Overall, the S&P BSE SENSEX is up 2.0% over the year.

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