GREAVES COTTON 2020-21 Annual Report Analysis

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GREAVES COTTON 2020-21 Annual Report Analysis
Mon, 6 Sep

GREAVES COTTON 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.

GREAVES COTTON Income Statement Analysis

  • Operating income during the year fell 21.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 72.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.0% in FY21 as against 8.6% in FY20.
  • Depreciation charges decreased by 0.8% and finance costs increased by 36.7% YoY, respectively.
  • Other income declined by 88.2% YoY.
  • Net profit for the year declined by 114.8% YoY.
  • Net profit margins during the year declined from 6.4% in FY20 to 1.2% in FY21.

GREAVES COTTON Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 19,110 15,004 -21.5%
Other income Rs m 709 84 -88.2%
Total Revenues Rs m 19,818 15,088 -23.9%
Gross profit Rs m 1,641 452 -72.5%
Depreciation Rs m 609 604 -0.8%
Interest Rs m 51 69 36.7%
Profit before tax Rs m 1,690 -138 -108.2%
Tax Rs m 417 50 -88.0%
Profit after tax Rs m 1,273 -188 -114.8%
Gross profit margin % 8.6 3.0
Effective tax rate % 24.7 -36.2
Net profit margin % 6.4 -1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GREAVES COTTON 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 15.7%.
  • Current assets rose 1% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 2%.

GREAVES COTTON Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,984 7,806 -2.2
 
Current Liabilities Rs m 4,002 4,630 15.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,390 12,671 2.3
 
Current assets Rs m 7,140 7,232 1.3
Fixed Assets Rs m 5,250 5,438 3.6
Total Assets Rs m 12,390 12,671 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GREAVES COTTON Cash Flow Statement Analysis

  • GREAVES COTTON's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 44.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -200 million, an improvement of 92% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 193 million from the Rs 1 billion net cash flows seen during FY20.

GREAVES COTTON 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 1,016 1,468 44.4%
Cash Flow from Investing Activities Rs m 2,550 -1,078 -
Cash Flow from Financing Activities Rs m -2,410 -200 -
Net Cash Flow Rs m 1,157 193 -83.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GREAVES COTTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an decline from the EPS of Rs 5.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 140.8, stands at -312.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 78.1 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 82.7 64.9
TTM Earnings per share Rs 5.5 -0.8
Diluted earnings per share Rs 5.5 -0.8
Price to Cash Flow x 17.3 78.1
TTM P/E ratio x -312.9 -312.9
Price / Book Value ratio x 3.3 3.3
Market Cap Rs m 32,542 32,542
Dividends per share (Unadj.) Rs 0.0 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GREAVES COTTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY21, from 1.8x 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 deteriorated and stood at -1.0x during FY21, from 34.3x 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 -2.4% during FY21, from 15.9% 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 -0.9% during FY21, from 21.8% 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 -0.9% during FY21, from 10.7% 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 1.8 1.6
Debtors’ Days Days 5 5
Interest coverage x 34.3 -1.0
Debt to equity ratio x 0.0 0.0
Return on assets % 10.7 -0.9
Return on equity % 15.9 -2.4
Return on capital employed % 21.8 -0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GREAVES COTTON has performed over the last 5 years, please visit here.

GREAVES COTTON Share Price Performance

Over the last one year, GREAVES COTTON share price has moved up from Rs 78.9 to Rs 140.8, registering a gain of Rs 61.9 or around 78.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 25,625.5 (up 0.3%). Over the last one year it has moved up from 13,988.7 to 25,625.5, a gain of 11,637 points (up 83.2%).

Overall, the S&P BSE SENSEX is up 49.2% over the year.

(To know more, check out historical annual results for GREAVES COTTON and quarterly results for GREAVES COTTON)

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Related Views on News

GREAVES COTTON Announces Quarterly Results (3QFY20); Net Profit Up 26.6% (Quarterly Result Update)

Feb 6, 2020 | Updated on Feb 6, 2020

For the quarter ended December 2019, GREAVES COTTON has posted a net profit of Rs 540 m (up 26.6% YoY). Sales on the other hand came in at Rs 5 bn (down 2.3% YoY). Read on for a complete analysis of GREAVES COTTON's quarterly results.

GREAVES COTTON Announces Quarterly Results (2QFY20); Net Profit Down 8.3% (Quarterly Result Update)

Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, GREAVES COTTON has posted a net profit of Rs 453 m (down 8.3% YoY). Sales on the other hand came in at Rs 5 bn (down 1.0% YoY). Read on for a complete analysis of GREAVES COTTON's quarterly results.

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