HAVELLS INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

HAVELLS INDIA 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.

HAVELLS INDIA Income Statement Analysis

• Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.2% in FY21 as against 11.2% in FY20.
• Depreciation charges increased by 14.2% and finance costs increased by 75.4% YoY, respectively.
• Other income grew by 65.2% YoY.
• Net profit for the year grew by 42.0% YoY.
• Net profit margins during the year grew from 7.8% in FY20 to 10.0% in FY21.

HAVELLS INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	94,403	104,573	10.8%
Other income	Rs m	1,134	1,874	65.2%
Total Revenues	Rs m	95,537	106,447	11.4%
Gross profit	Rs m	10,600	15,892	49.9%
Depreciation	Rs m	2,180	2,489	14.2%
Interest	Rs m	514	901	75.4%
Profit before tax	Rs m	9,041	14,376	59.0%
Tax	Rs m	1,688	3,932	133.0%
Profit after tax	Rs m	7,354	10,443	42.0%
Gross profit margin	%	11.2	15.2
Effective tax rate	%	18.7	27.4
Net profit margin	%	7.8	10.0

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HAVELLS INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 28 billion as compared to Rs 23 billion in FY20, thereby witnessing an increase of 19.4%.
• Long-term debt stood at Rs 4 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 53% and stood at Rs 53 billion, while fixed assets fell 2% and stood at Rs 35 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 89 billion as against Rs 71 billion during FY20, thereby witnessing a growth of 25%.

HAVELLS INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	43,109	51,757	20.1
Current Liabilities	Rs m	23,269	27,774	19.4
Long-term Debt	Rs m	0	3,937	0.0
Total Liabilities	Rs m	70,735	88,523	25.1
Current assets	Rs m	34,797	53,199	52.9
Fixed Assets	Rs m	35,938	35,324	-1.7
Total Assets	Rs m	70,735	88,523	25.1

HAVELLS INDIA Cash Flow Statement Analysis

• HAVELLS INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -8 billion, an improvement of 39.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 127% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 869 million from the Rs -4 billion net cash flows seen during FY20.

HAVELLS INDIA 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	8,267	6,603	-20.1%
Cash Flow from Investing Activities	Rs m	-5,477	-7,629	-
Cash Flow from Financing Activities	Rs m	-7,159	1,898	-
Net Cash Flow	Rs m	-4,368	869	-

Current Valuations for HAVELLS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,049.9, stands at 63.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 40.8 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	150.9	167.0
TTM Earnings per share	Rs	11.8	16.7
Diluted earnings per share	Rs	11.7	16.7
Price to Cash Flow	x	31.5	40.8
TTM P/E ratio	x	40.8	63.0
Price / Book Value ratio	x	9.2	10.2
Market Cap	Rs m	395,883	527,416
Dividends per share (Unadj.)	Rs	4.0	6.5

Ratio Analysis for HAVELLS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x 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 17.0x during FY21, from 18.6x 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 improved and stood at 20.2% during FY21, from 17.1% 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 improved and stood at 27.4% during FY21, from 22.2% 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 improved and stood at 12.8% during FY21, from 11.1% 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	1.5	1.9
Debtors’ Days	Days	1	2
Interest coverage	x	18.6	17.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.1	12.8
Return on equity	%	17.1	20.2
Return on capital employed	%	22.2	27.4

To see how HAVELLS INDIA has performed over the last 5 years, please visit here.

HAVELLS INDIA Share Price Performance

Over the last one year, HAVELLS INDIA share price has moved up from Rs 479.9 to Rs 1,049.9, registering a gain of Rs 570.1 or around 118.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for HAVELLS INDIA and quarterly results for HAVELLS INDIA)

Read: Latest Annual Report Analysis of HAVELLS INDIA