L.G.BALAKRISHNAN 2020-21 Annual Report Analysis

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L.G.BALAKRISHNAN 2020-21 Annual Report Analysis
Tue, 2 Nov

L.G.BALAKRISHNAN 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.

L.G.BALAKRISHNAN Income Statement Analysis

  • Operating income during the year rose 4.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.5% in FY21 as against 13.3% in FY20.
  • Depreciation charges increased by 5.9% and finance costs decreased by 32.9% YoY, respectively.
  • Other income grew by 74.2% YoY.
  • Net profit for the year grew by 47.4% YoY.
  • Net profit margins during the year grew from 5.8% in FY20 to 8.2% in FY21.

L.G.BALAKRISHNAN Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,428 16,090 4.3%
Other income Rs m 48 83 74.2%
Total Revenues Rs m 15,476 16,173 4.5%
Gross profit Rs m 2,050 2,660 29.8%
Depreciation Rs m 787 833 5.9%
Interest Rs m 163 109 -32.9%
Profit before tax Rs m 1,148 1,801 56.8%
Tax Rs m 247 473 91.3%
Profit after tax Rs m 901 1,328 47.4%
Gross profit margin % 13.3 16.5
Effective tax rate % 21.5 26.2
Net profit margin % 5.8 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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L.G.BALAKRISHNAN Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 39.5%.
  • Long-term debt down at Rs 192 million as compared to Rs 806 million during FY20, a fall of 76.1%.
  • Current assets rose 43% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 6 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 20%.

L.G.BALAKRISHNAN Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,061 8,794 24.5
 
Current Liabilities Rs m 3,006 4,194 39.5
Long-term Debt Rs m 806 192 -76.1
Total Liabilities Rs m 11,316 13,574 20.0
 
Current assets Rs m 4,974 7,118 43.1
Fixed Assets Rs m 6,342 6,456 1.8
Total Assets Rs m 11,316 13,574 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



L.G.BALAKRISHNAN Cash Flow Statement Analysis

  • L.G.BALAKRISHNAN's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 11.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 99.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -598 million, an improvement of 61% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 566 million from the Rs -52 million net cash flows seen during FY20.

L.G.BALAKRISHNAN 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 2,034 2,260 11.1%
Cash Flow from Investing Activities Rs m -551 -1,096 -
Cash Flow from Financing Activities Rs m -1,536 -598 -
Net Cash Flow Rs m -52 566 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for L.G.BALAKRISHNAN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.3, an improvement from the EPS of Rs 28.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 536.2, stands at 7.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.8 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 491.5 512.6
TTM Earnings per share Rs 28.7 42.3
Diluted earnings per share Rs 28.7 42.3
Price to Cash Flow x 10.0 7.8
TTM P/E ratio x 7.6 7.6
Price / Book Value ratio x 1.2 0.9
Market Cap Rs m 16,833 16,833
Dividends per share (Unadj.) Rs 5.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for L.G.BALAKRISHNAN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.7x 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 17.5x during FY21, from 8.1x 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 improved and stood at 15.1% during FY21, from 12.8% 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 21.3% during FY21, from 16.7% 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 10.6% during FY21, from 9.4% 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 1.7 1.7
Debtors’ Days Days 413 560
Interest coverage x 8.1 17.5
Debt to equity ratio x 0.1 0.0
Return on assets % 9.4 10.6
Return on equity % 12.8 15.1
Return on capital employed % 16.7 21.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how L.G.BALAKRISHNAN has performed over the last 5 years, please visit here.

L.G.BALAKRISHNAN Share Price Performance

Over the last one year, L.G.BALAKRISHNAN share price has moved up from Rs 249.4 to Rs 536.2, registering a gain of Rs 286.9 or around 115.0%.

Overall, the S&P BSE SENSEX is up 51.0% over the year.

(To know more, check out historical annual results for L.G.BALAKRISHNAN and quarterly results for L.G.BALAKRISHNAN)

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