LUX INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

LUX INDUSTRIES 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.

LUX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.5% in FY21 as against 16.1% in FY20.
• Depreciation charges increased by 18.0% and finance costs decreased by 39.6% YoY, respectively.
• Other income grew by 85.8% YoY.
• Net profit for the year grew by 52.0% YoY.
• Net profit margins during the year grew from 10.6% in FY20 to 13.8% in FY21.

LUX INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,678	19,525	17.1%
Other income	Rs m	66	123	85.8%
Total Revenues	Rs m	16,744	19,649	17.3%
Gross profit	Rs m	2,686	3,804	41.6%
Depreciation	Rs m	151	179	18.0%
Interest	Rs m	211	127	-39.6%
Profit before tax	Rs m	2,391	3,621	51.5%
Tax	Rs m	618	927	50.0%
Profit after tax	Rs m	1,773	2,694	52.0%
Gross profit margin	%	16.1	19.5
Effective tax rate	%	25.9	25.6
Net profit margin	%	10.6	13.8

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LUX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -5.8%.
• Long-term debt stood at Rs 155 million as compared to Rs 78 million during FY20, a growth of 98.2%.
• Current assets rose 19% and stood at Rs 13 billion, while fixed assets rose 23% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 13 billion during FY20, thereby witnessing a growth of 19%.

LUX INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,403	10,056	35.8
Current Liabilities	Rs m	4,816	4,539	-5.8
Long-term Debt	Rs m	78	155	98.2
Total Liabilities	Rs m	12,501	14,917	19.3
Current assets	Rs m	10,741	12,754	18.7
Fixed Assets	Rs m	1,760	2,163	22.9
Total Assets	Rs m	12,501	14,917	19.3

LUX INDUSTRIES Cash Flow Statement Analysis

• LUX INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 154.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 299.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 786 million from the Rs 41 million net cash flows seen during FY20.

LUX INDUSTRIES 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	1,527	3,885	154.5%
Cash Flow from Investing Activities	Rs m	-442	-1,765	-
Cash Flow from Financing Activities	Rs m	-1,305	-1,334	-
Net Cash Flow	Rs m	41	786	1,808.5%

Current Valuations for LUX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.6, an improvement from the EPS of Rs 58.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,743.2, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.3 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	554.6	649.3
TTM Earnings per share	Rs	58.9	89.6
Diluted earnings per share	Rs	58.9	89.6
Price to Cash Flow	x	14.7	14.3
TTM P/E ratio	x	23.0	20.7
Price / Book Value ratio	x	5.1	4.1
Market Cap	Rs m	37,481	41,185
Dividends per share (Unadj.)	Rs	12.5	0.0

Ratio Analysis for LUX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY21, from 2.2x 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 29.5x during FY21, from 12.4x 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 26.8% during FY21, from 23.9% 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 improved and stood at 36.7% during FY21, from 34.8% 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 improved and stood at 18.9% during FY21, from 15.9% 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	2.2	2.8
Debtors’ Days	Days	10	9
Interest coverage	x	12.4	29.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	18.9
Return on equity	%	23.9	26.8
Return on capital employed	%	34.8	36.7

To see how LUX INDUSTRIES has performed over the last 5 years, please visit here.

LUX INDUSTRIES Share Price Performance

Over the last one year, LUX INDUSTRIES share price has moved up from Rs 937.7 to Rs 1,743.2, registering a gain of Rs 805.5 or around 85.9%.

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

(To know more, check out historical annual results for LUX INDUSTRIES and quarterly results for LUX INDUSTRIES)

Read: Latest Annual Report Analysis of LUX INDUSTRIES