LUMAX IND 2020-21 Annual Report Analysis

Wed, 31 Mar

LUMAX IND 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.

LUMAX IND Income Statement Analysis

• Operating income during the year fell 11.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY21 as against 9.9% in FY20.
• Depreciation charges increased by 1.5% and finance costs increased by 29.9% YoY, respectively.
• Other income grew by 243.2% YoY.
• Net profit for the year declined by 72.2% YoY.
• Net profit margins during the year declined from 3.7% in FY20 to 1.2% in FY21.

LUMAX IND Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,016	14,260	-11.0%
Other income	Rs m	74	252	243.2%
Total Revenues	Rs m	16,089	14,512	-9.8%
Gross profit	Rs m	1,583	1,000	-36.8%
Depreciation	Rs m	635	645	1.5%
Interest	Rs m	225	292	29.9%
Profit before tax	Rs m	796	315	-60.4%
Tax	Rs m	198	149	-24.8%
Profit after tax	Rs m	598	166	-72.2%
Gross profit margin	%	9.9	7.0
Effective tax rate	%	24.9	47.3
Net profit margin	%	3.7	1.2

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LUMAX IND Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 12.3%.
• Long-term debt down at Rs 0 million as compared to Rs 264 million during FY20, a fall of 99.9%.
• Current assets rose 23% and stood at Rs 5 billion, while fixed assets fell 8% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 2%.

LUMAX IND Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,465	4,604	3.1
Current Liabilities	Rs m	7,445	8,358	12.3
Long-term Debt	Rs m	264	0	-99.9
Total Liabilities	Rs m	13,695	13,972	2.0
Current assets	Rs m	4,423	5,455	23.3
Fixed Assets	Rs m	9,273	8,517	-8.1
Total Assets	Rs m	13,695	13,972	2.0

LUMAX IND Cash Flow Statement Analysis

• LUMAX IND's cash flow from operating activities (CFO) during FY21 stood at Rs 762 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -307 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -506 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -51 million from the Rs 59 million net cash flows seen during FY20.

LUMAX IND 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	1,033	762	-26.2%
Cash Flow from Investing Activities	Rs m	-1,938	-307	-
Cash Flow from Financing Activities	Rs m	965	-506	-
Net Cash Flow	Rs m	59	-51	-

Current Valuations for LUMAX IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.8, an decline from the EPS of Rs 64.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,603.4, stands at 90.2 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	1,712.9	1,525.1
TTM Earnings per share	Rs	64.0	17.8
Diluted earnings per share	Rs	64.0	17.8
Price to Cash Flow	x	6.5	15.0
TTM P/E ratio	x	13.4	90.2
Price / Book Value ratio	x	2.7	2.6
Market Cap	Rs m	11,998	12,200
Dividends per share (Unadj.)	Rs	23.5	7.0

Ratio Analysis for LUMAX IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY21, from 0.6x 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 2.1x during FY21, from 4.5x 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 3.6% during FY21, from 13.4% 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 13.2% during FY21, from 21.6% 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 3.3% during FY21, from 6.0% 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	0.6	0.7
Debtors’ Days	Days	395	554
Interest coverage	x	4.5	2.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.0	3.3
Return on equity	%	13.4	3.6
Return on capital employed	%	21.6	13.2

To see how LUMAX IND has performed over the last 5 years, please visit here.

LUMAX IND Share Price Performance

Over the last one year, LUMAX IND share price has moved up from Rs 855.6 to Rs 1,603.4, registering a gain of Rs 747.8 or around 87.4%.

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

(To know more, check out historical annual results for LUMAX IND and quarterly results for LUMAX IND)

Read: Latest Annual Report Analysis of LUMAX IND