MUNJAL SHOWA 2020-21 Annual Report Analysis

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MUNJAL SHOWA 2020-21 Annual Report Analysis
Mon, 1 Nov

MUNJAL SHOWA 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.

MUNJAL SHOWA Income Statement Analysis

  • Operating income during the year fell 15.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 56.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.2% in FY21 as against 4.3% in FY20.
  • Depreciation charges decreased by 20.2% and finance costs decreased by 46.0% YoY, respectively.
  • Other income declined by 2.4% YoY.
  • Net profit for the year declined by 38.5% YoY.
  • Net profit margins during the year declined from 3.2% in FY20 to 2.4% in FY21.

MUNJAL SHOWA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 12,882 10,854 -15.7%
Other income Rs m 246 240 -2.4%
Total Revenues Rs m 13,128 11,094 -15.5%
Gross profit Rs m 548 240 -56.2%
Depreciation Rs m 204 163 -20.2%
Interest Rs m 6 3 -46.0%
Profit before tax Rs m 585 314 -46.2%
Tax Rs m 159 53 -66.7%
Profit after tax Rs m 425 261 -38.5%
Gross profit margin % 4.3 2.2
Effective tax rate % 27.2 16.9
Net profit margin % 3.2 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MUNJAL SHOWA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 26.0%.
  • Current assets rose 8% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 4%.

MUNJAL SHOWA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,326 6,414 1.4
 
Current Liabilities Rs m 1,177 1,482 26.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,725 8,031 4.0
 
Current assets Rs m 5,046 5,455 8.1
Fixed Assets Rs m 2,679 2,576 -3.9
Total Assets Rs m 7,725 8,031 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MUNJAL SHOWA Cash Flow Statement Analysis

  • MUNJAL SHOWA's cash flow from operating activities (CFO) during FY21 stood at Rs -175 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 428 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -181 million, an improvement of 18% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 71 million from the Rs -387 million net cash flows seen during FY20.

MUNJAL SHOWA 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 657 -175 -
Cash Flow from Investing Activities Rs m -823 428 -
Cash Flow from Financing Activities Rs m -221 -181 -
Net Cash Flow Rs m -387 71 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MUNJAL SHOWA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.5, an decline from the EPS of Rs 10.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 130.4, stands at 19.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.3 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 322.1 271.3
TTM Earnings per share Rs 10.6 6.5
Diluted earnings per share Rs 10.6 6.5
Price to Cash Flow x 8.3 12.3
TTM P/E ratio x 19.1 19.1
Price / Book Value ratio x 0.7 0.7
Market Cap Rs m 5,214 5,213
Dividends per share (Unadj.) Rs 4.5 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MUNJAL SHOWA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY21, from 4.3x 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 103.1x during FY21, from 103.5x 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 4.1% during FY21, from 6.7% 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 5.0% during FY21, from 9.3% 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 5.6% 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 4.3 3.7
Debtors’ Days Days 397 661
Interest coverage x 103.5 103.1
Debt to equity ratio x 0.0 0.0
Return on assets % 5.6 3.3
Return on equity % 6.7 4.1
Return on capital employed % 9.3 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MUNJAL SHOWA has performed over the last 5 years, please visit here.

MUNJAL SHOWA Share Price Performance

Over the last one year, MUNJAL SHOWA share price has moved up from Rs 129.5 to Rs 130.4, registering a gain of Rs 0.9 or around 0.7%.

Overall, the S&P BSE SENSEX is up 48.6% over the year.

(To know more, check out historical annual results for MUNJAL SHOWA and quarterly results for MUNJAL SHOWA)

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Related Views on News

MUNJAL SHOWA Announces Quarterly Results (3QFY20); Net Profit Down 59.5% (Quarterly Result Update)

Jan 30, 2020 | Updated on Jan 30, 2020

For the quarter ended December 2019, MUNJAL SHOWA has posted a net profit of Rs 50 m (down 59.5% YoY). Sales on the other hand came in at Rs 3 bn (down 22.4% YoY). Read on for a complete analysis of MUNJAL SHOWA's quarterly results.

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