MENON BEARINGS 2020-21 Annual Report Analysis

Wed, 31 Mar

MENON BEARINGS 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.

MENON BEARINGS Income Statement Analysis

• Operating income during the year rose 7.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY21 as against 21.4% in FY20.
• Depreciation charges increased by 8.8% and finance costs decreased by 21.8% YoY, respectively.
• Other income grew by 13.0% YoY.
• Net profit for the year grew by 31.1% YoY.
• Net profit margins during the year grew from 10.4% in FY20 to 12.7% in FY21.

MENON BEARINGS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,391	1,495	7.5%
Other income	Rs m	13	14	13.0%
Total Revenues	Rs m	1,404	1,509	7.5%
Gross profit	Rs m	298	346	16.1%
Depreciation	Rs m	69	75	8.8%
Interest	Rs m	46	36	-21.8%
Profit before tax	Rs m	196	250	27.2%
Tax	Rs m	52	61	16.6%
Profit after tax	Rs m	144	189	31.1%
Gross profit margin	%	21.4	23.2
Effective tax rate	%	26.5	24.3
Net profit margin	%	10.4	12.7

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MENON BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 388 million as compared to Rs 369 million in FY20, thereby witnessing an increase of 5.2%.
• Long-term debt down at Rs 130 million as compared to Rs 205 million during FY20, a fall of 36.8%.
• Current assets rose 8% and stood at Rs 714 million, while fixed assets rose 0% and stood at Rs 834 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 1 billion during FY20, thereby witnessing a growth of 4%.

MENON BEARINGS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	882	987	11.9
Current Liabilities	Rs m	369	388	5.2
Long-term Debt	Rs m	205	130	-36.8
Total Liabilities	Rs m	1,495	1,548	3.6
Current assets	Rs m	661	714	8.0
Fixed Assets	Rs m	834	834	0.1
Total Assets	Rs m	1,495	1,548	3.6

MENON BEARINGS Cash Flow Statement Analysis

• MENON BEARINGS's cash flow from operating activities (CFO) during FY21 stood at Rs 242 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -61 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -212 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -31 million from the Rs -85 million net cash flows seen during FY20.

MENON BEARINGS 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	305	242	-20.6%
Cash Flow from Investing Activities	Rs m	-102	-61	-
Cash Flow from Financing Activities	Rs m	-287	-212	-
Net Cash Flow	Rs m	-85	-31	-

Current Valuations for MENON BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.7, stands at 16.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	24.8	26.7
TTM Earnings per share	Rs	2.6	3.4
Diluted earnings per share	Rs	2.6	3.4
Price to Cash Flow	x	8.2	9.7
TTM P/E ratio	x	12.3	16.0
Price / Book Value ratio	x	3.6	2.6
Market Cap	Rs m	3,211	2,554
Dividends per share (Unadj.)	Rs	2.5	1.5

Ratio Analysis for MENON BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.8x 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 8.0x during FY21, from 5.3x 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 19.2% during FY21, from 16.4% 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 improved and stood at 25.6% during FY21, from 22.3% 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 improved and stood at 14.5% during FY21, from 12.7% 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	1.8	1.8
Debtors’ Days	Days	932	1,082
Interest coverage	x	5.3	8.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.7	14.5
Return on equity	%	16.4	19.2
Return on capital employed	%	22.3	25.6

To see how MENON BEARINGS has performed over the last 5 years, please visit here.

MENON BEARINGS Share Price Performance

Over the last one year, MENON BEARINGS share price has moved up from Rs 31.0 to Rs 53.7, registering a gain of Rs 22.7 or around 73.2%.

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

(To know more, check out historical annual results for MENON BEARINGS and quarterly results for MENON BEARINGS)

Read: Latest Annual Report Analysis of MENON BEARINGS