Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


PENNAR INDUSTRIES 2020-21 Annual Report Analysis
Wed, 31 Mar

PENNAR 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.

PENNAR INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 27.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 33.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY21 as against 8.0% in FY20.
  • Depreciation charges increased by 12.5% and finance costs decreased by 4.5% YoY, respectively.
  • Other income declined by 8.0% YoY.
  • Net profit for the year declined by 94.7% YoY.
  • Net profit margins during the year declined from 2.5% in FY20 to 0.2% in FY21.

PENNAR INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 21,066 15,254 -27.6%
Other income Rs m 203 187 -8.0%
Total Revenues Rs m 21,268 15,440 -27.4%
Gross profit Rs m 1,691 1,128 -33.3%
Depreciation Rs m 428 482 12.5%
Interest Rs m 835 797 -4.5%
Profit before tax Rs m 631 37 -94.2%
Tax Rs m 97 8 -91.7%
Profit after tax Rs m 534 28 -94.7%
Gross profit margin % 8.0 7.4
Effective tax rate % 15.4 22.2
Net profit margin % 2.5 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PENNAR INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 4.3%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY20, a growth of 10.2%.
  • Current assets rose 8% and stood at Rs 12 billion, while fixed assets fell 6% and stood at Rs 7 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 2%.

PENNAR INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,003 6,958 -0.6
 
Current Liabilities Rs m 9,759 10,179 4.3
Long-term Debt Rs m 1,023 1,128 10.2
Total Liabilities Rs m 18,534 18,925 2.1
 
Current assets Rs m 10,998 11,851 7.8
Fixed Assets Rs m 7,536 7,075 -6.1
Total Assets Rs m 18,534 18,925 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PENNAR INDUSTRIES Cash Flow Statement Analysis

  • PENNAR INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs -428 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 434 million, an improvement of 146% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -55 million from the Rs 239 million net cash flows seen during FY20.

PENNAR 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 1,910 -428 -
Cash Flow from Investing Activities Rs m -721 -61 -
Cash Flow from Financing Activities Rs m -950 434 -
Net Cash Flow Rs m 239 -55 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PENNAR INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 3.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 16.3, stands at 81.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.7 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 145.0 107.3
TTM Earnings per share Rs 3.7 0.2
Diluted earnings per share Rs 3.8 0.2
Price to Cash Flow x 2.1 5.7
TTM P/E ratio x 3.7 81.0
Price / Book Value ratio x 0.5 0.4
Market Cap Rs m 3,733 2,889
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PENNAR INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x 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 1.0x during FY21, from 1.8x 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 0.4% during FY21, from 7.6% 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 10.3% during FY21, from 18.3% 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 4.4% during FY21, from 7.4% 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 1.1 1.2
Debtors’ Days Days 686 1,022
Interest coverage x 1.8 1.0
Debt to equity ratio x 0.1 0.2
Return on assets % 7.4 4.4
Return on equity % 7.6 0.4
Return on capital employed % 18.3 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PENNAR INDUSTRIES Share Price Performance

Over the last one year, PENNAR INDUSTRIES share price has moved up from Rs 14.0 to Rs 16.3, registering a gain of Rs 2.3 or around 16.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Annual Report FAQs

What is the current share price of PENNAR INDUSTRIES?

PENNAR INDUSTRIES currently trades at Rs 133.2 per share. You can check out the latest share price performance of PENNAR INDUSTRIES here...

What was the revenue of PENNAR INDUSTRIES in FY21? How does it compare to earlier years?

The revenues of PENNAR INDUSTRIES stood at Rs 15,440 m in FY21, which was down -27.4% compared to Rs 21,268 m reported in FY20.

PENNAR INDUSTRIES' revenue has grown from Rs 13,795 m in FY17 to Rs 15,440 m in FY21.

Over the past 5 years, the revenue of PENNAR INDUSTRIES has grown at a CAGR of 2.9%.

What was the net profit of PENNAR INDUSTRIES in FY21? How does it compare to earlier years?

The net profit of PENNAR INDUSTRIES stood at Rs 28 m in FY21, which was down -94.7% compared to Rs 534 m reported in FY20.

This compares to a net profit of Rs 667 m in FY19 and a net profit of Rs 905 m in FY18.

Over the past 5 years, PENNAR INDUSTRIES net profit has grown at a CAGR of -51.1%.

What does the cash flow statement of PENNAR INDUSTRIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PENNAR INDUSTRIES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -428 m as compared to Rs 1,910 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -61 m as compared to Rs -721 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 434 m as compared to Rs -950 m in FY20.

Here's the cash flow statement of PENNAR INDUSTRIES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-191-251,7361,910-428
From Investments411-387-2,042-721-61
From Financial Activity-209156129-950434
Net Cashflow11-256-177239-55

What does the Key Ratio analysis of PENNAR INDUSTRIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PENNAR INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and stood at 7.4% in FY21 as against 8.0% in FY20.
  • Net profit margins declined from 2.5% in FY20 to 0.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of PENNAR INDUSTRIES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.212.68.18.07.4
Net Profit Margin (%)3.65.23.12.50.2
Debt to Equity Ratio (x)0.20.20.20.10.2

Read: Latest Annual Report Analysis of PENNAR INDUSTRIES

Equitymaster requests your view! Post a comment on "PENNAR INDUSTRIES 2020-21 Annual Report Analysis". Click here!