POLYCAB INDIA 2020-21 Annual Report Analysis

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POLYCAB INDIA 2020-21 Annual Report Analysis
Mon, 18 Oct

POLYCAB INDIA 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.

POLYCAB INDIA Income Statement Analysis

  • Operating income during the year rose 1.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY21 as against 12.9% in FY20.
  • Depreciation charges increased by 16.0% and finance costs increased by 7.3% YoY, respectively.
  • Other income grew by 43.6% YoY.
  • Net profit for the year grew by 14.6% YoY.
  • Net profit margins during the year grew from 8.7% in FY20 to 9.8% in FY21.

POLYCAB INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 88,300 89,265 1.1%
Other income Rs m 928 1,332 43.6%
Total Revenues Rs m 89,227 90,598 1.5%
Gross profit Rs m 11,350 11,717 3.2%
Depreciation Rs m 1,609 1,866 16.0%
Interest Rs m 495 531 7.3%
Profit before tax Rs m 10,174 10,652 4.7%
Tax Rs m 2,444 1,791 -26.7%
Profit after tax Rs m 7,730 8,861 14.6%
Gross profit margin % 12.9 13.1
Effective tax rate % 24.0 16.8
Net profit margin % 8.7 9.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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POLYCAB INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 20 billion as compared to Rs 20 billion in FY20, thereby witnessing an increase of 0.3%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 107 million during FY20, a growth of 873.0%.
  • Current assets rose 18% and stood at Rs 48 billion, while fixed assets rose 17% and stood at Rs 22 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 70 billion as against Rs 60 billion during FY20, thereby witnessing a growth of 18%.

POLYCAB INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 38,096 47,248 24.0
 
Current Liabilities Rs m 20,091 20,146 0.3
Long-term Debt Rs m 107 1,037 873.0
Total Liabilities Rs m 59,606 70,147 17.7
 
Current assets Rs m 40,499 47,726 17.8
Fixed Assets Rs m 19,107 22,421 17.3
Total Assets Rs m 59,606 70,147 17.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



POLYCAB INDIA Cash Flow Statement Analysis

  • POLYCAB INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 12 billion, an improvement of 406.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -10 billion, an improvement of 285.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 656 million from the Rs -69 million net cash flows seen during FY20.

POLYCAB INDIA 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 2,443 12,382 406.8%
Cash Flow from Investing Activities Rs m -2,622 -10,121 -
Cash Flow from Financing Activities Rs m 110 -1,606 -
Net Cash Flow Rs m -69 656 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for POLYCAB INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.4, an improvement from the EPS of Rs 51.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,534.3, stands at 44.7 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 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.2 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 593.1 598.6
TTM Earnings per share Rs 51.9 59.4
Diluted earnings per share Rs 51.8 59.4
Price to Cash Flow x 40.4 35.2
TTM P/E ratio x 44.7 44.7
Price / Book Value ratio x 3.3 3.3
Market Cap Rs m 377,305 377,938
Dividends per share (Unadj.) Rs 7.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for POLYCAB INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 2.0x 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 21.0x during FY21, from 21.5x 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 18.8% during FY21, from 20.3% 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 23.2% during FY21, from 27.9% 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 13.4% during FY21, from 13.8% 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 2.0 2.4
Debtors’ Days Days 59 59
Interest coverage x 21.5 21.0
Debt to equity ratio x 0.0 0.0
Return on assets % 13.8 13.4
Return on equity % 20.3 18.8
Return on capital employed % 27.9 23.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how POLYCAB INDIA has performed over the last 5 years, please visit here.

POLYCAB INDIA Share Price Performance

Over the last one year, POLYCAB INDIA share price has moved up from Rs 805.9 to Rs 2,534.3, registering a gain of Rs 1,728.5 or around 214.5%.

Overall, the S&P BSE SENSEX is up 52.4% over the year.

(To know more, check out historical annual results for POLYCAB INDIA and quarterly results for POLYCAB INDIA)

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