POLYCAB INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

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 8.8% in FY20 to 9.9% 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	%	8.8	9.9

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

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

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	-

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 1,380.2, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	51.7	59.3
Price to Cash Flow	x	11.9	14.4
TTM P/E ratio	x	14.3	23.8
Price / Book Value ratio	x	3.3	3.3
Market Cap	Rs m	126,923	154,196
Dividends per share (Unadj.)	Rs	7.0	10.0

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

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 741.9 to Rs 1,380.2, registering a gain of Rs 638.3 or around 86.0%.

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

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

Read: Latest Annual Report Analysis of POLYCAB INDIA