PRECISION CAMSHAFTS 2020-21 Annual Report Analysis

Wed, 31 Mar

PRECISION CAMSHAFTS 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.

PRECISION CAMSHAFTS Income Statement Analysis

• Operating income during the year fell 5.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY21 as against 14.7% in FY20.
• Depreciation charges decreased by 8.2% and finance costs decreased by 15.9% YoY, respectively.
• Other income grew by 20.8% YoY.
• Net profit for the year declined by 103.0% YoY.
• Net profit margins during the year declined from 3.4% in FY20 to 0.1% in FY21.

PRECISION CAMSHAFTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,462	7,090	-5.0%
Other income	Rs m	214	259	20.8%
Total Revenues	Rs m	7,677	7,349	-4.3%
Gross profit	Rs m	1,096	765	-30.2%
Depreciation	Rs m	864	793	-8.2%
Interest	Rs m	91	76	-15.9%
Profit before tax	Rs m	356	155	-56.5%
Tax	Rs m	99	163	63.6%
Profit after tax	Rs m	256	-8	-103.0%
Gross profit margin	%	14.7	10.8
Effective tax rate	%	27.9	105.0
Net profit margin	%	3.4	-0.1

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PRECISION CAMSHAFTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 33.8%.
• Long-term debt down at Rs 802 million as compared to Rs 2 billion during FY20, a fall of 47.1%.
• Current assets rose 6% and stood at Rs 6 billion, while fixed assets fell 9% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 10 billion during FY20, thereby witnessing a fall of 1%.

PRECISION CAMSHAFTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,179	6,426	4.0
Current Liabilities	Rs m	1,940	2,597	33.8
Long-term Debt	Rs m	1,517	802	-47.1
Total Liabilities	Rs m	10,315	10,201	-1.1
Current assets	Rs m	5,404	5,734	6.1
Fixed Assets	Rs m	4,911	4,466	-9.1
Total Assets	Rs m	10,315	10,201	-1.1

PRECISION CAMSHAFTS Cash Flow Statement Analysis

• PRECISION CAMSHAFTS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 108.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -887 million, an improvement of 50.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -355 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -17 million from the Rs 42 million net cash flows seen during FY20.

PRECISION CAMSHAFTS 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	575	1,199	108.5%
Cash Flow from Investing Activities	Rs m	-589	-887	-
Cash Flow from Financing Activities	Rs m	33	-355	-
Net Cash Flow	Rs m	42	-17	-

Current Valuations for PRECISION CAMSHAFTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.8, stands at -485.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	78.6	74.6
TTM Earnings per share	Rs	2.7	-0.1
Diluted earnings per share	Rs	2.7	-0.1
Price to Cash Flow	x	2.1	4.5
TTM P/E ratio	x	9.1	-485.9
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	4,213	3,543
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for PRECISION CAMSHAFTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY21, from 2.8x 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 deteriorated and stood at 3.0x during FY21, from 4.9x 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 -0.1% during FY21, from 4.1% 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 3.2% during FY21, from 5.8% 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 0.7% during FY21, from 3.4% 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	2.8	2.2
Debtors’ Days	Days	841	794
Interest coverage	x	4.9	3.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	3.4	0.7
Return on equity	%	4.1	-0.1
Return on capital employed	%	5.8	3.2

To see how PRECISION CAMSHAFTS has performed over the last 5 years, please visit here.

PRECISION CAMSHAFTS Share Price Performance

Over the last one year, PRECISION CAMSHAFTS share price has moved up from Rs 25.0 to Rs 39.8, registering a gain of Rs 14.8 or around 59.2%.

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

(To know more, check out historical annual results for PRECISION CAMSHAFTS and quarterly results for PRECISION CAMSHAFTS)

Read: Latest Annual Report Analysis of PRECISION CAMSHAFTS