REDINGTON 2020-21 Annual Report Analysis

Wed, 31 Mar

REDINGTON 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.

REDINGTON Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.4% in FY21 as against 2.1% in FY20.
• Depreciation charges decreased by 4.6% and finance costs decreased by 29.1% YoY, respectively.
• Other income grew by 96.9% YoY.
• Net profit for the year grew by 47.3% YoY.
• Net profit margins during the year grew from 1.0% in FY20 to 1.4% in FY21.

REDINGTON Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	514,652	569,459	10.6%
Other income	Rs m	486	957	96.9%
Total Revenues	Rs m	515,138	570,416	10.7%
Gross profit	Rs m	10,878	13,854	27.4%
Depreciation	Rs m	1,554	1,482	-4.6%
Interest	Rs m	2,887	2,048	-29.1%
Profit before tax	Rs m	6,923	11,281	63.0%
Tax	Rs m	1,584	3,415	115.7%
Profit after tax	Rs m	5,339	7,866	47.3%
Gross profit margin	%	2.1	2.4
Effective tax rate	%	22.9	30.3
Net profit margin	%	1.0	1.4

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REDINGTON Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 93 billion as compared to Rs 98 billion in FY20, thereby witnessing an decrease of -4.8%.
• Long-term debt stood at Rs 46 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 2% and stood at Rs 140 billion, while fixed assets fell 15% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 148 billion as against Rs 147 billion during FY20, thereby witnessing a growth of 1%.

REDINGTON Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	43,089	49,337	14.5
Current Liabilities	Rs m	97,520	92,817	-4.8
Long-term Debt	Rs m	0	46	0.0
Total Liabilities	Rs m	147,114	148,263	0.8
Current assets	Rs m	137,342	139,980	1.9
Fixed Assets	Rs m	9,772	8,283	-15.2
Total Assets	Rs m	147,114	148,263	0.8

REDINGTON Cash Flow Statement Analysis

• REDINGTON's cash flow from operating activities (CFO) during FY21 stood at Rs 35 billion, an improvement of 262.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 763.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -22 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 billion from the Rs 15 billion net cash flows seen during FY20.

REDINGTON 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	9,657	34,969	262.1%
Cash Flow from Investing Activities	Rs m	-575	-4,968	-
Cash Flow from Financing Activities	Rs m	4,433	-22,411	-
Net Cash Flow	Rs m	14,632	6,460	-55.9%

Current Valuations for REDINGTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.2, an improvement from the EPS of Rs 13.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 190.7, stands at 18.9 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 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	1,322.7	1,463.1
TTM Earnings per share	Rs	13.7	20.2
Diluted earnings per share	Rs	6.8	10.1
Price to Cash Flow	x	7.7	5.6
TTM P/E ratio	x	10.0	18.9
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	38,880	52,000
Dividends per share (Unadj.)	Rs	4.3	11.6

Ratio Analysis for REDINGTON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.4x 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 6.5x during FY21, from 3.4x 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 15.9% during FY21, from 12.4% 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 27.0% during FY21, from 22.8% 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 improved and stood at 6.7% during FY21, from 5.6% 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	1.4	1.5
Debtors’ Days	Days	5	4
Interest coverage	x	3.4	6.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.6	6.7
Return on equity	%	12.4	15.9
Return on capital employed	%	22.8	27.0

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

REDINGTON Share Price Performance

Over the last one year, REDINGTON share price has moved up from Rs 68.1 to Rs 190.7, registering a gain of Rs 122.7 or around 180.2%.

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

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

Read: Latest Annual Report Analysis of REDINGTON