REDINGTON 2020-21 Annual Report Analysis

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REDINGTON 2020-21 Annual Report Analysis
Mon, 25 Oct

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 145.3, stands at 6.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.0 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 13.7 20.2
Price to Cash Flow x 8.2 6.0
TTM P/E ratio x 6.1 6.1
Price / Book Value ratio x 0.9 1.1
Market Cap Rs m 56,534 56,554
Dividends per share (Unadj.) Rs 4.3 11.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 63.9 to Rs 145.3, registering a gain of Rs 81.4 or around 127.4%.

Overall, the S&P BSE SENSEX is up 49.8% over the year.

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

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