Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HONDA POWER PRODUCTS 2020-21 Annual Report Analysis
Wed, 31 Mar

HONDA POWER PRODUCTS 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.

HONDA POWER PRODUCTS Income Statement Analysis

  • Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY21 as against 11.5% in FY20.
  • Depreciation charges decreased by 8.2% and finance costs decreased by 5.6% YoY, respectively.
  • Other income declined by 7.8% YoY.
  • Net profit for the year declined by 26.8% YoY.
  • Net profit margins during the year declined from 7.8% in FY20 to 5.2% in FY21.

HONDA POWER PRODUCTS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 8,486 9,389 10.6%
Other income Rs m 158 145 -7.8%
Total Revenues Rs m 8,644 9,535 10.3%
Gross profit Rs m 975 725 -25.6%
Depreciation Rs m 221 203 -8.2%
Interest Rs m 7 7 -5.6%
Profit before tax Rs m 904 661 -26.9%
Tax Rs m 239 175 -26.9%
Profit after tax Rs m 665 487 -26.8%
Gross profit margin % 11.5 7.7
Effective tax rate % 26.4 26.4
Net profit margin % 7.8 5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

HONDA POWER PRODUCTS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 27.3%.
  • Current assets rose 8% and stood at Rs 6 billion, while fixed assets rose 21% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 11%.

HONDA POWER PRODUCTS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,696 6,055 6.3
 
Current Liabilities Rs m 1,441 1,834 27.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,100 7,848 10.5
 
Current assets Rs m 5,564 5,989 7.7
Fixed Assets Rs m 1,536 1,859 21.0
Total Assets Rs m 7,100 7,848 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HONDA POWER PRODUCTS Cash Flow Statement Analysis

  • HONDA POWER PRODUCTS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -925 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -136 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 456 million from the Rs 167 million net cash flows seen during FY20.

HONDA POWER PRODUCTS 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 -176 1,515 -
Cash Flow from Investing Activities Rs m 472 -925 -
Cash Flow from Financing Activities Rs m -131 -136 -
Net Cash Flow Rs m 167 456 173.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HONDA POWER PRODUCTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.0, an decline from the EPS of Rs 65.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 958.1, stands at 20.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.0 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 836.9 926.0
TTM Earnings per share Rs 65.6 48.0
Diluted earnings per share Rs 65.6 48.0
Price to Cash Flow x 9.6 14.4
TTM P/E ratio x 12.7 20.0
Price / Book Value ratio x 1.8 1.6
Market Cap Rs m 10,455 9,938
Dividends per share (Unadj.) Rs 12.5 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HONDA POWER PRODUCTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY21, from 3.9x 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 99.7x during FY21, from 128.4x 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 declined and down at 8.0% during FY21, from 11.7% 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 11.0% during FY21, from 16.0% 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 6.3% during FY21, from 9.5% 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 3.9 3.3
Debtors’ Days Days 213 320
Interest coverage x 128.4 99.7
Debt to equity ratio x 0.0 0.0
Return on assets % 9.5 6.3
Return on equity % 11.7 8.0
Return on capital employed % 16.0 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how HONDA POWER PRODUCTS has performed over the last 5 years, please visit here.

HONDA POWER PRODUCTS Share Price Performance

Over the last one year, HONDA POWER PRODUCTS share price has moved up from Rs 835.2 to Rs 958.1, registering a gain of Rs 123.0 or around 14.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for HONDA POWER PRODUCTS and quarterly results for HONDA POWER PRODUCTS)

Annual Report FAQs

What is the current share price of HONDA POWER PRODUCTS?

HONDA POWER PRODUCTS currently trades at Rs 2,471.4 per share. You can check out the latest share price performance of HONDA POWER PRODUCTS here...

What was the revenue of HONDA POWER PRODUCTS in FY21? How does it compare to earlier years?

The revenues of HONDA POWER PRODUCTS stood at Rs 9,535 m in FY21, which was up 10.3% compared to Rs 8,644 m reported in FY20.

HONDA POWER PRODUCTS' revenue has grown from Rs 6,835 m in FY17 to Rs 9,535 m in FY21.

Over the past 5 years, the revenue of HONDA POWER PRODUCTS has grown at a CAGR of 8.7%.

What was the net profit of HONDA POWER PRODUCTS in FY21? How does it compare to earlier years?

The net profit of HONDA POWER PRODUCTS stood at Rs 487 m in FY21, which was down -26.8% compared to Rs 665 m reported in FY20.

This compares to a net profit of Rs 542 m in FY19 and a net profit of Rs 614 m in FY18.

Over the past 5 years, HONDA POWER PRODUCTS net profit has grown at a CAGR of -4.2%.

What does the cash flow statement of HONDA POWER PRODUCTS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HONDA POWER PRODUCTS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 1,515 m as compared to Rs -176 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -925 m as compared to Rs 472 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -136 m as compared to Rs -131 m in FY20.

Here's the cash flow statement of HONDA POWER PRODUCTS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations399550206-1761,515
From Investments-134-654-126472-925
From Financial Activity-77-94-111-131-136
Net Cashflow183-199-32167456

What does the Key Ratio analysis of HONDA POWER PRODUCTS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HONDA POWER PRODUCTS reveals:

  • Operating profit margins witnessed a fall and stood at 7.7% in FY21 as against 11.5% in FY20.
  • Net profit margins declined from 7.8% in FY20 to 5.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of HONDA POWER PRODUCTS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.413.510.711.57.7
Net Profit Margin (%)8.78.16.67.85.2
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of HONDA POWER PRODUCTS

Equitymaster requests your view! Post a comment on "HONDA POWER PRODUCTS 2020-21 Annual Report Analysis". Click here!