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UNIVERSAL CABLES 2020-21 Annual Report Analysis
Wed, 31 Mar

UNIVERSAL CABLES 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.

UNIVERSAL CABLES Income Statement Analysis

  • Operating income during the year fell 18.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 45.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY21 as against 10.6% in FY20.
  • Depreciation charges increased by 16.9% and finance costs decreased by 18.7% YoY, respectively.
  • Other income declined by 9.7% YoY.
  • Net profit for the year declined by 129.6% YoY.
  • Net profit margins during the year declined from 1.6% in FY20 to 0.6% in FY21.

UNIVERSAL CABLES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,690 12,807 -18.4%
Other income Rs m 149 135 -9.7%
Total Revenues Rs m 15,839 12,941 -18.3%
Gross profit Rs m 1,660 908 -45.3%
Depreciation Rs m 225 263 16.9%
Interest Rs m 773 628 -18.7%
Profit before tax Rs m 811 151 -81.4%
Tax Rs m 567 223 -60.6%
Profit after tax Rs m 244 -72 -129.6%
Gross profit margin % 10.6 7.1
Effective tax rate % 69.9 147.8
Net profit margin % 1.6 -0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

UNIVERSAL CABLES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 1.6%.
  • Long-term debt down at Rs 867 million as compared to Rs 1 billion during FY20, a fall of 24.9%.
  • Current assets fell 0% and stood at Rs 11 billion, while fixed assets rose 16% and stood at Rs 12 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 24 billion as against Rs 22 billion during FY20, thereby witnessing a growth of 8%.

UNIVERSAL CABLES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,902 11,357 14.7
 
Current Liabilities Rs m 8,790 8,930 1.6
Long-term Debt Rs m 1,154 867 -24.9
Total Liabilities Rs m 21,827 23,507 7.7
 
Current assets Rs m 11,346 11,304 -0.4
Fixed Assets Rs m 10,480 12,202 16.4
Total Assets Rs m 21,827 23,507 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



UNIVERSAL CABLES Cash Flow Statement Analysis

  • UNIVERSAL CABLES's cash flow from operating activities (CFO) during FY21 stood at Rs 897 million, an improvement of 137.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -160 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -719 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 18 million from the Rs -2 million net cash flows seen during FY20.

UNIVERSAL CABLES 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 377 897 137.8%
Cash Flow from Investing Activities Rs m -423 -160 -
Cash Flow from Financing Activities Rs m 44 -719 -
Net Cash Flow Rs m -2 18 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for UNIVERSAL CABLES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.1, an decline from the EPS of Rs 7.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 136.2, stands at -65.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.1 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 452.1 369.1
TTM Earnings per share Rs 7.0 -2.1
Diluted earnings per share Rs 7.0 -2.1
Price to Cash Flow x 6.0 23.1
TTM P/E ratio x 11.6 -65.4
Price / Book Value ratio x 0.5 0.4
Market Cap Rs m 5,445 4,418
Dividends per share (Unadj.) Rs 2.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for UNIVERSAL CABLES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY21, from 1.3x 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 1.2x during FY21, from 2.0x 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 -0.6% during FY21, from 2.5% 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 6.4% during FY21, from 14.3% 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 2.4% during FY21, from 4.7% 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 1.3 1.3
Debtors’ Days Days 1,867 2,289
Interest coverage x 2.0 1.2
Debt to equity ratio x 0.1 0.1
Return on assets % 4.7 2.4
Return on equity % 2.5 -0.6
Return on capital employed % 14.3 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

UNIVERSAL CABLES Share Price Performance

Over the last one year, UNIVERSAL CABLES share price has moved up from Rs 81.6 to Rs 136.2, registering a gain of Rs 54.6 or around 66.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

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

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

Annual Report FAQs

What is the current share price of UNIVERSAL CABLES?

UNIVERSAL CABLES currently trades at Rs 454.6 per share. You can check out the latest share price performance of UNIVERSAL CABLES here...

What was the revenue of UNIVERSAL CABLES in FY21? How does it compare to earlier years?

The revenues of UNIVERSAL CABLES stood at Rs 12,941 m in FY21, which was down -18.3% compared to Rs 15,839 m reported in FY20.

UNIVERSAL CABLES' revenue has grown from Rs 7,491 m in FY17 to Rs 12,941 m in FY21.

Over the past 5 years, the revenue of UNIVERSAL CABLES has grown at a CAGR of 14.6%.

What was the net profit of UNIVERSAL CABLES in FY21? How does it compare to earlier years?

The net loss of UNIVERSAL CABLES stood at Rs -72 m in FY21, which was down -129.6% compared to Rs 244 m reported in FY20.

This compares to a net profit of Rs 690 m in FY19 and a net profit of Rs 419 m in FY18.

Over the past 5 years, UNIVERSAL CABLES net profit has grown at a CAGR of NaN%.

What does the cash flow statement of UNIVERSAL CABLES 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 UNIVERSAL CABLES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 897 m as compared to Rs 377 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -160 m as compared to Rs -423 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -719 m as compared to Rs 44 m in FY20.

Here's the cash flow statement of UNIVERSAL CABLES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations703-416-591377897
From Investments-127-184-268-423-160
From Financial Activity-60861584544-719
Net Cashflow-3315-14-218

What does the Key Ratio analysis of UNIVERSAL CABLES 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 UNIVERSAL CABLES reveals:

  • Operating profit margins witnessed a fall and stood at 7.1% in FY21 as against 10.6% in FY20.
  • Net profit margins declined from 1.6% in FY20 to 0.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of UNIVERSAL CABLES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)10.29.312.310.67.1
Net Profit Margin (%)3.93.64.91.6-0.6
Debt to Equity Ratio (x)0.20.10.10.10.1

Read: Latest Annual Report Analysis of UNIVERSAL CABLES

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