CENTURY TEXTILES 2020-21 Annual Report Analysis
Wed, 31 Mar

CENTURY TEXTILES 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.

CENTURY TEXTILES Income Statement Analysis

  • Operating income during the year fell 23.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 63.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY21 as against 15.7% in FY20.
  • Depreciation charges increased by 1.1% and finance costs decreased by 18.8% YoY, respectively.
  • Other income grew by 75.0% YoY.
  • Net profit for the year declined by 109.3% YoY.
  • Net profit margins during the year declined from 10.5% in FY20 to 1.3% in FY21.

CENTURY TEXTILES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 34,290 26,166 -23.7%
Other income Rs m 352 616 75.0%
Total Revenues Rs m 34,642 26,782 -22.7%
Gross profit Rs m 5,377 1,952 -63.7%
Depreciation Rs m 2,286 2,311 1.1%
Interest Rs m 871 707 -18.8%
Profit before tax Rs m 2,573 -450 -117.5%
Tax Rs m -1,032 -114 -89.0%
Profit after tax Rs m 3,604 -336 -109.3%
Gross profit margin % 15.7 7.5
Effective tax rate % -40.1 25.3
Net profit margin % 10.5 -1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CENTURY TEXTILES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 19 billion in FY20, thereby witnessing an decrease of -20.7%.
  • Long-term debt stood at Rs 9 billion as compared to Rs 5 billion during FY20, a growth of 57.3%.
  • Current assets rose 11% and stood at Rs 20 billion, while fixed assets fell 5% and stood at Rs 46 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 66 billion as against Rs 67 billion during FY20, thereby witnessing a fall of 1%.

CENTURY TEXTILES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 34,795 35,044 0.7
 
Current Liabilities Rs m 18,815 14,911 -20.7
Long-term Debt Rs m 5,499 8,650 57.3
Total Liabilities Rs m 66,829 66,380 -0.7
 
Current assets Rs m 18,040 19,984 10.8
Fixed Assets Rs m 48,789 46,396 -4.9
Total Assets Rs m 66,829 66,380 -0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CENTURY TEXTILES Cash Flow Statement Analysis

  • CENTURY TEXTILES's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -916 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 39 million from the Rs 1 billion net cash flows seen during FY20.

CENTURY TEXTILES 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 -228 5,664 -
Cash Flow from Investing Activities Rs m -2,410 -916 -
Cash Flow from Financing Activities Rs m 3,916 -4,709 -
Net Cash Flow Rs m 1,278 39 -96.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CENTURY TEXTILES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.0, an decline from the EPS of Rs 32.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 464.7, stands at -344.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.7 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 307.0 234.2
TTM Earnings per share Rs 32.3 -3.0
Diluted earnings per share Rs 32.3 -3.0
Price to Cash Flow x 5.6 22.7
TTM P/E ratio x 8.8 -344.4
Price / Book Value ratio x 2.1 1.3
Market Cap Rs m 71,857 44,871
Dividends per share (Unadj.) Rs 3.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CENTURY TEXTILES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.0x 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 0.4x during FY21, from 4.0x 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 -1.0% during FY21, from 10.4% 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 declined and down at 0.6% during FY21, from 8.5% 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 0.6% during FY21, from 6.7% 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 1.0 1.3
Debtors’ Days Days 2 2
Interest coverage x 4.0 0.4
Debt to equity ratio x 0.2 0.2
Return on assets % 6.7 0.6
Return on equity % 10.4 -1.0
Return on capital employed % 8.5 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

CENTURY TEXTILES Share Price Performance

Over the last one year, CENTURY TEXTILES share price has moved up from Rs 295.8 to Rs 464.7, registering a gain of Rs 168.9 or around 57.1%.

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

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

Annual Report FAQs

What is the current share price of CENTURY TEXTILES?

CENTURY TEXTILES currently trades at Rs 806.7 per share. You can check out the latest share price performance of CENTURY TEXTILES here...

What was the revenue of CENTURY TEXTILES in FY21? How does it compare to earlier years?

The revenues of CENTURY TEXTILES stood at Rs 26,782 m in FY21, which was down -22.7% compared to Rs 34,642 m reported in FY20.

CENTURY TEXTILES' revenue has fallen from Rs 72,232 m in FY17 to Rs 26,782 m in FY21.

Over the past 5 years, the revenue of CENTURY TEXTILES has grown at a CAGR of -22.0%.

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

The net loss of CENTURY TEXTILES stood at Rs -336 m in FY21, which was down -109.3% compared to Rs 3,604 m reported in FY20.

This compares to a net profit of Rs 60,632 m in FY19 and a net profit of Rs 3,717 m in FY18.

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

What does the cash flow statement of CENTURY TEXTILES 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 CENTURY TEXTILES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 5,664 m as compared to Rs -228 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -916 m as compared to Rs -2,410 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -4,709 m as compared to Rs 3,916 m in FY20.

Here's the cash flow statement of CENTURY TEXTILES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations9,40022,0915,477-2285,664
From Investments-2,470-1,949-1,229-2,410-916
From Financial Activity-1,752-17,952-6,7733,916-4,709
Net Cashflow5,1792,190-2,5251,27839

What does the Key Ratio analysis of CENTURY TEXTILES 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 CENTURY TEXTILES reveals:

  • Operating profit margins witnessed a fall and stood at 7.5% in FY21 as against 15.7% in FY20.
  • Net profit margins declined from 10.5% in FY20 to 1.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of CENTURY TEXTILES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)12.611.3164.815.77.5
Net Profit Margin (%)1.54.4153.710.5-1.3
Debt to Equity Ratio (x)1.30.90.20.20.2