CROMPTON GREAVES CONSUMER ELEC. 2023-24 Annual Report Analysis

Tue, 18 Jun

CROMPTON GREAVES CONSUMER ELEC. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CROMPTON GREAVES CONSUMER ELEC. Income Statement Analysis

• Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 11.1% and finance costs decreased by 27.5% YoY, respectively.
• Other income grew by 0.9% YoY.
• Net profit for the year declined by 7.3% YoY.
• Net profit margins during the year declined from 6.9% in FY23 to 6.0% in FY24.

CROMPTON GREAVES CONSUMER ELEC. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	68,696	73,128	6.5%
Other income	Rs m	668	674	0.9%
Total Revenues	Rs m	69,364	73,802	6.4%
Gross profit	Rs m	7,705	7,137	-7.4%
Depreciation	Rs m	1,159	1,288	11.1%
Interest	Rs m	1,092	792	-27.5%
Profit before tax	Rs m	6,122	5,731	-6.4%
Tax	Rs m	1,358	1,313	-3.3%
Profit after tax	Rs m	4,764	4,418	-7.3%
Gross profit margin	%	11.2	9.8
Effective tax rate	%	22.2	22.9
Net profit margin	%	6.9	6.0

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CROMPTON GREAVES CONSUMER ELEC. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 17 billion in FY23, thereby witnessing an increase of 18.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 6 billion during FY23, a fall of 49.9%.
• Current assets rose 20% and stood at Rs 27 billion, while fixed assets fell 1% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 61 billion as against Rs 57 billion during FY23, thereby witnessing a growth of 8%.

CROMPTON GREAVES CONSUMER ELEC. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,196	29,238	16.0
Current Liabilities	Rs m	17,369	20,633	18.8
Long-term Debt	Rs m	5,972	2,990	-49.9
Total Liabilities	Rs m	56,544	60,817	7.6
Current assets	Rs m	22,583	27,038	19.7
Fixed Assets	Rs m	33,961	33,769	-0.6
Total Assets	Rs m	56,544	60,817	7.6

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement Analysis

• CROMPTON GREAVES CONSUMER ELEC.'s cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 52.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 952 million from the Rs -948 million net cash flows seen during FY23.

CROMPTON GREAVES CONSUMER ELEC. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	5,526	8,434	52.6%
Cash Flow from Investing Activities	Rs m	2,632	-2,069	-
Cash Flow from Financing Activities	Rs m	-9,105	-5,413	-
Net Cash Flow	Rs m	-948	952	-

Current Valuations for CROMPTON GREAVES CONSUMER ELEC.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an decline from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 434.9, stands at 63.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 32.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	108.0	113.7
TTM Earnings per share	Rs	7.5	6.9
Diluted earnings per share	Rs	7.4	6.9
Price to Cash Flow	x	31.8	32.6
TTM P/E ratio	x	39.6	63.3
Price / Book Value ratio	x	8.9	6.4
Market Cap	Rs m	224,833	186,196
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for CROMPTON GREAVES CONSUMER ELEC.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.3x during FY23. 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 8.2x during FY24, from 6.6x during FY23. 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 15.1% during FY24, from 18.9% during FY24. 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 20.2% during FY24, from 23.1% during FY23. 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 8.6% during FY24, from 10.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	4	4
Interest coverage	x	6.6	8.2
Debt to equity ratio	x	0.2	0.1
Return on assets	%	10.4	8.6
Return on equity	%	18.9	15.1
Return on capital employed	%	23.1	20.2

To see how CROMPTON GREAVES CONSUMER ELEC. has performed over the last 5 years, please visit here.

CROMPTON GREAVES CONSUMER ELEC. Share Price Performance

Over the last one year, CROMPTON GREAVES CONSUMER ELEC. share price has moved up from Rs 292.6 to Rs 434.9, registering a gain of Rs 142.4 or around 48.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,695.9 (up 0.3%). Over the last one year it has moved up from 42,891.9 to 59,695.9, a gain of 16,804 points (up 39.2%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for CROMPTON GREAVES CONSUMER ELEC. and quarterly results for CROMPTON GREAVES CONSUMER ELEC.)