Carrier AC Growth

The Revenue for the company in FY21 is INR 1218 Cr whereas in FY20 it was INR 1524 Cr, the company witnessed a decrease of 20% on y-o-y basis. This decline in the revenue is primarily due to the outburst of covid-19 pandemic and the consequent national lockdown. The first quarter of FY21 which remains a peak for Air-conditioning industry was totally washed out due to lockdown and volumes were significantly impacted. 

The Net Profit for the company in FY21 stood at INR 17 Cr which was INR 47 Cr in FY20. The company witnessed a decline of 65% in its net profit because of decrease in revenue of the company due to covid-19 and subsequent lockdowns. Another reason for the respective decline due to current market demand and foreign exchange deterioration post market opening. Due to company's implementation of cost rationalization measures it was still able to cover some of the losses due to lower volumes and managed to end the year in profits.

The EPS of the company in FY21 stands at INR 1.6, it has been declining since FY18, it has declined at a rate of 37% CAGR over 3 years primarily due to the decrease in the revenue and net profit of the company. The company has not issued any new equity but still because of decrease in net profits of the company due to covid 19 and subsequent lockdowns there was a decline in EPS of the company.

The Book Value per Share of the company is declining since FY17 this is because there was a continuous decline in reserve and surplus of the company as the company declared a dividend of 27.2 per share in FY19 despite of having an EPS of 6.4 in FY19, this excess dividend was paid out of the reserve and surplus account of the company.

The Operating Profit for the company declined from INR 97 Cr in FY20 to INR 44 Cr in FY21, it decreased by 54% annually primarily due to decrease in revenue of the company due to covid 19 and subsequent lockdowns, the sales volumes of the company was heavily impacted during Q1 of the FY21.

Since FY19, the company's assets have been shrinking at a rate of 13% CAGR, going from INR 1028 Cr. in FY19 to INR 778 Cr. in FY21, owing mostly to a reduction in cash and cash equivalents. Because the company was unable to produce cash from sales in FY21 and FY20 due to Covid 19 and nationwide lockdown, the company had to use previously available funds for its operations and working capital requirements.

The company's cash flow from operations in FY21 was INR 135Cr, up 132% from FY20, owing to a rise in trade payables as the company made a large amount of its purchases on credit.