RATING

RECOMMENDATION

Neutral

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RATING

RECOMMENDATION

Neutral

Business Type

Fairly Valued

RATING

RECOMMENDATION

Neutral

Business Type

Fairly Valued

  • Eaton Fluid Growth

Get detailed information about the Eaton Fluid Share Price. In this research report, you will get to know about Eaton Fluid Peers data. In addition, get the complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Eaton Fluid Revenue Growth

Growth in %

  • -2.06%

    1 Year

  • -10.26%

    2 Year

  • 1.55%

    3 Year

The company reported revenue from operations of INR 365Cr, a decline of 3% over previous year. The decline in revenue is mainly attributable to pandemic and travel restrictions, predominantly in Q1 of the financial year, on end markets and economy at large. The revenue reported from operations by the company in FY19 was INR 455Cr, growth of 29.6% over FY18, where the increase was primarily attributable to capacity expansion, new products, improved market share through sustained penetration strategy and localization.

Eaton Fluid Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • 11.52%

    2 Year

  • -6.97%

    3 Year

The company's net profit increased by INR 25Cr to INR 15Cr in FY21, owing to the absence of a transitory loss due to tax reversal in FY21, as it was in FY20. The company's net profit in FY20 declined to a loss of INR 10Cr from a profit of INR 12Cr in FY19 due to foreign exchange movements and a greater tax expense than last year as the company in FY20 deferred INR 6.3Cr in deferred tax assets and reversed INR 4.7Cr in MAT (Minimum Alternate Tax) credit claim, resulting in the tax expense.

Eaton Fluid EPS Growth

Growth in %

  • NA

    1 Year

  • 11.54%

    2 Year

  • -7.02%

    3 Year

In FY20 the EPS of the company was -10.2 whereas in FY19 and FY21 the EPS of the company was 11.7 and 14.5 respectively. The EPS for the company in FY20 decreased significantly because of adverse impact of foreign exchange fluctuation and a larger tax expense in FY20 as the company derecognized deferred tax assets and reversed MAT(Minimum Alternate Tax) credit entitlement, these factors led to a decrease in Net Profit for the company and hence the EPS of the company decreased.

  • Eaton Fluid Book Value Growth

Growth in %

  • 4.67%

    1 Year

  • 2.04%

    2 Year

  • 6.15%

    3 Year

The Book Value of the company has remained constant over the last four years as the company haven't issued new equity shares and there wasn't much change in reserve and surplus of the company as it wasn't able to generate good amount of Net Profits.

Eaton Fluid EBITDA Growth

Growth in %

  • 75.22%

    1 Year

  • -1.20%

    2 Year

  • 0.44%

    3 Year


Eaton Fluid Operating Profit Growth

Growth in %

  • 120.57%

    1 Year

  • -5.52%

    2 Year

  • -3.41%

    3 Year

The operating profit of the company was constant in the range of INR 25-30Cr, it was only in in FY20 that the operating profit for the company decreased to INR 12Cr, this was primarily due to the impact of derecognition of deferred tax assets and reversal of MAT credit entitlement.

Eaton Fluid Asset Growth

Growth in %

  • 0.64%

    1 Year

  • -8.56%

    2 Year

  • -1.41%

    3 Year

The company's Total Assets increased by 14.0% in FY19, to INR 310 crore in FY18. This was due to the company's focus in FY19 on increasing revenue from operations, and in order to do so, the company made credit sales to its customers, resulting in an increase in the company's trade receivables account, which in turn led to an increase in the company's Total Assets. Because the old receivables were settled down and the company's sales were impacted by Covid 19, the company's Total Assets returned to the old levels in FY20 and FY21.

Eaton Fluid Cash Flow from Operations

Growth in %

  • -69.47%

    1 Year

  • -40.21%

    2 Year

  • -36.10%

    3 Year

The Cash Flow from Operations reported by the company in FY21 is INR 6Cr which has declined by 70% from FY20, this decline in cash flow from the operations by the company was primarily due to the impact of covid-19 on the business of the company predominantly in Q1 of the FY21.

  • Eaton Fluid Solvency Ratios

Eaton Fluid D/E Ratio

The Debt to Equity ratio for the company in FY21 stands at 2.4 and it has been moving around 2.5 since last three years, this signifies that the company has high level risk of solvency. This high debt is because of the promissory note executed with Eaton Technologies Private Limited for the term of one year which are being renewed and rolled over for the next year on annual basis. The terms of the promissory notes are amended and the entire loan (including interest) is payable to Eaton Technologies Private Limited by February 28, 2022 at an interest rate of 7% p.a. The company has obtained a parent support letter from Danfoss Industries Private Limited (holding company of Danfoss Fluid Power Private Limited) for the purpose of repayment of such loan to ETPL. The purpose of this debt is to meet company's working capital requirements.

Eaton Fluid Current Ratio

Eaton Fluid Quick Ratio

Eaton Fluid Interest Coverage Ratio

The interest coverage ratio of the company for FY21 is 3.33 which has improved significantly from the FY20 when the ratio was 1.25, this is because in FY20 the earnings for the company decreased drastically and then in FY21 the company was able to bring its earnings back on track.

  • Eaton Fluid Operating Efficiency

Due to a one time tax reversal transaction done by the company and due to degrowth in end markets the operational efficiency of the company was declined, but in FY21 it came back to the previous levels of FY19 and FY18.

Eaton Fluid Operating Profit EBIT Margin(OPM)

Eaton Fluid Profit Before Tax Margin (PBT Margin)

Eaton Fluid Profit After Tax Margin (PAT Margin)

  • Eaton Fluid Profitablity Ratio

Eaton Fluid Return on Equity(RoE)

The Net Income of the company was decreased in FY20 due to a tax reversal transaction on derecognition of deferred tax assets because of which the Return on Equity was decreased drastically in FY20 to the levels of -26.02, it again came back to 35.39 in FY21 as the impact of tax reversal was not present in FY21. 

Eaton Fluid Return on Capital Employed(RoCE)

The company's return on capital employed (ROCE) fell to 28.02% in FY20 due to a tax reversal entry made by the company; however, the ROCE climbed back to 61.28% in FY21 as the company's profits recovered to previous levels.

Eaton Fluid Return to Assets (RoA)

The company's return on assets was reduced to -3.61 in FY20, primarily because the company's net profit was reduced due to a temporary tax reversal entry made by the company. The company's assets were also reduced in FY20 and FY21, as there was a decrease in accounts of trade receivables of the company as they were settled down.

  • Eaton Fluid Valuation Ratios

Eaton Fluid Earning Yield