RATING

RECOMMENDATION

Strong Sell

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

  • MILTON CYCLE INDUSTRIES Growth

MILTON CYCLE INDUSTRIES Revenue Growth

Growth in %

  • -77.42%

    1 Year

  • -42.89%

    3 Year

  • -34.18%

    4 Year

The company's total revenue has shown a de-growth of 77% in FY21 from FY20, on account of a fall in revenue from operations, which showed a de-growth of 79%. On the other hand, other income of the company has witnessed a downfall of 62% in FY21 from FY20. It must be noted that profit on  sales of fixed assets is the major reason for the downfall in other income as the profit on sales of fixed assets were worth Rs. 7 Cr. in FY20 against Rs. 2 Cr. in FY21. The fall in the revenue of the company in FY21 was mainly due to industry factors. In FY21, the reasons for decline in sales were due to frequent lockdowns, hike in steel prices and limited institutional (government) tenders. In addition, component shortage also hit the sales. 

MILTON CYCLE INDUSTRIES Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

The company's net profit has shown a de-growth of -141.49% in FY21 from FY20, on account of a fall in revenue, which showed a de-growth of 77.42%. Net income stood at a loss of Rs. 102.54 lakhs in FY21, compared with Rs. 247.19 lakhs in FY20. The primary reason for the decrease in net profit is because of fall in the total revenue of the company whereas the employee benefit expenses of the company fell by 40.99%, which accounted for the major expense of the company. It must be noted that adjusted net profit (deducting non-recurring profit on sales of fixed assets in other income) stood at a negative Rs. 300 Lakhs in FY21.

MILTON CYCLE INDUSTRIES EPS Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

There has been a decrease in the earnings per share of the company, led by a decrease in net profits in FY21. The EPS of the company reduced by 141.50% in FY21 from FY20. There were also no changes made to the equity structure of the company. Adjusted EPS of the company (deducting non-recurring sales of fixed assets in other income) stood at a negative Rs. -71 in FY20.

  • MILTON CYCLE INDUSTRIES Book Value Growth

Growth in %

  • 5.43%

    1 Year

  • 9.13%

    2 Year

  • 7.88%

    3 Year

Book value per share of the company has increased by 5.4% in FY21, when compared with FY20 even when the total equity of the company reduced by 7% as the company's retained earnings were reduced due to loss in FY21. The increase in the book value of the company is mainly because of the average effect as the company had a higher book value in FY20.  The company retained earnings were reduced by 10% in FY21. Also, there were no other changes made in the equity and reserves of the company.

MILTON CYCLE INDUSTRIES EBITDA Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

The company's EBITDA in FY21 was reduced by -111.23% over FY20. The reason for such de-growth is fall in revenue of the company and thus profit of the company. It must be noted that even though the company has decreased its EBITDA, revenue per unit of expenses has still gone down by 47.21% in FY21 from FY20. Adjusted EBITDA of the company (deducting non-recurring sales of fixed assets in other income) stood at a negative Rs. 248 lakhs in FY21.

MILTON CYCLE INDUSTRIES Operating Profit Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

In FY21, the company made additions to its fixed assets, but there were more deletions of fixed assets, which reduced the total fixed assets of the company. That amounted to lower depreciation in FY21 compared with FY20. This amounts to Rs. 74.6 lakhs worth of depreciation over Rs. 85 lakhs in FY20. However, the EBIT of the company reduced by -133.81% in FY21 because of the negative EBIDTA. Although, adjusted EBIT of the company (deducting non-recurring sales of fixed assets in other income) stood at a negative Rs. -323 lakhs in FY21.

MILTON CYCLE INDUSTRIES Asset Growth

Growth in %

  • -31.42%

    1 Year

  • -6.23%

    2 Year

  • -0.97%

    4 Year

Total assets of the Milton Cycle Industries were reduced by 31% in FY21 over FY20. This has been brought about by de-growth in the current assets of 36% in FY21 over FY20. Current assets account for 79.45% of the total assets. On the other hand, non-current assets of the company showed a de-growth of 3% in FY21 over FY20. Receivables reduced by 45% whereas the inventory reduced by 57%. The tangible assets such as land, building, plant and machinery reduced net by 13%. 

MILTON CYCLE INDUSTRIES Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    2 Year

  • NA

    4 Year

In comparison to FY20, cash flow from operations has increased by approximately Rs. 10 Cr. in FY21. This is due to the decrease in company's  inventory and trade receivables and increase in company's trade payables, and other current assets. Inventory and receivables decreased due to decrease in company's operating activities.

  • MILTON CYCLE INDUSTRIES Solvency Ratios

MILTON CYCLE INDUSTRIES D/E Ratio

Overall debt to equity stance of the company improved in FY21 over FY20, which showed a de-growth of 52.27%. The current liabilities of the company were reduced by 40% in FY21. The company repaid all its short-term borrowings. There was a decrease in the company's equity by 7% due to loss during the FY21. However, the decrease in debt was relatively more than the decrease in equity which led to a fall in the company's debt to equity ratio in FY21.

MILTON CYCLE INDUSTRIES Current Ratio

Current assets accounted for 79.47% of the total assets of the company, which is mostly due to the high receivables of the company, worth Rs. 15.89 Cr. Current assets reduced by 36% in FY21 over FY20. Current liabilities, on the other hand, reduced by 40%, on account of an decrease in the short term borrowings,other current liabilities and account payables. Overall, taking into consideration of other current assets and other current liabilities, current liabilities reduced more than current assets, leading to an increase in the current ratio of the company. 

MILTON CYCLE INDUSTRIES Quick Ratio

Inventories constitute 10.97% of the overall current, which plays a significant role in the company. Despite the growth in quick ratio of 8% in FY21, which exceeds the growth in current ratio of 6.8%, taking inventories out of consideration led to a poor quick ratio of 1.

MILTON CYCLE INDUSTRIES Interest Coverage Ratio

Even though the company repaid all its short term borrowing and reduced the significant amount of trade payables, which further led to decrease in the interest expense of the company by 64.22%, the quick ratio off the company went from 5.7 in FY20 to negative 5.4 in FY21 as the company has incurred a loss of  Rs.103 lakhs in FY21. This led to fall in interest coverage ratio by 194.5%.  

  • MILTON CYCLE INDUSTRIES Operating Efficiency

The company's decline in sales were due to frequent lockdowns, hike in steel prices and limited institutional (government) tenders. In addition, component shortage also hit the sales. This led to decline in the operating efficiency of the company. It must be noted that adjusted operating margins of the company were considerably low when compared with non-adjusted operating efficiency margins. Adjusted EBIT, PBT and PAT margins were negative 16.77%, negative 17.99% and negative 15.55%, respectively, in FY21.

MILTON CYCLE INDUSTRIES Operating Profit EBIT Margin(OPM)

MILTON CYCLE INDUSTRIES Profit Before Tax Margin (PBT Margin)

MILTON CYCLE INDUSTRIES Profit After Tax Margin (PAT Margin)

  • MILTON CYCLE INDUSTRIES Profitablity Ratio

Overall profitable ratios have decreased, but adjusted ROE, ROCE and ROA have witnessed even a major downfall, which implies a significant reduction in the overall profitability position of the company by deducting non-recurring sales of fixed assets in other income in FY21. 

MILTON CYCLE INDUSTRIES Return on Equity(RoE)

ROE witnessed a decline at the rate of 139.4% in FY20 over the prior year. As per Dupont Analysis, this decline is primarily driven by abnormal decline in the net income margin of the company, which decreased by 296.1% due to a decrease in the net profits of the company. Asset turnover has also declined as the company's revenue decreased more than the assets of the company on account of the impact of the decrease in government purchases in the overall industry, hike in steel prices and frequent lockdowns. 

MILTON CYCLE INDUSTRIES Return on Capital Employed(RoCE)

The total capital employed by the company has shown a de-growth of 6.9% in FY21 over FY20, which was a result of a decrease in the overall equity of the company. Decline in ROCE of 132.1% is a result of an decrease in the net profits of the company. 

MILTON CYCLE INDUSTRIES Return to Assets (RoA)

ROA has also been shown to decrease by 143.8% in FY21 over FY20. This indicates that the company's assets were not allocated efficiently to improve sales. Even though the assets of the company reduced by 5.3%,still ROA of the company declined because of negative earnings in FY21. 

  • MILTON CYCLE INDUSTRIES Valuation Ratios

MILTON CYCLE INDUSTRIES Earning Yield