TRIDENT 2020-21 Annual Report Analysis

Wed, 31 Mar

TRIDENT 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.

TRIDENT Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.2% in FY21 as against 17.5% in FY20.
• Depreciation charges increased by 0.9% and finance costs decreased by 35.0% YoY, respectively.
• Other income declined by 32.8% YoY.
• Net profit for the year declined by 11.5% YoY.
• Net profit margins during the year declined from 7.3% in FY20 to 6.7% in FY21.

TRIDENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	47,277	45,306	-4.2%
Other income	Rs m	397	267	-32.8%
Total Revenues	Rs m	47,674	45,573	-4.4%
Gross profit	Rs m	8,295	7,801	-5.9%
Depreciation	Rs m	3,337	3,369	0.9%
Interest	Rs m	1,109	721	-35.0%
Profit before tax	Rs m	4,246	3,979	-6.3%
Tax	Rs m	813	941	15.6%
Profit after tax	Rs m	3,433	3,038	-11.5%
Gross profit margin	%	17.5	17.2
Effective tax rate	%	19.2	23.6
Net profit margin	%	7.3	6.7

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TRIDENT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 18 billion as compared to Rs 17 billion in FY20, thereby witnessing an increase of 8.6%.
• Long-term debt down at Rs 3 billion as compared to Rs 7 billion during FY20, a fall of 63.0%.
• Current assets rose 5% and stood at Rs 18 billion, while fixed assets fell 2% and stood at Rs 39 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 58 billion as against Rs 58 billion during FY20, thereby witnessing a fall of 0%.

TRIDENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	30,214	33,283	10.2
Current Liabilities	Rs m	16,970	18,425	8.6
Long-term Debt	Rs m	6,891	2,551	-63.0
Total Liabilities	Rs m	57,765	57,717	-0.1
Current assets	Rs m	17,519	18,321	4.6
Fixed Assets	Rs m	40,246	39,396	-2.1
Total Assets	Rs m	57,765	57,717	-0.1

TRIDENT Cash Flow Statement Analysis

• TRIDENT's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 263.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs 3 billion net cash flows seen during FY20.

TRIDENT 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	12,137	5,049	-58.4%
Cash Flow from Investing Activities	Rs m	-427	-1,549	-
Cash Flow from Financing Activities	Rs m	-8,624	-5,702	-
Net Cash Flow	Rs m	3,088	-2,202	-

Current Valuations for TRIDENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14.1, stands at 23.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	9.5	8.9
TTM Earnings per share	Rs	0.7	0.6
Diluted earnings per share	Rs	0.7	0.6
Price to Cash Flow	x	3.2	8.4
TTM P/E ratio	x	6.3	23.6
Price / Book Value ratio	x	6.4	1.6
Market Cap	Rs m	193,076	53,609
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for TRIDENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 improved and stood at 6.5x during FY21, from 4.8x 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 9.1% during FY21, from 11.4% 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 13.1% during FY21, from 14.4% 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 6.5% during FY21, from 7.9% 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	1.0
Debtors’ Days	Days	21	36
Interest coverage	x	4.8	6.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.9	6.5
Return on equity	%	11.4	9.1
Return on capital employed	%	14.4	13.1

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

TRIDENT Share Price Performance

Over the last one year, TRIDENT share price has moved up from Rs 4.3 to Rs 14.1, registering a gain of Rs 9.8 or around 230.6%.

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

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

Read: Latest Annual Report Analysis of TRIDENT