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TRIDENT 2021-22 Annual Report Analysis

Thu, 30 Jun

TRIDENT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TRIDENT Income Statement Analysis

• Operating income during the year rose 54.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.2% in FY22 as against 17.2% in FY21.
• Depreciation charges decreased by 1.2% and finance costs increased by 19.6% YoY, respectively.
• Other income grew by 77.1% YoY.
• Net profit for the year grew by 174.2% YoY.
• Net profit margins during the year grew from 6.7% in FY21 to 11.9% in FY22.

TRIDENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	45,306	69,977	54.5%
Other income	Rs m	272	481	77.1%
Total Revenues	Rs m	45,578	70,457	54.6%
Gross profit	Rs m	7,797	14,868	90.7%
Depreciation	Rs m	3,369	3,328	-1.2%
Interest	Rs m	721	862	19.6%
Profit before tax	Rs m	3,979	11,159	180.5%
Tax	Rs m	941	2,827	200.6%
Profit after tax	Rs m	3,038	8,332	174.2%
Gross profit margin	%	17.2	21.2
Effective tax rate	%	23.6	25.3
Net profit margin	%	6.7	11.9

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TRIDENT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 20 billion as compared to Rs 18 billion in FY21, thereby witnessing an increase of 8.7%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY21, a growth of 21.4%.
• Current assets rose 39% and stood at Rs 25 billion, while fixed assets rose 0% and stood at Rs 39 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 65 billion as against Rs 58 billion during FY21, thereby witnessing a growth of 12%.

TRIDENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	33,283	38,447	15.5
Current Liabilities	Rs m	18,425	20,033	8.7
Long-term Debt	Rs m	2,551	3,097	21.4
Total Liabilities	Rs m	57,717	64,891	12.4
Current assets	Rs m	18,321	25,489	39.1
Fixed Assets	Rs m	39,396	39,402	0.0
Total Assets	Rs m	57,717	64,891	12.4

TRIDENT Cash Flow Statement Analysis

• TRIDENT's cash flow from operating activities (CFO) during FY22 stood at Rs 9 billion, an improvement of 78.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 121.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -2 billion net cash flows seen during FY21.

TRIDENT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	5,049	9,026	78.8%
Cash Flow from Investing Activities	Rs m	-1,549	-3,433	-
Cash Flow from Financing Activities	Rs m	-5,702	-3,869	-
Net Cash Flow	Rs m	-2,202	1,724	-

Current Valuations for TRIDENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.7, stands at 23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	8.9	13.7
TTM Earnings per share	Rs	0.6	1.6
Diluted earnings per share	Rs	0.6	1.6
Price to Cash Flow	x	11.2	18.4
TTM P/E ratio	x	23.6	23.7
Price / Book Value ratio	x	1.6	5.6
Market Cap	Rs m	53,609	214,158
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for TRIDENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.0x during FY21. 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 13.9x during FY22, from 6.5x during FY21. 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 improved and stood at 21.7% during FY22, from 9.1% during FY22. 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 improved and stood at 28.9% during FY22, from 13.1% during FY21. 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 improved and stood at 14.2% during FY22, from 6.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.3
Debtors’ Days	Days	36	27
Interest coverage	x	6.5	13.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.5	14.2
Return on equity	%	9.1	21.7
Return on capital employed	%	13.1	28.9

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 16.4 to Rs 38.7, registering a gain of Rs 22.4 or around 136.7%.

Overall, the S&P BSE SENSEX is up 0.9% 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