AIA ENGINEERING 2020-21 Annual Report Analysis

Wed, 31 Mar

AIA ENGINEERING 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.

AIA ENGINEERING Income Statement Analysis

• Operating income during the year fell 2.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.9% in FY21 as against 23.1% in FY20.
• Depreciation charges decreased by 4.5% and finance costs decreased by 18.7% YoY, respectively.
• Other income grew by 21.3% YoY.
• Net profit for the year declined by 4.2% YoY.
• Net profit margins during the year declined from 19.9% in FY20 to 19.6% in FY21.

AIA ENGINEERING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	29,591	28,815	-2.6%
Other income	Rs m	1,419	1,722	21.3%
Total Revenues	Rs m	31,010	30,537	-1.5%
Gross profit	Rs m	6,848	6,591	-3.7%
Depreciation	Rs m	979	935	-4.5%
Interest	Rs m	101	82	-18.7%
Profit before tax	Rs m	7,187	7,296	1.5%
Tax	Rs m	1,284	1,639	27.7%
Profit after tax	Rs m	5,903	5,657	-4.2%
Gross profit margin	%	23.1	22.9
Effective tax rate	%	17.9	22.5
Net profit margin	%	19.9	19.6

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AIA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 22.6%.
• Current assets rose 10% and stood at Rs 35 billion, while fixed assets rose 28% and stood at Rs 13 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 48 billion as against Rs 42 billion during FY20, thereby witnessing a growth of 14%.

AIA ENGINEERING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	37,013	42,443	14.7
Current Liabilities	Rs m	3,626	4,446	22.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	41,615	47,580	14.3
Current assets	Rs m	31,442	34,592	10.0
Fixed Assets	Rs m	10,173	12,988	27.7
Total Assets	Rs m	41,615	47,580	14.3

AIA ENGINEERING Cash Flow Statement Analysis

• AIA ENGINEERING's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 13.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 665 million, an improvement of 116% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs -598 million net cash flows seen during FY20.

AIA ENGINEERING 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	6,791	5,985	-11.9%
Cash Flow from Investing Activities	Rs m	-3,106	-3,513	-
Cash Flow from Financing Activities	Rs m	-4,288	665	-
Net Cash Flow	Rs m	-598	3,137	-

Current Valuations for AIA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.0, an decline from the EPS of Rs 62.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,048.0, stands at 34.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 24.6 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	313.7	305.5
TTM Earnings per share	Rs	62.6	60.0
Diluted earnings per share	Rs	62.6	60.0
Price to Cash Flow	x	18.9	24.6
TTM P/E ratio	x	22.1	34.1
Price / Book Value ratio	x	3.9	3.8
Market Cap	Rs m	146,010	162,391
Dividends per share (Unadj.)	Rs	27.0	9.0

Ratio Analysis for AIA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.8x during FY21, from 8.7x 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 90.1x during FY21, from 72.4x 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 13.3% during FY21, from 15.9% 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 17.4% during FY21, from 19.7% 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 12.1% during FY21, from 14.4% 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	8.7	7.8
Debtors’ Days	Days	800	809
Interest coverage	x	72.4	90.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.4	12.1
Return on equity	%	15.9	13.3
Return on capital employed	%	19.7	17.4

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

AIA ENGINEERING Share Price Performance

Over the last one year, AIA ENGINEERING share price has moved up from Rs 1,382.1 to Rs 2,048.0, registering a gain of Rs 665.9 or around 48.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Read: Latest Annual Report Analysis of AIA ENGINEERING