APTECH 2020-21 Annual Report Analysis

Wed, 31 Mar

APTECH 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.

APTECH Income Statement Analysis

• Operating income during the year fell 45.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY21 as against 12.1% in FY20.
• Depreciation charges decreased by 5.7% and finance costs increased by 32.7% YoY, respectively.
• Other income grew by 39.0% YoY.
• Net profit for the year declined by 9.2% YoY.
• Net profit margins during the year grew from 6.2% in FY20 to 10.4% in FY21.

APTECH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,168	1,181	-45.5%
Other income	Rs m	54	76	39.0%
Total Revenues	Rs m	2,223	1,256	-43.5%
Gross profit	Rs m	263	155	-41.2%
Depreciation	Rs m	132	125	-5.7%
Interest	Rs m	14	18	32.7%
Profit before tax	Rs m	172	88	-48.9%
Tax	Rs m	37	-35	-194.8%
Profit after tax	Rs m	135	123	-9.2%
Gross profit margin	%	12.1	13.1
Effective tax rate	%	21.4	-39.7
Net profit margin	%	6.2	10.4

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APTECH Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 524 million as compared to Rs 781 million in FY20, thereby witnessing an decrease of -33.0%.
• Current assets fell 5% and stood at Rs 1 billion, while fixed assets fell 66% and stood at Rs 618 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 3 billion during FY20, thereby witnessing a fall of 39%.

APTECH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,433	1,551	-36.2
Current Liabilities	Rs m	781	524	-33.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,274	1,999	-38.9
Current assets	Rs m	1,454	1,381	-5.0
Fixed Assets	Rs m	1,820	618	-66.0
Total Assets	Rs m	3,274	1,999	-38.9

APTECH Cash Flow Statement Analysis

• APTECH's cash flow from operating activities (CFO) during FY21 stood at Rs 408 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -55 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -243 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 111 million from the Rs -59 million net cash flows seen during FY20.

APTECH 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	-98	408	-
Cash Flow from Investing Activities	Rs m	215	-55	-
Cash Flow from Financing Activities	Rs m	-176	-243	-
Net Cash Flow	Rs m	-59	111	-

Current Valuations for APTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.7, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 26.6 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	53.9	29.0
TTM Earnings per share	Rs	3.4	3.0
Diluted earnings per share	Rs	3.3	3.0
Price to Cash Flow	x	13.0	26.6
TTM P/E ratio	x	17.9	47.1
Price / Book Value ratio	x	2.1	4.2
Market Cap	Rs m	5,199	6,566
Dividends per share (Unadj.)	Rs	8.0	2.3

Ratio Analysis for APTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 1.9x 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 deteriorated and stood at 5.9x during FY21, from 13.7x 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 improved and stood at 7.9% during FY21, from 5.6% 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 6.8% during FY21, from 7.6% 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 improved and stood at 7.0% during FY21, from 4.5% 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	1.9	2.6
Debtors’ Days	Days	1,243	718
Interest coverage	x	13.7	5.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	7.0
Return on equity	%	5.6	7.9
Return on capital employed	%	7.6	6.8

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

APTECH Share Price Performance

Over the last one year, APTECH share price has moved up from Rs 83.8 to Rs 186.7, registering a gain of Rs 102.9 or around 122.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

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

Read: Latest Annual Report Analysis of APTECH