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ASHOK LEYLAND 2020-21 Annual Report Analysis
Wed, 31 Mar

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

  • Operating income during the year fell 11.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY21 as against 14.5% in FY20.
  • Depreciation charges increased by 11.4% and finance costs increased by 5.5% YoY, respectively.
  • Other income grew by 23.1% YoY.
  • Net profit for the year declined by 115.1% YoY.
  • Net profit margins during the year declined from 2.1% in FY20 to 0.4% in FY21.

ASHOK LEYLAND Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 219,513 194,541 -11.4%
Other income Rs m 1,078 1,328 23.1%
Total Revenues Rs m 220,591 195,869 -11.2%
Gross profit Rs m 31,801 25,369 -20.2%
Depreciation Rs m 7,500 8,356 11.4%
Interest Rs m 18,017 19,006 5.5%
Profit before tax Rs m 7,363 -666 -109.0%
Tax Rs m 2,794 25 -99.1%
Profit after tax Rs m 4,569 -691 -115.1%
Gross profit margin % 14.5 13.0
Effective tax rate % 37.9 -3.8
Net profit margin % 2.1 -0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ASHOK LEYLAND Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 162 billion as compared to Rs 148 billion in FY20, thereby witnessing an increase of 9.7%.
  • Long-term debt stood at Rs 156 billion as compared to Rs 133 billion during FY20, a growth of 17.0%.
  • Current assets rose 4% and stood at Rs 159 billion, while fixed assets rose 15% and stood at Rs 261 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 421 billion as against Rs 381 billion during FY20, thereby witnessing a growth of 10%.

ASHOK LEYLAND Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 77,631 78,175 0.7
 
Current Liabilities Rs m 147,947 162,238 9.7
Long-term Debt Rs m 133,087 155,646 17.0
Total Liabilities Rs m 381,192 420,580 10.3
 
Current assets Rs m 153,095 159,189 4.0
Fixed Assets Rs m 228,097 261,391 14.6
Total Assets Rs m 381,192 420,580 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASHOK LEYLAND Cash Flow Statement Analysis

  • ASHOK LEYLAND's cash flow from operating activities (CFO) during FY21 stood at Rs -11 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 13 billion, an improvement of 7% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -7 billion from the Rs 4 billion net cash flows seen during FY20.

ASHOK LEYLAND 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 3,832 -10,651 -
Cash Flow from Investing Activities Rs m -12,027 -9,911 -
Cash Flow from Financing Activities Rs m 12,389 13,307 7.4%
Net Cash Flow Rs m 4,209 -7,072 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASHOK LEYLAND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an decline from the EPS of Rs 1.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 113.5, stands at -482.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.7 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 74.8 66.3
TTM Earnings per share Rs 1.6 -0.2
Diluted earnings per share Rs 1.6 -0.2
Price to Cash Flow x 10.5 33.7
TTM P/E ratio x 27.7 -482.0
Price / Book Value ratio x 2.5 3.3
Market Cap Rs m 192,864 258,620
Dividends per share (Unadj.) Rs 0.5 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASHOK LEYLAND

  • 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 deteriorated and stood at 1.0x during FY21, from 1.4x 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 -0.9% during FY21, from 5.9% 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 7.8% during FY21, from 12.0% 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 4.4% during FY21, from 5.9% 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 3 6
Interest coverage x 1.4 1.0
Debt to equity ratio x 1.7 2.0
Return on assets % 5.9 4.4
Return on equity % 5.9 -0.9
Return on capital employed % 12.0 7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved up from Rs 43.1 to Rs 113.5, registering a gain of Rs 70.4 or around 163.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 22,252.2 (down 0.0%). Over the last one year it has moved up from 10,746.2 to 22,252.2, a gain of 11,506 points (up 107.1%).

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

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

Annual Report FAQs

What is the current share price of ASHOK LEYLAND?

ASHOK LEYLAND currently trades at Rs 156.3 per share. You can check out the latest share price performance of ASHOK LEYLAND here...

What was the revenue of ASHOK LEYLAND in FY21? How does it compare to earlier years?

The revenues of ASHOK LEYLAND stood at Rs 195,869 m in FY21, which was down -11.2% compared to Rs 220,591 m reported in FY20.

ASHOK LEYLAND's revenue has fallen from Rs 216,982 m in FY17 to Rs 195,869 m in FY21.

Over the past 5 years, the revenue of ASHOK LEYLAND has grown at a CAGR of -2.5%.

What was the net profit of ASHOK LEYLAND in FY21? How does it compare to earlier years?

The net loss of ASHOK LEYLAND stood at Rs -691 m in FY21, which was down -115.1% compared to Rs 4,569 m reported in FY20.

This compares to a net profit of Rs 21,833 m in FY19 and a net profit of Rs 18,073 m in FY18.

Over the past 5 years, ASHOK LEYLAND net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ASHOK LEYLAND reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ASHOK LEYLAND reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -10,651 m as compared to Rs 3,832 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -9,911 m as compared to Rs -12,027 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 13,307 m as compared to Rs 12,389 m in FY20.

Here's the cash flow statement of ASHOK LEYLAND for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,70114,624-37,4553,832-10,651
From Investments-16,949-31,66218,919-12,027-9,911
From Financial Activity7,37719,05423,97812,38913,307
Net Cashflow-6,6812,0495,4944,209-7,072

What does the Key Ratio analysis of ASHOK LEYLAND reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ASHOK LEYLAND reveals:

  • Operating profit margins witnessed a fall and stood at 13.0% in FY21 as against 14.5% in FY20.
  • Net profit margins declined from 2.1% in FY20 to 0.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 2.0 as compared to 1.7 in FY20.

Here's the ratio/financial analysis of ASHOK LEYLAND for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)15.414.414.714.513.0
Net Profit Margin (%)7.66.26.62.1-0.4
Debt to Equity Ratio (x)1.41.41.51.72.0

Read: Latest Annual Report Analysis of ASHOK LEYLAND

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