ASHOK LEYLAND 2020-21 Annual Report Analysis

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ASHOK LEYLAND 2020-21 Annual Report Analysis
Tue, 19 Oct

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 142.0, stands at 631.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 54.4 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 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 34.5 54.4
TTM P/E ratio x 631.6 631.6
Price / Book Value ratio x 2.5 3.3
Market Cap Rs m 416,698 416,698
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 74.5 to Rs 142.0, registering a gain of Rs 67.5 or around 90.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 26,314.8 (down 0.6%). Over the last one year it has moved up from 17,805.6 to 26,314.8, a gain of 8,509 points (up 47.8%).

Overall, the S&P BSE SENSEX is up 52.0% over the year.

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

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