ASHOK LEYLAND 2021-22 Annual Report Analysis

Sat, 20 Aug

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

• Operating income during the year rose 34.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY22 as against 13.0% in FY21.
• Depreciation charges increased by 3.6% and finance costs decreased by 1.7% YoY, respectively.
• Other income declined by 29.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.4% in FY21 to 1.1% in FY22.

ASHOK LEYLAND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	194,541	262,372	34.9%
Other income	Rs m	1,374	976	-29.0%
Total Revenues	Rs m	195,915	263,347	34.4%
Gross profit	Rs m	25,323	24,304	-4.0%
Depreciation	Rs m	8,356	8,660	3.6%
Interest	Rs m	19,006	18,691	-1.7%
Profit before tax	Rs m	-666	-2,071	NA
Tax	Rs m	25	859	3,307.1%
Profit after tax	Rs m	-691	-2,930	NA
Gross profit margin	%	13.0	9.3
Effective tax rate	%	-3.8	-41.5
Net profit margin	%	-0.4	-1.1

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ASHOK LEYLAND Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 186 billion as compared to Rs 162 billion in FY21, thereby witnessing an increase of 14.7%.
• Long-term debt down at Rs 153 billion as compared to Rs 156 billion during FY21, a fall of 1.7%.
• Current assets rose 17% and stood at Rs 186 billion, while fixed assets fell 5% and stood at Rs 250 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 436 billion as against Rs 421 billion during FY21, thereby witnessing a growth of 4%.

ASHOK LEYLAND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	78,175	72,624	-7.1
Current Liabilities	Rs m	162,238	186,159	14.7
Long-term Debt	Rs m	155,646	152,973	-1.7
Total Liabilities	Rs m	420,580	435,737	3.6
Current assets	Rs m	159,189	186,143	16.9
Fixed Assets	Rs m	261,391	249,594	-4.5
Total Assets	Rs m	420,580	435,737	3.6

ASHOK LEYLAND Cash Flow Statement Analysis

• ASHOK LEYLAND's cash flow from operating activities (CFO) during FY22 stood at Rs 28 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -19 billion, an improvement of 93.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 5 billion from the Rs -7 billion net cash flows seen during FY21.

ASHOK LEYLAND 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	-10,651	28,446	-
Cash Flow from Investing Activities	Rs m	-9,911	-19,167	-
Cash Flow from Financing Activities	Rs m	13,307	-3,776	-
Net Cash Flow	Rs m	-7,072	5,499	-

Current Valuations for ASHOK LEYLAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 148.0, stands at -2,237.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 63.2 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	66.3	89.4
TTM Earnings per share	Rs	-0.2	-1.0
Diluted earnings per share	Rs	-0.2	-1.0
Price to Cash Flow	x	43.4	63.2
TTM P/E ratio	x	-482.0	-2,237.2
Price / Book Value ratio	x	3.3	5.0
Market Cap	Rs m	258,620	361,951
Dividends per share (Unadj.)	Rs	0.6	1.0

Ratio Analysis for ASHOK LEYLAND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 deteriorated and stood at 0.9x during FY22, from 1.0x 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 declined and down at -4.0% during FY22, from -0.9% 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 declined and down at 7.4% during FY22, from 7.8% 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 declined and down at 3.6% during FY22, from 4.4% 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	1.0
Debtors’ Days	Days	6	5
Interest coverage	x	1.0	0.9
Debt to equity ratio	x	2.0	2.1
Return on assets	%	4.4	3.6
Return on equity	%	-0.9	-4.0
Return on capital employed	%	7.8	7.4

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 119.0 to Rs 148.0, registering a gain of Rs 29.0 or around 24.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 29,733.5 (down 1.4%). Over the last one year it has moved up from 22,177.8 to 29,733.5, a gain of 7,556 points (up 34.1%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of ASHOK LEYLAND