ASTRA MICRO 2020-21 Annual Report Analysis

Wed, 31 Mar

ASTRA MICRO 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.

ASTRA MICRO Income Statement Analysis

• Operating income during the year rose 37.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY21 as against 19.0% in FY20.
• Depreciation charges decreased by 8.6% and finance costs increased by 73.8% YoY, respectively.
• Other income declined by 10.7% YoY.
• Net profit for the year declined by 30.1% YoY.
• Net profit margins during the year declined from 9.7% in FY20 to 4.9% in FY21.

ASTRA MICRO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,672	6,409	37.2%
Other income	Rs m	122	109	-10.7%
Total Revenues	Rs m	4,794	6,518	36.0%
Gross profit	Rs m	888	797	-10.2%
Depreciation	Rs m	258	235	-8.6%
Interest	Rs m	148	257	73.8%
Profit before tax	Rs m	604	414	-31.5%
Tax	Rs m	151	97	-35.8%
Profit after tax	Rs m	453	317	-30.1%
Gross profit margin	%	19.0	12.4
Effective tax rate	%	25.0	23.4
Net profit margin	%	9.7	4.9

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ASTRA MICRO 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 6.3%.
• Current assets rose 9% and stood at Rs 8 billion, while fixed assets fell 13% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 4%.

ASTRA MICRO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,402	5,587	3.4
Current Liabilities	Rs m	3,692	3,927	6.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,159	9,526	4.0
Current assets	Rs m	7,061	7,695	9.0
Fixed Assets	Rs m	2,098	1,830	-12.7
Total Assets	Rs m	9,159	9,526	4.0

ASTRA MICRO Cash Flow Statement Analysis

• ASTRA MICRO's cash flow from operating activities (CFO) during FY21 stood at Rs -264 million, an improvement of 262.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 356 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 84 million from the Rs -7 million net cash flows seen during FY20.

ASTRA MICRO 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	-73	-264	-
Cash Flow from Investing Activities	Rs m	-302	-8	-
Cash Flow from Financing Activities	Rs m	368	356	-3.2%
Net Cash Flow	Rs m	-7	84	-

Current Valuations for ASTRA MICRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 129.6, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	74.0
TTM Earnings per share	Rs	5.2	3.7
Diluted earnings per share	Rs	5.2	3.7
Price to Cash Flow	x	6.3	16.5
TTM P/E ratio	x	9.9	35.4
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	6,704	9,094
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for ASTRA MICRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 2.6x during FY21, from 5.1x 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 5.7% during FY21, from 8.4% 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 12.0% during FY21, from 13.9% 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 6.0% during FY21, from 6.6% 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	2.0
Debtors’ Days	Days	1,948	1,520
Interest coverage	x	5.1	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	6.0
Return on equity	%	8.4	5.7
Return on capital employed	%	13.9	12.0

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

ASTRA MICRO Share Price Performance

Over the last one year, ASTRA MICRO share price has moved up from Rs 52.0 to Rs 129.6, registering a gain of Rs 77.6 or around 149.2%.

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

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

Read: Latest Annual Report Analysis of ASTRA MICRO