AUTOMOTIVE AXLES 2020-21 Annual Report Analysis

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AUTOMOTIVE AXLES 2020-21 Annual Report Analysis
Thu, 28 Oct

AUTOMOTIVE AXLES 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.

AUTOMOTIVE AXLES Income Statement Analysis

  • Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 32.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY21 as against 9.6% in FY20.
  • Depreciation charges decreased by 3.3% and finance costs increased by 64.3% YoY, respectively.
  • Other income declined by 8.4% YoY.
  • Net profit for the year declined by 44.7% YoY.
  • Net profit margins during the year declined from 4.3% in FY20 to 2.5% in FY21.

AUTOMOTIVE AXLES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 9,520 9,056 -4.9%
Other income Rs m 77 71 -8.4%
Total Revenues Rs m 9,597 9,126 -4.9%
Gross profit Rs m 913 621 -32.0%
Depreciation Rs m 372 360 -3.3%
Interest Rs m 18 30 64.3%
Profit before tax Rs m 600 302 -49.7%
Tax Rs m 188 74 -60.5%
Profit after tax Rs m 411 227 -44.7%
Gross profit margin % 9.6 6.9
Effective tax rate % 31.4 24.6
Net profit margin % 4.3 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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AUTOMOTIVE AXLES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 128.4%.
  • Long-term debt down at Rs 146 million as compared to Rs 188 million during FY20, a fall of 22.2%.
  • Current assets rose 55% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 30%.

AUTOMOTIVE AXLES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,319 5,541 4.2
 
Current Liabilities Rs m 1,584 3,617 128.4
Long-term Debt Rs m 188 146 -22.2
Total Liabilities Rs m 7,184 9,365 30.3
 
Current assets Rs m 4,094 6,334 54.7
Fixed Assets Rs m 3,090 3,030 -1.9
Total Assets Rs m 7,184 9,365 30.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AUTOMOTIVE AXLES Cash Flow Statement Analysis

  • AUTOMOTIVE AXLES's cash flow from operating activities (CFO) during FY21 stood at Rs 487 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -398 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -101 million, an improvement of 90% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -11 million from the Rs 340 million net cash flows seen during FY20.

AUTOMOTIVE AXLES 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 1,978 487 -75.4%
Cash Flow from Investing Activities Rs m -589 -398 -
Cash Flow from Financing Activities Rs m -1,049 -101 -
Net Cash Flow Rs m 340 -11 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AUTOMOTIVE AXLES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an decline from the EPS of Rs 27.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,345.1, stands at 39.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.6 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 630.0 599.3
TTM Earnings per share Rs 27.2 15.0
Diluted earnings per share Rs 27.2 15.0
Price to Cash Flow x 25.9 34.6
TTM P/E ratio x 39.6 39.6
Price / Book Value ratio x 2.3 2.2
Market Cap Rs m 20,327 20,327
Dividends per share (Unadj.) Rs 6.8 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AUTOMOTIVE AXLES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 2.6x 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 11.2x during FY21, from 34.2x 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 4.1% during FY21, from 7.7% 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 5.8% during FY21, from 11.2% 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 2.7% during FY21, from 6.0% 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 2.6 1.8
Debtors’ Days Days 47 114
Interest coverage x 34.2 11.2
Debt to equity ratio x 0.0 0.0
Return on assets % 6.0 2.7
Return on equity % 7.7 4.1
Return on capital employed % 11.2 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

AUTOMOTIVE AXLES Share Price Performance

Over the last one year, AUTOMOTIVE AXLES share price has moved up from Rs 704.3 to Rs 1,345.1, registering a gain of Rs 640.8 or around 91.0%.

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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