AXTEL INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

AXTEL INDUSTRIES 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.

AXTEL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 53.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.7% in FY21 as against 14.4% in FY20.
• Depreciation charges decreased by 3.4% and finance costs increased by 1.7% YoY, respectively.
• Other income declined by 11.0% YoY.
• Net profit for the year grew by 95.5% YoY.
• Net profit margins during the year grew from 10.9% in FY20 to 13.9% in FY21.

AXTEL INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	997	1,534	53.9%
Other income	Rs m	39	35	-11.0%
Total Revenues	Rs m	1,036	1,569	51.5%
Gross profit	Rs m	144	287	100.0%
Depreciation	Rs m	27	26	-3.4%
Interest	Rs m	7	7	1.7%
Profit before tax	Rs m	149	289	94.2%
Tax	Rs m	40	76	90.5%
Profit after tax	Rs m	109	213	95.5%
Gross profit margin	%	14.4	18.7
Effective tax rate	%	26.7	26.2
Net profit margin	%	10.9	13.9

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AXTEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 394 million as compared to Rs 467 million in FY20, thereby witnessing an decrease of -15.8%.
• Long-term debt down at Rs 3 million as compared to Rs 6 million during FY20, a fall of 49.6%.
• Current assets rose 16% and stood at Rs 953 million, while fixed assets fell 15% and stood at Rs 201 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 1 billion as against Rs 1 billion during FY20, thereby witnessing a growth of 9%.

AXTEL INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	550	714	29.8
Current Liabilities	Rs m	467	394	-15.8
Long-term Debt	Rs m	6	3	-49.6
Total Liabilities	Rs m	1,060	1,154	8.9
Current assets	Rs m	825	953	15.6
Fixed Assets	Rs m	235	201	-14.5
Total Assets	Rs m	1,060	1,154	8.9

AXTEL INDUSTRIES Cash Flow Statement Analysis

• AXTEL INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 245 million, an improvement of 103.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -78 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -127 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 40 million from the Rs -12 million net cash flows seen during FY20.

AXTEL INDUSTRIES 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	120	245	103.8%
Cash Flow from Investing Activities	Rs m	-114	-78	-
Cash Flow from Financing Activities	Rs m	-19	-127	-
Net Cash Flow	Rs m	-12	40	-

Current Valuations for AXTEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an improvement from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 314.1, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	61.7	95.0
TTM Earnings per share	Rs	6.7	13.2
Diluted earnings per share	Rs	6.7	13.2
Price to Cash Flow	x	11.2	15.0
TTM P/E ratio	x	14.0	23.8
Price / Book Value ratio	x	3.3	5.0
Market Cap	Rs m	1,831	3,578
Dividends per share (Unadj.)	Rs	2.5	6.0

Ratio Analysis for AXTEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 1.8x 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 improved and stood at 41.3x during FY21, from 22.1x 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 improved and stood at 29.8% during FY21, from 19.8% 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 improved and stood at 41.3% during FY21, from 28.0% 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 improved and stood at 19.1% during FY21, from 10.9% 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	1.8	2.4
Debtors’ Days	Days	435	477
Interest coverage	x	22.1	41.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	19.1
Return on equity	%	19.8	29.8
Return on capital employed	%	28.0	41.3

To see how AXTEL INDUSTRIES has performed over the last 5 years, please visit here.

AXTEL INDUSTRIES Share Price Performance

Over the last one year, AXTEL INDUSTRIES share price has moved up from Rs 94.1 to Rs 314.1, registering a gain of Rs 220.0 or around 233.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for AXTEL INDUSTRIES and quarterly results for AXTEL INDUSTRIES)

Read: Latest Annual Report Analysis of AXTEL INDUSTRIES