MPHASIS 2021-22 Annual Report Analysis

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MPHASIS 2021-22 Annual Report Analysis
Mon, 16 May

MPHASIS 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.

MPHASIS Income Statement Analysis

  • Operating income during the year rose 23.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY22 as against 18.5% in FY21.
  • Depreciation charges increased by 20.3% and finance costs increased by 17.3% YoY, respectively.
  • Other income grew by 20.7% YoY.
  • Net profit for the year grew by 17.6% YoY.
  • Net profit margins during the year declined from 12.5% in FY21 to 12.0% in FY22.

MPHASIS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 97,223 119,614 23.0%
Other income Rs m 1,329 1,605 20.7%
Total Revenues Rs m 98,553 121,219 23.0%
Gross profit Rs m 18,029 21,176 17.5%
Depreciation Rs m 2,418 2,908 20.3%
Interest Rs m 634 744 17.3%
Profit before tax Rs m 16,306 19,129 17.3%
Tax Rs m 4,138 4,820 16.5%
Profit after tax Rs m 12,168 14,309 17.6%
Gross profit margin % 18.5 17.7
Effective tax rate % 25.4 25.2
Net profit margin % 12.5 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MPHASIS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 29 billion as compared to Rs 21 billion in FY21, thereby witnessing an increase of 35.7%.
  • Current assets rose 11% and stood at Rs 57 billion, while fixed assets rose 18% and stood at Rs 49 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 106 billion as against Rs 93 billion during FY21, thereby witnessing a growth of 14%.

MPHASIS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 64,678 68,317 5.6
 
Current Liabilities Rs m 21,437 29,100 35.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 92,729 105,945 14.3
 
Current assets Rs m 51,403 57,164 11.2
Fixed Assets Rs m 41,326 48,782 18.0
Total Assets Rs m 92,729 105,945 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MPHASIS Cash Flow Statement Analysis

  • MPHASIS's cash flow from operating activities (CFO) during FY22 stood at Rs 17 billion, an improvement of 18.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -14 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 557 million from the Rs -2 billion net cash flows seen during FY21.

MPHASIS 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 14,545 17,157 18.0%
Cash Flow from Investing Activities Rs m -8,219 -2,820 -
Cash Flow from Financing Activities Rs m -8,615 -13,887 -
Net Cash Flow Rs m -2,169 557 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MPHASIS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.2, an improvement from the EPS of Rs 65.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,493.5, stands at 32.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 3.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.7 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 519.8 636.9
TTM Earnings per share Rs 65.1 76.2
Diluted earnings per share Rs 64.8 76.2
Price to Cash Flow x 23.0 28.7
TTM P/E ratio x 27.5 32.7
Price / Book Value ratio x 3.6 7.2
Market Cap Rs m 229,790 494,256
Dividends per share (Unadj.) Rs 65.0 46.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MPHASIS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.4x 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 26.7x during FY22, from 26.7x 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 improved and stood at 20.9% during FY22, from 18.8% 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 improved and stood at 29.1% during FY22, from 26.2% 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 improved and stood at 14.2% during FY22, from 13.8% 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 2.4 2.0
Debtors’ Days Days 35 30
Interest coverage x 26.7 26.7
Debt to equity ratio x 0.0 0.0
Return on assets % 13.8 14.2
Return on equity % 18.8 20.9
Return on capital employed % 26.2 29.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MPHASIS Share Price Performance

Over the last one year, MPHASIS share price has moved up from Rs 1,789.0 to Rs 2,493.5, registering a gain of Rs 704.6 or around 39.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,792.8 (down 0.6%). Over the last one year it has moved up from 26,131.6 to 29,792.8, a gain of 3,661 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 8.8% over the year.

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

Annual Report FAQs

What is the current share price of MPHASIS?

MPHASIS currently trades at Rs 2,242.3 per share. You can check out the latest share price performance of MPHASIS here...

What was the revenue of MPHASIS in FY22? How does it compare to earlier years?

The revenues of MPHASIS stood at Rs 121,219 m in FY22, which was up 23.0% compared to Rs 98,553 m reported in FY21.

MPHASIS' revenue has grown from Rs 67,112 m in FY18 to Rs 121,219 m in FY22.

Over the past 5 years, the revenue of MPHASIS has grown at a CAGR of 15.9%.

What was the net profit of MPHASIS in FY22? How does it compare to earlier years?

The net profit of MPHASIS stood at Rs 14,309 m in FY22, which was up 17.6% compared to Rs 12,168 m reported in FY21.

This compares to a net profit of Rs 11,848 m in FY20 and a net profit of Rs 10,734 m in FY19.

Over the past 5 years, MPHASIS net profit has grown at a CAGR of 14.3%.

What does the cash flow statement of MPHASIS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of MPHASIS reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 17,157 m as compared to Rs 14,545 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -2,820 m as compared to Rs -8,219 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -13,887 m as compared to Rs -8,615 m in FY21.

Here's the cash flow statement of MPHASIS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations7,2339,49713,21014,54517,157
From Investments4,9252,8931,407-8,219-2,820
From Financial Activity-13,797-13,418-8,247-8,615-13,887
Net Cashflow-1,491-1,1226,380-2,169557

What does the Key Ratio analysis of MPHASIS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of MPHASIS reveals:

  • Operating profit margins witnessed a fall and stood at 17.7% in FY22 as against 18.5% in FY21.
  • Net profit margins declined from 12.5% in FY21 to 12.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of MPHASIS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)16.016.918.718.517.7
Net Profit Margin (%)12.813.713.412.512.0
Debt to Equity Ratio (x)0.00.00.00.00.0

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