INDUS TOWERS 2020-21 Annual Report Analysis

Wed, 31 Mar

INDUS TOWERS 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.

INDUS TOWERS Income Statement Analysis

• Operating income during the year rose 106.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 51.1% in FY21 as against 52.8% in FY20.
• Depreciation charges increased by 122.3% and finance costs increased by 149.7% YoY, respectively.
• Other income declined by 5.0% YoY.
• Net profit for the year grew by 51.8% YoY.
• Net profit margins during the year declined from 28.4% in FY20 to 20.9% in FY21.

INDUS TOWERS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	67,430	139,543	106.9%
Other income	Rs m	4,657	4,422	-5.0%
Total Revenues	Rs m	72,087	143,965	99.7%
Gross profit	Rs m	35,578	71,332	100.5%
Depreciation	Rs m	12,815	28,484	122.3%
Interest	Rs m	3,350	8,364	149.7%
Profit before tax	Rs m	24,070	38,906	61.6%
Tax	Rs m	4,888	9,779	100.1%
Profit after tax	Rs m	19,182	29,127	51.8%
Gross profit margin	%	52.8	51.1
Effective tax rate	%	20.3	25.1
Net profit margin	%	28.4	20.9

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INDUS TOWERS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 140 billion as compared to Rs 38 billion in FY20, thereby witnessing an increase of 264.6%.
• Long-term debt stood at Rs 15 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 94% and stood at Rs 96 billion, while fixed assets rose 141% and stood at Rs 353 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 449 billion as against Rs 196 billion during FY20, thereby witnessing a growth of 129%.

INDUS TOWERS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	135,363	158,729	17.3
Current Liabilities	Rs m	38,263	139,506	264.6
Long-term Debt	Rs m	0	15,051	0.0
Total Liabilities	Rs m	196,208	449,437	129.1
Current assets	Rs m	49,513	96,298	94.5
Fixed Assets	Rs m	146,695	353,139	140.7
Total Assets	Rs m	196,208	449,437	129.1

INDUS TOWERS Cash Flow Statement Analysis

• INDUS TOWERS's cash flow from operating activities (CFO) during FY21 stood at Rs 75 billion, an improvement of 223.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 18 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -94 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -978 million from the Rs 1 billion net cash flows seen during FY20.

INDUS TOWERS 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	23,151	74,811	223.1%
Cash Flow from Investing Activities	Rs m	-10,122	17,977	-
Cash Flow from Financing Activities	Rs m	-11,854	-93,768	-
Net Cash Flow	Rs m	1,175	-978	-

Current Valuations for INDUS TOWERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 10.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 245.3, stands at 22.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 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	36.5	51.8
TTM Earnings per share	Rs	10.4	10.8
Diluted earnings per share	Rs	7.1	10.8
Price to Cash Flow	x	13.5	10.1
TTM P/E ratio	x	22.5	22.7
Price / Book Value ratio	x	3.0	3.7
Market Cap	Rs m	408,024	581,500
Dividends per share (Unadj.)	Rs	10.5	20.1

Ratio Analysis for INDUS TOWERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 1.3x 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 5.7x during FY21, from 8.2x 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 improved and stood at 18.4% during FY21, from 14.2% 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 27.2% during FY21, from 20.3% 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 8.3% during FY21, from 11.5% 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	1.3	0.7
Debtors’ Days	Days	20	100
Interest coverage	x	8.2	5.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.5	8.3
Return on equity	%	14.2	18.4
Return on capital employed	%	20.3	27.2

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

INDUS TOWERS Share Price Performance

Over the last one year, INDUS TOWERS share price has moved up from Rs 160.1 to Rs 245.3, registering a gain of Rs 85.2 or around 53.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

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

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

Read: Latest Annual Report Analysis of INDUS TOWERS