Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


RELIANCE INFRA 2020-21 Annual Report Analysis
Wed, 31 Mar

RELIANCE INFRA 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.

RELIANCE INFRA Income Statement Analysis

  • Operating income during the year fell 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in FY21 as against 12.9% in FY20.
  • Depreciation charges decreased by 2.7% and finance costs increased by 13.6% YoY, respectively.
  • Other income declined by 54.3% YoY.
  • Net profit for the year declined by 116.7% YoY.
  • Net profit margins during the year declined from 4.4% in FY20 to 0.8% in FY21.

RELIANCE INFRA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 194,617 172,209 -11.5%
Other income Rs m 21,027 9,602 -54.3%
Total Revenues Rs m 215,644 181,812 -15.7%
Gross profit Rs m 25,016 28,072 12.2%
Depreciation Rs m 13,891 13,521 -2.7%
Interest Rs m 24,005 27,267 13.6%
Profit before tax Rs m 8,147 -3,114 -138.2%
Tax Rs m -509 -1,671 228.4%
Profit after tax Rs m 8,656 -1,443 -116.7%
Gross profit margin % 12.9 16.3
Effective tax rate % -6.2 53.7
Net profit margin % 4.4 -0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

RELIANCE INFRA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 377 billion as compared to Rs 350 billion in FY20, thereby witnessing an increase of 7.8%.
  • Long-term debt down at Rs 65 billion as compared to Rs 118 billion during FY20, a fall of 45.0%.
  • Current assets fell 8% and stood at Rs 177 billion, while fixed assets fell 14% and stood at Rs 239 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 620 billion as against Rs 649 billion during FY20, thereby witnessing a fall of 4%.

RELIANCE INFRA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 97,924 92,029 -6.0
 
Current Liabilities Rs m 350,142 377,478 7.8
Long-term Debt Rs m 117,589 64,729 -45.0
Total Liabilities Rs m 648,607 619,941 -4.4
 
Current assets Rs m 191,840 176,860 -7.8
Fixed Assets Rs m 277,591 239,135 -13.9
Total Assets Rs m 648,607 619,941 -4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RELIANCE INFRA Cash Flow Statement Analysis

  • RELIANCE INFRA's cash flow from operating activities (CFO) during FY21 stood at Rs 14 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -15 billion, an improvement of 23% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -774 million from the Rs 875 million net cash flows seen during FY20.

RELIANCE INFRA 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 28,748 14,362 -50.0%
Cash Flow from Investing Activities Rs m -8,083 4,469 -
Cash Flow from Financing Activities Rs m -19,790 -15,311 -
Net Cash Flow Rs m 875 -774 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RELIANCE INFRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 32.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 35.1, stands at 0.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.1 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 0.6 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 740.0 654.8
TTM Earnings per share Rs 32.9 -5.5
Diluted earnings per share Rs 32.9 -5.5
Price to Cash Flow x 0.1 0.6
TTM P/E ratio x 0.3 0.3
Price / Book Value ratio x 0.2 0.1
Market Cap Rs m 20,369 7,272
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RELIANCE INFRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY21, from 0.5x 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 0.9x during FY21, from 1.3x 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 -1.6% during FY21, from 8.8% 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 15.4% during FY21, from 14.9% 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 4.2% during FY21, from 5.0% 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 0.5 0.5
Debtors’ Days Days 9 8
Interest coverage x 1.3 0.9
Debt to equity ratio x 1.2 0.7
Return on assets % 5.0 4.2
Return on equity % 8.8 -1.6
Return on capital employed % 14.9 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RELIANCE INFRA Share Price Performance

Over the last one year, RELIANCE INFRA share price has moved up from Rs 10.1 to Rs 35.1, registering a gain of Rs 25.0 or around 247.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

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

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

Annual Report FAQs

What is the current share price of RELIANCE INFRA?

RELIANCE INFRA currently trades at Rs 270.5 per share. You can check out the latest share price performance of RELIANCE INFRA here...

What was the revenue of RELIANCE INFRA in FY21? How does it compare to earlier years?

The revenues of RELIANCE INFRA stood at Rs 181,812 m in FY21, which was down -15.7% compared to Rs 215,644 m reported in FY20.

RELIANCE INFRA's revenue has fallen from Rs 288,084 m in FY17 to Rs 181,812 m in FY21.

Over the past 5 years, the revenue of RELIANCE INFRA has grown at a CAGR of -10.9%.

What was the net profit of RELIANCE INFRA in FY21? How does it compare to earlier years?

The net loss of RELIANCE INFRA stood at Rs -1,443 m in FY21, which was down -116.7% compared to Rs 8,656 m reported in FY20.

This compares to a net loss of Rs -9,398 m in FY19 and a net profit of Rs 11,577 m in FY18.

Over the past 5 years, RELIANCE INFRA net profit has grown at a CAGR of NaN%.

What does the cash flow statement of RELIANCE INFRA 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 RELIANCE INFRA reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 14,362 m as compared to Rs 28,748 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 4,469 m as compared to Rs -8,083 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -15,311 m as compared to Rs -19,790 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations86,78281,5326,84128,74814,362
From Investments-596-7,86527,592-8,0834,469
From Financial Activity-84,516-74,283-33,341-19,790-15,311
Net Cashflow1,520-8021,092875-774

What does the Key Ratio analysis of RELIANCE INFRA 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 RELIANCE INFRA reveals:

  • Operating profit margins witnessed a fall and down at 16.3% in FY21 as against 12.9% in FY20.
  • Net profit margins declined from 4.4% in FY20 to 0.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.7 as compared to 1.2 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)22.424.2-20.212.916.3
Net Profit Margin (%)4.16.3-4.84.4-0.8
Debt to Equity Ratio (x)0.60.70.91.20.7

Read: Latest Annual Report Analysis of RELIANCE INFRA

 

Equitymaster requests your view! Post a comment on "RELIANCE INFRA 2020-21 Annual Report Analysis". Click here!