RELIANCE INFRA 2020-21 Annual Report Analysis

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RELIANCE INFRA 2020-21 Annual Report Analysis
Wed, 3 Nov

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 17.3% in FY21 as against 13.7% 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 4.2% 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 182,886 161,892 -11.5%
Other income Rs m 21,027 9,602 -54.3%
Total Revenues Rs m 203,913 171,494 -15.9%
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 % 13.7 17.3
Effective tax rate % -6.2 53.7
Net profit margin % 4.2 -0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 85.0, stands at 29.3 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 0.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.8 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 695.4 615.6
TTM Earnings per share Rs 32.9 -5.5
Diluted earnings per share Rs 32.9 -5.5
Price to Cash Flow x 1.0 1.8
TTM P/E ratio x 29.3 29.3
Price / Book Value ratio x 0.2 0.1
Market Cap Rs m 22,341 22,341
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 10 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 19.7 to Rs 85.0, registering a gain of Rs 65.3 or around 332.3%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,401.6 (down 0.1%). Over the last one year it has moved up from 1,742.2 to 3,401.6, a gain of 1,659 points (up 95.2%).

Overall, the S&P BSE SENSEX is up 50.3% over the year.

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

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