DATAMATICS GLOBAL 2020-21 Annual Report Analysis

Wed, 31 Mar

DATAMATICS GLOBAL 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.

DATAMATICS GLOBAL Income Statement Analysis

• Operating income during the year fell 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.0% in FY21 as against 8.4% in FY20.
• Depreciation charges increased by 6.7% and finance costs decreased by 21.8% YoY, respectively.
• Other income declined by 46.0% YoY.
• Net profit for the year grew by 38.1% YoY.
• Net profit margins during the year grew from 5.0% in FY20 to 7.3% in FY21.

DATAMATICS GLOBAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	12,033	11,491	-4.5%
Other income	Rs m	292	157	-46.0%
Total Revenues	Rs m	12,325	11,648	-5.5%
Gross profit	Rs m	1,005	1,374	36.6%
Depreciation	Rs m	370	395	6.7%
Interest	Rs m	60	47	-21.8%
Profit before tax	Rs m	867	1,089	25.7%
Tax	Rs m	262	254	-3.2%
Profit after tax	Rs m	605	836	38.1%
Gross profit margin	%	8.4	12.0
Effective tax rate	%	30.2	23.3
Net profit margin	%	5.0	7.3

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DATAMATICS GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -40.1%.
• Current assets rose 4% and stood at Rs 6 billion, while fixed assets fell 35% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 10 billion during FY20, thereby witnessing a fall of 11%.

DATAMATICS GLOBAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,848	7,154	4.5
Current Liabilities	Rs m	2,581	1,545	-40.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,050	8,927	-11.2
Current assets	Rs m	6,161	6,414	4.1
Fixed Assets	Rs m	3,889	2,512	-35.4
Total Assets	Rs m	10,050	8,927	-11.2

DATAMATICS GLOBAL Cash Flow Statement Analysis

• DATAMATICS GLOBAL's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 21.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -793 million, an improvement of 721.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -990 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -957 million from the Rs 1 billion net cash flows seen during FY20.

DATAMATICS GLOBAL 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	835	1,018	21.9%
Cash Flow from Investing Activities	Rs m	-97	-793	-
Cash Flow from Financing Activities	Rs m	514	-990	-
Net Cash Flow	Rs m	1,252	-957	-

Current Valuations for DATAMATICS GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.2, an improvement from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 115.0, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.2 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	204.1	194.9
TTM Earnings per share	Rs	10.3	14.2
Diluted earnings per share	Rs	10.3	14.2
Price to Cash Flow	x	2.5	4.2
TTM P/E ratio	x	4.0	8.1
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	4,247	5,118
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DATAMATICS GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY21, from 2.4x 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 24.2x during FY21, from 15.4x 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 11.7% 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 15.9% during FY21, from 13.5% 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 9.9% during FY21, from 6.6% 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	2.4	4.2
Debtors’ Days	Days	83	58
Interest coverage	x	15.4	24.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	9.9
Return on equity	%	8.8	11.7
Return on capital employed	%	13.5	15.9

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

DATAMATICS GLOBAL Share Price Performance

Over the last one year, DATAMATICS GLOBAL share price has moved up from Rs 40.8 to Rs 115.0, registering a gain of Rs 74.2 or around 182.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

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

Read: Latest Annual Report Analysis of DATAMATICS GLOBAL