EIH 2020-21 Annual Report Analysis

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EIH 2020-21 Annual Report Analysis
Thu, 12 Aug

EIH 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.

EIH Income Statement Analysis

  • Operating income during the year fell 68.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 206.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 59.2% in FY21 as against 17.4% in FY20.
  • Depreciation charges decreased by 9.4% and finance costs decreased by 17.7% YoY, respectively.
  • Other income declined by 36.5% YoY.
  • Net profit for the year declined by 290.4% YoY.
  • Net profit margins during the year declined from 9.8% in FY20 to 56.7% in FY21.

EIH Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,963 4,971 -68.9%
Other income Rs m 912 579 -36.5%
Total Revenues Rs m 16,874 5,550 -67.1%
Gross profit Rs m 2,771 -2,944 -206.2%
Depreciation Rs m 1,465 1,327 -9.4%
Interest Rs m 556 457 -17.7%
Profit before tax Rs m 1,662 -4,149 -349.7%
Tax Rs m 9 -1,003 -11,518.0%
Profit after tax Rs m 1,653 -3,146 -290.4%
Gross profit margin % 17.4 -59.2
Effective tax rate % 0.5 24.2
Net profit margin % 9.8 -56.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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EIH Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -32.0%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY20, a growth of 8.9%.
  • Current assets fell 27% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 37 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 41 billion as against Rs 44 billion during FY20, thereby witnessing a fall of 7%.

EIH Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 31,365 31,044 -1.0
 
Current Liabilities Rs m 6,008 4,085 -32.0
Long-term Debt Rs m 2,338 2,546 8.9
Total Liabilities Rs m 44,421 41,245 -7.1
 
Current assets Rs m 6,273 4,556 -27.4
Fixed Assets Rs m 38,148 36,689 -3.8
Total Assets Rs m 44,421 41,245 -7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EIH Cash Flow Statement Analysis

  • EIH's cash flow from operating activities (CFO) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -527 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 192% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -225 million from the Rs -305 million net cash flows seen during FY20.

EIH 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 3,170 -1,394 -
Cash Flow from Investing Activities Rs m -1,634 -527 -
Cash Flow from Financing Activities Rs m -1,842 1,696 -
Net Cash Flow Rs m -305 -225 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EIH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.0, an decline from the EPS of Rs 2.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 105.2, stands at -23.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 10.5 times.
  • The company's price to cash flow (P/CF) ratio stood at -36.2 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 27.9 7.9
TTM Earnings per share Rs 2.9 -5.0
Diluted earnings per share Rs 2.6 -5.0
Price to Cash Flow x 19.3 -36.2
TTM P/E ratio x -21.4 -23.4
Price / Book Value ratio x 2.4 1.7
Market Cap Rs m 60,129 65,788
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EIH

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.0x 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 -8.1x during FY21, from 4.0x 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 -10.1% during FY21, from 5.3% 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 declined and down at -11.0% during FY21, from 6.6% 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 -6.5% 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 1.0 1.1
Debtors’ Days Days 47 57
Interest coverage x 4.0 -8.1
Debt to equity ratio x 0.1 0.1
Return on assets % 5.0 -6.5
Return on equity % 5.3 -10.1
Return on capital employed % 6.6 -11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EIH Share Price Performance

Over the last one year, EIH share price has moved up from Rs 68.2 to Rs 105.2, registering a gain of Rs 37.1 or around 54.4%.

Overall, the S&P BSE SENSEX is up 43.5% over the year.

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

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Related Views on News

EIH Announces Quarterly Results (3QFY20); Net Profit Up 17.4% (Quarterly Result Update)

Jan 27, 2020 | Updated on Jan 27, 2020

For the quarter ended December 2019, EIH has posted a net profit of Rs 750 m (up 17.4% YoY). Sales on the other hand came in at Rs 4 bn (down 4.9% YoY). Read on for a complete analysis of EIH's quarterly results.

EIH Announces Quarterly Results (2QFY20); Net Profit Up 54.8% (Quarterly Result Update)

Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, EIH has posted a net profit of Rs 410 m (up 54.8% YoY). Sales on the other hand came in at Rs 3 bn (down 13.7% YoY). Read on for a complete analysis of EIH's quarterly results.

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