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EIH 2020-21 Annual Report Analysis
Wed, 31 Mar

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 10.4% in FY20 to 63.3% 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 % 10.4 -63.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

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 92.7, stands at -18.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 11.7 times.
  • The company's price to cash flow (P/CF) ratio stood at -28.7 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 13.2 -28.7
TTM P/E ratio x 24.9 -18.6
Price / Book Value ratio x 2.4 1.7
Market Cap Rs m 76,819 52,280
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 65.8 to Rs 92.7, registering a gain of Rs 26.9 or around 40.9%.

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

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

Annual Report FAQs

What is the current share price of EIH?

EIH currently trades at Rs 448.8 per share. You can check out the latest share price performance of EIH here...

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

The revenues of EIH stood at Rs 5,550 m in FY21, which was down -67.1% compared to Rs 16,874 m reported in FY20.

EIH's revenue has fallen from Rs 16,146 m in FY17 to Rs 5,550 m in FY21.

Over the past 5 years, the revenue of EIH has grown at a CAGR of -23.4%.

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

The net loss of EIH stood at Rs -3,146 m in FY21, which was down -290.4% compared to Rs 1,653 m reported in FY20.

This compares to a net profit of Rs 1,367 m in FY19 and a net profit of Rs 1,790 m in FY18.

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

What does the cash flow statement of EIH 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 EIH reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -1,394 m as compared to Rs 3,170 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -527 m as compared to Rs -1,634 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 1,696 m as compared to Rs -1,842 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations2,4332,7182,8253,170-1,394
From Investments-2,687-3,179-2,324-1,634-527
From Financial Activity-42452-189-1,8421,696
Net Cashflow-296-9311-305-225

What does the Key Ratio analysis of EIH 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 EIH reveals:

  • Operating profit margins witnessed a growth and stood at 59.2% in FY21 as against 17.4% in FY20.
  • Net profit margins declined from 10.4% in FY20 to 63.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.618.718.217.4-59.2
Net Profit Margin (%)7.011.27.510.4-63.3
Debt to Equity Ratio (x)0.10.10.10.10.1

Read: Latest Annual Report Analysis of EIH

 

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