ENGINEERS INDIA 2020-21 Annual Report Analysis

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ENGINEERS INDIA 2020-21 Annual Report Analysis
Tue, 26 Oct

ENGINEERS INDIA 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.

ENGINEERS INDIA Income Statement Analysis

  • Operating income during the year fell 2.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 56.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.3% in FY21 as against 13.8% in FY20.
  • Depreciation charges decreased by 1.4% and finance costs increased by 54.9% YoY, respectively.
  • Other income declined by 28.2% YoY.
  • Net profit for the year declined by 39.7% YoY.
  • Net profit margins during the year declined from 12.4% in FY20 to 7.8% in FY21.

ENGINEERS INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 32,373 31,443 -2.9%
Other income Rs m 2,632 1,890 -28.2%
Total Revenues Rs m 35,006 33,333 -4.8%
Gross profit Rs m 4,475 1,968 -56.0%
Depreciation Rs m 240 237 -1.4%
Interest Rs m 37 58 54.9%
Profit before tax Rs m 6,830 3,563 -47.8%
Tax Rs m 2,492 949 -61.9%
Profit after tax Rs m 4,339 2,615 -39.7%
Gross profit margin % 13.8 6.3
Effective tax rate % 36.5 26.6
Net profit margin % 12.4 7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ENGINEERS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 28 billion as compared to Rs 29 billion in FY20, thereby witnessing an decrease of -2.3%.
  • Current assets fell 36% and stood at Rs 27 billion, while fixed assets rose 78% and stood at Rs 22 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 49 billion as against Rs 55 billion during FY20, thereby witnessing a fall of 10%.

ENGINEERS INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 24,060 17,507 -27.2
 
Current Liabilities Rs m 28,798 28,121 -2.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 54,660 48,957 -10.4
 
Current assets Rs m 42,527 27,388 -35.6
Fixed Assets Rs m 12,133 21,568 77.8
Total Assets Rs m 54,660 48,957 -10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ENGINEERS INDIA Cash Flow Statement Analysis

  • ENGINEERS INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 433 million from the Rs -2 billion net cash flows seen during FY20.

ENGINEERS INDIA 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 3,756 1,714 -54.4%
Cash Flow from Investing Activities Rs m -2,294 7,756 -
Cash Flow from Financing Activities Rs m -3,341 -9,037 -
Net Cash Flow Rs m -1,879 433 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ENGINEERS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 6.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 73.9, stands at 13.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.6 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 51.2 55.9
TTM Earnings per share Rs 6.9 4.7
Diluted earnings per share Rs 7.7 4.7
Price to Cash Flow x 10.2 14.6
TTM P/E ratio x 15.3 13.6
Price / Book Value ratio x 2.3 2.4
Market Cap Rs m 46,698 41,535
Dividends per share (Unadj.) Rs 5.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ENGINEERS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.5x 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 62.8x during FY21, from 184.4x 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 declined and down at 14.9% during FY21, from 18.0% 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 20.7% during FY21, from 28.5% 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 declined and down at 5.5% during FY21, from 8.0% 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 1.5 1.0
Debtors’ Days Days 767 618
Interest coverage x 184.4 62.8
Debt to equity ratio x 0.0 0.0
Return on assets % 8.0 5.5
Return on equity % 18.0 14.9
Return on capital employed % 28.5 20.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ENGINEERS INDIA Share Price Performance

Over the last one year, ENGINEERS INDIA share price has moved up from Rs 65.7 to Rs 73.9, registering a gain of Rs 8.2 or around 12.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,844.8 (up 0.7%). Over the last one year it has moved up from 14,119.2 to 26,844.8, a gain of 12,726 points (up 90.1%).

Overall, the S&P BSE SENSEX is up 51.2% over the year.

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

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Related Views on News

ENGINEERS INDIA Announces Quarterly Results (1QFY22); Net Profit Up 87.1% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, ENGINEERS INDIA has posted a net profit of Rs 926 m (up 87.1% YoY). Sales on the other hand came in at Rs 7 bn (up 57.2% YoY). Read on for a complete analysis of ENGINEERS INDIA's quarterly results.

ENGINEERS INDIA Announces Quarterly Results (1QFY21); Net Profit Down 61.3% (Quarterly Result Update)

Sep 10, 2020 | Updated on Sep 10, 2020

For the quarter ended June 2020, ENGINEERS INDIA has posted a net profit of Rs 481 m (down 61.3% YoY). Sales on the other hand came in at Rs 5 bn (down 36.3% YoY). Read on for a complete analysis of ENGINEERS INDIA's quarterly results.

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