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ENGINEERS INDIA 2020-21 Annual Report Analysis
Wed, 31 Mar

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 13.4% in FY20 to 8.3% 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 % 13.4 8.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

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 77.1, stands at 16.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.9 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 7.4 14.9
TTM P/E ratio x 7.8 16.6
Price / Book Value ratio x 2.3 2.4
Market Cap Rs m 56,382 42,490
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 60.1 to Rs 77.1, registering a gain of Rs 17.0 or around 28.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Annual Report FAQs

What is the current share price of ENGINEERS INDIA?

ENGINEERS INDIA currently trades at Rs 202.0 per share. You can check out the latest share price performance of ENGINEERS INDIA here...

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

The revenues of ENGINEERS INDIA stood at Rs 33,333 m in FY21, which was down -4.8% compared to Rs 35,006 m reported in FY20.

ENGINEERS INDIA's revenue has grown from Rs 17,215 m in FY17 to Rs 33,333 m in FY21.

Over the past 5 years, the revenue of ENGINEERS INDIA has grown at a CAGR of 18.0%.

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

The net profit of ENGINEERS INDIA stood at Rs 2,615 m in FY21, which was down -39.7% compared to Rs 4,339 m reported in FY20.

This compares to a net profit of Rs 3,729 m in FY19 and a net profit of Rs 3,833 m in FY18.

Over the past 5 years, ENGINEERS INDIA net profit has grown at a CAGR of -5.7%.

What does the cash flow statement of ENGINEERS INDIA 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 ENGINEERS INDIA reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 1,714 m as compared to Rs 3,756 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 7,756 m as compared to Rs -2,294 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -9,037 m as compared to Rs -3,341 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations2,3645,9885,4903,7561,714
From Investments1,9711,647-38-2,2947,756
From Financial Activity-2,839-8,920-3,619-3,341-9,037
Net Cashflow1,496-1,2851,833-1,879433

What does the Key Ratio analysis of ENGINEERS INDIA 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 ENGINEERS INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 6.3% in FY21 as against 13.8% in FY20.
  • Net profit margins declined from 13.4% in FY20 to 8.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)19.723.315.113.86.3
Net Profit Margin (%)22.420.915.113.48.3
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of ENGINEERS INDIA

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