ENDURANCE TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

ENDURANCE TECHNOLOGIES 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.

ENDURANCE TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 5.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY21 as against 16.3% in FY20.
• Depreciation charges decreased by 3.7% and finance costs decreased by 21.6% YoY, respectively.
• Other income declined by 35.5% YoY.
• Net profit for the year declined by 8.1% YoY.
• Net profit margins during the year declined from 8.2% in FY20 to 7.9% in FY21.

ENDURANCE TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	69,177	65,470	-5.4%
Other income	Rs m	476	307	-35.5%
Total Revenues	Rs m	69,653	65,777	-5.6%
Gross profit	Rs m	11,308	10,290	-9.0%
Depreciation	Rs m	4,143	3,991	-3.7%
Interest	Rs m	175	138	-21.6%
Profit before tax	Rs m	7,465	6,468	-13.4%
Tax	Rs m	1,810	1,272	-29.7%
Profit after tax	Rs m	5,655	5,196	-8.1%
Gross profit margin	%	16.3	15.7
Effective tax rate	%	24.2	19.7
Net profit margin	%	8.2	7.9

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ENDURANCE TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 17 billion as compared to Rs 16 billion in FY20, thereby witnessing an increase of 10.2%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY20, a fall of 5.7%.
• Current assets rose 35% and stood at Rs 29 billion, while fixed assets fell 4% and stood at Rs 28 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 57 billion as against Rs 50 billion during FY20, thereby witnessing a growth of 13%.

ENDURANCE TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	30,060	35,621	18.5
Current Liabilities	Rs m	15,644	17,234	10.2
Long-term Debt	Rs m	4,021	3,792	-5.7
Total Liabilities	Rs m	50,378	56,873	12.9
Current assets	Rs m	21,476	29,042	35.2
Fixed Assets	Rs m	28,903	27,831	-3.7
Total Assets	Rs m	50,378	56,873	12.9

ENDURANCE TECHNOLOGIES Cash Flow Statement Analysis

• ENDURANCE TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 832 million net cash flows seen during FY20.

ENDURANCE TECHNOLOGIES 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	10,114	6,215	-38.6%
Cash Flow from Investing Activities	Rs m	-6,706	-5,906	-
Cash Flow from Financing Activities	Rs m	-2,576	-1,430	-
Net Cash Flow	Rs m	832	-1,076	-

Current Valuations for ENDURANCE TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.9, an decline from the EPS of Rs 40.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,453.4, stands at 39.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	491.8	465.4
TTM Earnings per share	Rs	40.2	36.9
Diluted earnings per share	Rs	40.2	36.9
Price to Cash Flow	x	8.6	16.1
TTM P/E ratio	x	14.9	39.3
Price / Book Value ratio	x	4.2	4.2
Market Cap	Rs m	127,089	147,837
Dividends per share (Unadj.)	Rs	5.5	6.0

Ratio Analysis for ENDURANCE TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x 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 48.0x during FY21, from 43.6x 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 14.6% during FY21, from 18.8% 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 declined and down at 16.8% during FY21, from 22.4% 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 9.4% during FY21, from 11.6% 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	1.4	1.7
Debtors’ Days	Days	35	58
Interest coverage	x	43.6	48.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.6	9.4
Return on equity	%	18.8	14.6
Return on capital employed	%	22.4	16.8

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

ENDURANCE TECHNOLOGIES Share Price Performance

Over the last one year, ENDURANCE TECHNOLOGIES share price has moved up from Rs 599.5 to Rs 1,453.4, registering a gain of Rs 853.9 or around 142.4%.

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

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

Read: Latest Annual Report Analysis of ENDURANCE TECHNOLOGIES