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ESCORTS LIMITED 2020-21 Annual Report Analysis
Wed, 31 Mar

ESCORTS LIMITED 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.

ESCORTS LIMITED Income Statement Analysis

  • Operating income during the year rose 20.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 71.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.0% in FY21 as against 11.2% in FY20.
  • Depreciation charges increased by 10.3% and finance costs decreased by 22.6% YoY, respectively.
  • Other income grew by 68.4% YoY.
  • Net profit for the year grew by 84.5% YoY.
  • Net profit margins during the year grew from 8.1% in FY20 to 12.4% in FY21.

ESCORTS LIMITED Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 58,101 70,144 20.7%
Other income Rs m 976 1,644 68.4%
Total Revenues Rs m 59,077 71,788 21.5%
Gross profit Rs m 6,532 11,228 71.9%
Depreciation Rs m 1,072 1,183 10.3%
Interest Rs m 172 133 -22.6%
Profit before tax Rs m 6,263 11,555 84.5%
Tax Rs m 1,535 2,832 84.4%
Profit after tax Rs m 4,728 8,724 84.5%
Gross profit margin % 11.2 16.0
Effective tax rate % 24.5 24.5
Net profit margin % 8.1 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ESCORTS LIMITED Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 17 billion as compared to Rs 18 billion in FY20, thereby witnessing an decrease of -4.5%.
  • Long-term debt down at Rs 17 million as compared to Rs 27 million during FY20, a fall of 36.1%.
  • Current assets rose 59% and stood at Rs 46 billion, while fixed assets rose 7% and stood at Rs 22 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 69 billion as against Rs 50 billion during FY20, thereby witnessing a growth of 37%.

ESCORTS LIMITED Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 31,103 50,070 61.0
 
Current Liabilities Rs m 17,755 16,951 -4.5
Long-term Debt Rs m 27 17 -36.1
Total Liabilities Rs m 50,140 68,782 37.2
 
Current assets Rs m 29,109 46,342 59.2
Fixed Assets Rs m 21,030 22,440 6.7
Total Assets Rs m 50,140 68,782 37.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ESCORTS LIMITED Cash Flow Statement Analysis

  • ESCORTS LIMITED's cash flow from operating activities (CFO) during FY21 stood at Rs 11 billion, an improvement of 41.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -22 billion, an improvement of 420.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 10 billion, an improvement of 434% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -632 million from the Rs 758 million net cash flows seen during FY20.

ESCORTS LIMITED 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 7,972 11,313 41.9%
Cash Flow from Investing Activities Rs m -4,212 -21,936 -
Cash Flow from Financing Activities Rs m -3,005 10,033 -
Net Cash Flow Rs m 758 -632 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ESCORTS LIMITED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.7, an improvement from the EPS of Rs 38.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,288.9, stands at 19.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.8 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 474.0 520.2
TTM Earnings per share Rs 38.6 64.7
Diluted earnings per share Rs 35.8 66.1
Price to Cash Flow x 15.1 13.8
TTM P/E ratio x 18.5 19.3
Price / Book Value ratio x 2.6 2.7
Market Cap Rs m 81,986 136,712
Dividends per share (Unadj.) Rs 2.5 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ESCORTS LIMITED

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.7x during FY21, from 1.6x 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 87.6x during FY21, from 37.4x 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 improved and stood at 17.4% during FY21, from 15.2% 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 improved and stood at 23.3% during FY21, from 20.7% 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 improved and stood at 12.9% during FY21, from 9.8% 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 1.6 2.7
Debtors’ Days Days 5 3
Interest coverage x 37.4 87.6
Debt to equity ratio x 0.0 0.0
Return on assets % 9.8 12.9
Return on equity % 15.2 17.4
Return on capital employed % 20.7 23.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ESCORTS LIMITED Share Price Performance

Over the last one year, ESCORTS LIMITED share price has moved up from Rs 663.0 to Rs 1,288.9, registering a gain of Rs 625.9 or around 94.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 22,252.2 (down 0.0%). Over the last one year it has moved up from 10,746.2 to 22,252.2, a gain of 11,506 points (up 107.1%).

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

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

Annual Report FAQs

What is the current share price of ESCORTS LIMITED?

ESCORTS LIMITED currently trades at Rs 2,778.6 per share. You can check out the latest share price performance of ESCORTS LIMITED here...

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

The revenues of ESCORTS LIMITED stood at Rs 71,788 m in FY21, which was up 21.5% compared to Rs 59,077 m reported in FY20.

ESCORTS LIMITED's revenue has grown from Rs 42,032 m in FY17 to Rs 71,788 m in FY21.

Over the past 5 years, the revenue of ESCORTS LIMITED has grown at a CAGR of 14.3%.

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

The net profit of ESCORTS LIMITED stood at Rs 8,724 m in FY21, which was up 84.5% compared to Rs 4,728 m reported in FY20.

This compares to a net profit of Rs 4,779 m in FY19 and a net profit of Rs 3,466 m in FY18.

Over the past 5 years, ESCORTS LIMITED net profit has grown at a CAGR of 60.7%.

What does the cash flow statement of ESCORTS LIMITED 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 ESCORTS LIMITED reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 11,313 m as compared to Rs 7,972 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -21,936 m as compared to Rs -4,212 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 10,033 m as compared to Rs -3,005 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations3,0384,601-2,3437,97211,313
From Investments-1,546-3,742-174-4,212-21,936
From Financial Activity-1,131-101,909-3,00510,033
Net Cashflow361849-611758-632

What does the Key Ratio analysis of ESCORTS LIMITED 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 ESCORTS LIMITED reveals:

  • Operating profit margins witnessed a fall and down at 16.0% in FY21 as against 11.2% in FY20.
  • Net profit margins grew from 8.1% in FY20 to 12.4% 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 ESCORTS LIMITED for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)5.010.511.311.216.0
Net Profit Margin (%)3.26.97.68.112.4
Debt to Equity Ratio (x)0.00.00.00.00.0

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