ESCORTS LIMITED 2021-22 Annual Report Analysis

Sat, 25 Jun

ESCORTS LIMITED has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ESCORTS LIMITED Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.1% in FY22 as against 16.0% in FY21.
• Depreciation charges increased by 11.7% and finance costs increased by 12.2% YoY, respectively.
• Other income grew by 32.8% YoY.
• Net profit for the year declined by 12.3% YoY.
• Net profit margins during the year declined from 12.4% in FY21 to 10.6% in FY22.

ESCORTS LIMITED Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	70,144	72,384	3.2%
Other income	Rs m	1,644	2,183	32.8%
Total Revenues	Rs m	71,788	74,568	3.9%
Gross profit	Rs m	11,228	9,509	-15.3%
Depreciation	Rs m	1,183	1,321	11.7%
Interest	Rs m	133	150	12.2%
Profit before tax	Rs m	11,555	10,222	-11.5%
Tax	Rs m	2,832	2,572	-9.2%
Profit after tax	Rs m	8,724	7,650	-12.3%
Gross profit margin	%	16.0	13.1
Effective tax rate	%	24.5	25.2
Net profit margin	%	12.4	10.6

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ESCORTS LIMITED Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 14 billion as compared to Rs 17 billion in FY21, thereby witnessing an decrease of -20.0%.
• Current assets rose 47% and stood at Rs 68 billion, while fixed assets rose 2% and stood at Rs 23 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 91 billion as against Rs 69 billion during FY21, thereby witnessing a growth of 32%.

ESCORTS LIMITED Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	50,070	75,857	51.5
Current Liabilities	Rs m	16,951	13,555	-20.0
Long-term Debt	Rs m	17	0	-100.0
Total Liabilities	Rs m	68,782	91,077	32.4
Current assets	Rs m	46,342	68,162	47.1
Fixed Assets	Rs m	22,440	22,915	2.1
Total Assets	Rs m	68,782	91,077	32.4

ESCORTS LIMITED Cash Flow Statement Analysis

• ESCORTS LIMITED's cash flow from operating activities (CFO) during FY22 stood at Rs 323 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -19 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 18 billion, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -142 million from the Rs -632 million net cash flows seen during FY21.

ESCORTS LIMITED Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	11,287	323	-97.1%
Cash Flow from Investing Activities	Rs m	-21,910	-18,567	-
Cash Flow from Financing Activities	Rs m	10,033	18,099	80.4%
Net Cash Flow	Rs m	-632	-142	-

Current Valuations for ESCORTS LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.0, an decline from the EPS of Rs 64.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,518.9, stands at 26.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	520.2	548.6
TTM Earnings per share	Rs	64.7	58.0
Diluted earnings per share	Rs	66.1	58.0
Price to Cash Flow	x	17.2	22.3
TTM P/E ratio	x	19.3	26.4
Price / Book Value ratio	x	2.7	2.6
Market Cap	Rs m	136,712	199,722
Dividends per share (Unadj.)	Rs	7.5	7.0

Ratio Analysis for ESCORTS LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY22, from 2.7x during FY21. 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 69.3x during FY22, from 87.6x during FY21. 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 FY22, from 17.4% during FY22. 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 13.7% during FY22, from 23.3% during FY21. 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 8.6% during FY22, from 12.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.7	5.0
Debtors’ Days	Days	3	4
Interest coverage	x	87.6	69.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	8.6
Return on equity	%	17.4	10.1
Return on capital employed	%	23.3	13.7

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 1,182.1 to Rs 1,518.9, registering a gain of Rs 336.8 or around 28.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 26,425.4 (up 2.0%). Over the last one year it has moved up from 23,967.2 to 26,425.4, a gain of 2,458 points (up 10.3%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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

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