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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

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
* 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 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 -
* 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 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
* 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 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
* 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 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)

Annual Report FAQs

What is the current share price of ESCORTS LIMITED?

ESCORTS LIMITED currently trades at Rs 1,679.9 per share. You can check out the latest share price performance of ESCORTS LIMITED here...

What was the revenue of ESCORTS LIMITED in FY22? How does it compare to earlier years?

The revenues of ESCORTS LIMITED stood at Rs 74,568 m in FY22, which was up 3.9% compared to Rs 71,788 m reported in FY21.

ESCORTS LIMITED's revenue has grown from Rs 51,289 m in FY18 to Rs 74,568 m in FY22.

Over the past 5 years, the revenue of ESCORTS LIMITED has grown at a CAGR of 9.8%.

What was the net profit of ESCORTS LIMITED in FY22? How does it compare to earlier years?

The net profit of ESCORTS LIMITED stood at Rs 7,650 m in FY22, which was down -12.3% compared to Rs 8,724 m reported in FY21.

This compares to a net profit of Rs 4,728 m in FY20 and a net profit of Rs 4,779 m in FY19.

Over the past 5 years, ESCORTS LIMITED net profit has grown at a CAGR of 21.9%.

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 decreased in FY22 and stood at Rs 323 m as compared to Rs 11,287 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -18,567 m as compared to Rs -21,910 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 18,099 m as compared to Rs 10,033 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations4,601-2,3437,97211,287323
From Investments-3,742-174-4,212-21,910-18,567
From Financial Activity-101,909-3,00510,03318,099
Net Cashflow849-611758-632-142

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 stood at 13.1% in FY22 as against 16.0% in FY21.
  • Net profit margins declined from 12.4% in FY21 to 10.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of ESCORTS LIMITED for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.511.311.216.013.1
Net Profit Margin (%)6.97.68.112.410.6
Debt to Equity Ratio (x)0.00.00.00.00.0

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