ABM KNOWLEDGEWARE 2021-22 Annual Report Analysis

Tue, 26 Jul

ABM KNOWLEDGEWARE 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.

ABM KNOWLEDGEWARE Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY22 as against 34.4% in FY21.
• Depreciation charges increased by 20.8% and finance costs decreased by 6.1% YoY, respectively.
• Other income declined by 20.7% YoY.
• Net profit for the year declined by 35.3% YoY.
• Net profit margins during the year declined from 28.3% in FY21 to 17.3% in FY22.

ABM KNOWLEDGEWARE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	763	809	6.0%
Other income	Rs m	49	39	-20.7%
Total Revenues	Rs m	813	848	4.3%
Gross profit	Rs m	262	171	-34.7%
Depreciation	Rs m	20	25	20.8%
Interest	Rs m	5	4	-6.1%
Profit before tax	Rs m	286	181	-36.7%
Tax	Rs m	70	42	-40.9%
Profit after tax	Rs m	216	140	-35.3%
Gross profit margin	%	34.4	21.2
Effective tax rate	%	24.6	22.9
Net profit margin	%	28.3	17.3

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ABM KNOWLEDGEWARE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 401 million as compared to Rs 327 million in FY21, thereby witnessing an increase of 22.6%.
• Current assets rose 10% and stood at Rs 2 billion, while fixed assets rose 2% and stood at Rs 612 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 8%.

ABM KNOWLEDGEWARE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,879	1,999	6.4
Current Liabilities	Rs m	327	401	22.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,303	2,485	7.9
Current assets	Rs m	1,705	1,873	9.9
Fixed Assets	Rs m	598	612	2.3
Total Assets	Rs m	2,303	2,485	7.9

ABM KNOWLEDGEWARE Cash Flow Statement Analysis

• ABM KNOWLEDGEWARE's cash flow from operating activities (CFO) during FY22 stood at Rs 42 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -161 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -28 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -148 million from the Rs 316 million net cash flows seen during FY21.

ABM KNOWLEDGEWARE 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	168	42	-75.3%
Cash Flow from Investing Activities	Rs m	153	-161	-
Cash Flow from Financing Activities	Rs m	-4	-28	-
Net Cash Flow	Rs m	316	-148	-

Current Valuations for ABM KNOWLEDGEWARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an decline from the EPS of Rs 10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.3, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	38.2	40.4
TTM Earnings per share	Rs	10.8	7.0
Diluted earnings per share	Rs	10.8	7.0
Price to Cash Flow	x	9.5	14.4
TTM P/E ratio	x	10.4	12.1
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	1,797	2,374
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for ABM KNOWLEDGEWARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.7x during FY22, from 5.2x 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 41.7x during FY22, from 61.3x 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 7.0% during FY22, from 11.5% 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 9.3% during FY22, from 15.5% 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 5.8% during FY22, from 9.6% 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	5.2	4.7
Debtors’ Days	Days	1,169	1,788
Interest coverage	x	61.3	41.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	5.8
Return on equity	%	11.5	7.0
Return on capital employed	%	15.5	9.3

To see how ABM KNOWLEDGEWARE has performed over the last 5 years, please visit here.

ABM KNOWLEDGEWARE Share Price Performance

Over the last one year, ABM KNOWLEDGEWARE share price has moved down from Rs 145.4 to Rs 84.3, registering a loss of Rs 61.1 or around 42.0%.

Overall, the S&P BSE SENSEX is up 5.2% over the year.

(To know more, check out historical annual results for ABM KNOWLEDGEWARE and quarterly results for ABM KNOWLEDGEWARE)