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FDC 2020-21 Annual Report Analysis
Wed, 31 Mar

FDC 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.

FDC Income Statement Analysis

  • Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.9% in FY21 as against 21.8% in FY20.
  • Depreciation charges increased by 0.9% and finance costs increased by 0.5% YoY, respectively.
  • Other income grew by 40.8% YoY.
  • Net profit for the year grew by 25.0% YoY.
  • Net profit margins during the year grew from 17.9% in FY20 to 22.6% in FY21.

FDC Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 13,442 13,332 -0.8%
Other income Rs m 689 970 40.8%
Total Revenues Rs m 14,131 14,302 1.2%
Gross profit Rs m 2,929 3,319 13.3%
Depreciation Rs m 375 378 0.9%
Interest Rs m 34 34 0.5%
Profit before tax Rs m 3,210 3,877 20.8%
Tax Rs m 801 865 8.1%
Profit after tax Rs m 2,409 3,012 25.0%
Gross profit margin % 21.8 24.9
Effective tax rate % 24.9 22.3
Net profit margin % 17.9 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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FDC Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 10.2%.
  • Long-term debt down at Rs 2 million as compared to Rs 3 million during FY20, a fall of 39.5%.
  • Current assets rose 9% and stood at Rs 14 billion, while fixed assets rose 10% and stood at Rs 13 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 9%.

FDC Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 15,474 17,341 12.1
 
Current Liabilities Rs m 5,646 6,223 10.2
Long-term Debt Rs m 3 2 -39.5
Total Liabilities Rs m 24,267 26,554 9.4
 
Current assets Rs m 12,454 13,521 8.6
Fixed Assets Rs m 11,813 13,033 10.3
Total Assets Rs m 24,267 26,554 9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FDC Cash Flow Statement Analysis

  • FDC's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -772 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 9% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 6 million from the Rs 100 million net cash flows seen during FY20.

FDC 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 2,504 2,071 -17.3%
Cash Flow from Investing Activities Rs m -984 -772 -
Cash Flow from Financing Activities Rs m -1,420 -1,293 -
Net Cash Flow Rs m 100 6 -94.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FDC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.8, an improvement from the EPS of Rs 14.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 285.7, stands at 16.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.2 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 78.6 79.0
TTM Earnings per share Rs 14.1 17.8
Diluted earnings per share Rs 14.3 17.8
Price to Cash Flow x 11.9 14.2
TTM P/E ratio x 13.7 16.0
Price / Book Value ratio x 2.3 2.8
Market Cap Rs m 36,007 48,026
Dividends per share (Unadj.) Rs 0.8 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FDC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY21, from 2.2x 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 113.9x during FY21, from 95.0x 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 15.6% 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 22.6% during FY21, from 21.0% 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 11.5% during FY21, from 10.1% 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 2.2 2.2
Debtors’ Days Days 336 303
Interest coverage x 95.0 113.9
Debt to equity ratio x 0.0 0.0
Return on assets % 10.1 11.5
Return on equity % 15.6 17.4
Return on capital employed % 21.0 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

FDC Share Price Performance

Over the last one year, FDC share price has moved up from Rs 196.0 to Rs 285.7, registering a gain of Rs 89.8 or around 45.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Annual Report FAQs

What is the current share price of FDC?

FDC currently trades at Rs 265.1 per share. You can check out the latest share price performance of FDC here...

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

The revenues of FDC stood at Rs 14,302 m in FY21, which was up 1.2% compared to Rs 14,131 m reported in FY20.

FDC's revenue has grown from Rs 10,270 m in FY17 to Rs 14,302 m in FY21.

Over the past 5 years, the revenue of FDC has grown at a CAGR of 8.6%.

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

The net profit of FDC stood at Rs 3,012 m in FY21, which was up 25.0% compared to Rs 2,409 m reported in FY20.

This compares to a net profit of Rs 1,718 m in FY19 and a net profit of Rs 1,740 m in FY18.

Over the past 5 years, FDC net profit has grown at a CAGR of 12.4%.

What does the cash flow statement of FDC 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 FDC reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 2,071 m as compared to Rs 2,504 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -772 m as compared to Rs -984 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -1,293 m as compared to Rs -1,420 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations1,5451,4981,1242,5042,071
From Investments-1,436201-1,203-984-772
From Financial Activity4-1,694-1-1,420-1,293
Net Cashflow10910-821006

What does the Key Ratio analysis of FDC 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 FDC reveals:

  • Operating profit margins witnessed a fall and down at 24.9% in FY21 as against 21.8% in FY20.
  • Net profit margins grew from 17.9% in FY20 to 22.6% 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 FDC for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)24.321.221.121.824.9
Net Profit Margin (%)19.316.315.817.922.6
Debt to Equity Ratio (x)0.00.00.00.00.0

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