MAHINDRA LIFESPACE 2020-21 Annual Report Analysis

Wed, 31 Mar

MAHINDRA LIFESPACE 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.

MAHINDRA LIFESPACE Income Statement Analysis

• Operating income during the year fell 72.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 51.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 56.2% in FY21 as against 31.3% in FY20.
• Depreciation charges decreased by 9.3% and finance costs increased by 43.7% YoY, respectively.
• Other income declined by 38.3% YoY.
• Net profit for the year declined by 50.9% YoY.
• Net profit margins during the year declined from 27.8% in FY20 to 50.3% in FY21.

MAHINDRA LIFESPACE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,109	1,662	-72.8%
Other income	Rs m	350	216	-38.3%
Total Revenues	Rs m	6,459	1,878	-70.9%
Gross profit	Rs m	-1,914	-935	-51.1%
Depreciation	Rs m	77	70	-9.3%
Interest	Rs m	76	110	43.7%
Profit before tax	Rs m	-1,718	-899	-47.7%
Tax	Rs m	-17	-63	273.5%
Profit after tax	Rs m	-1,701	-836	-50.9%
Gross profit margin	%	-31.3	-56.2
Effective tax rate	%	1.0	7.0
Net profit margin	%	-27.8	-50.3

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MAHINDRA LIFESPACE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 13.3%.
• Long-term debt stood at Rs 752 million as compared to Rs 629 million during FY20, a growth of 19.6%.
• Current assets rose 2% and stood at Rs 18 billion, while fixed assets fell 0% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 25 billion during FY20, thereby witnessing a growth of 1%.

MAHINDRA LIFESPACE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	16,965	16,257	-4.2
Current Liabilities	Rs m	7,213	8,174	13.3
Long-term Debt	Rs m	629	752	19.6
Total Liabilities	Rs m	25,417	25,701	1.1
Current assets	Rs m	18,059	18,359	1.7
Fixed Assets	Rs m	7,358	7,342	-0.2
Total Assets	Rs m	25,417	25,701	1.1

MAHINDRA LIFESPACE Cash Flow Statement Analysis

• MAHINDRA LIFESPACE 's cash flow from operating activities (CFO) during FY21 stood at Rs -680 million, an improvement of 8.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 1 billion, an improvement of 25.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -198 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 226 million from the Rs -421 million net cash flows seen during FY20.

MAHINDRA LIFESPACE 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	-628	-680	-
Cash Flow from Investing Activities	Rs m	881	1,104	25.4%
Cash Flow from Financing Activities	Rs m	-674	-198	-
Net Cash Flow	Rs m	-421	226	-

Current Valuations for MAHINDRA LIFESPACE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.3, an improvement from the EPS of Rs -33.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 569.6, stands at -105.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 17.6 times.
• The company's price to cash flow (P/CF) ratio stood at -25.0 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	119.0	32.4
TTM Earnings per share	Rs	-33.1	-16.3
Diluted earnings per share	Rs	-11.0	-5.4
Price to Cash Flow	x	-18.2	-25.0
TTM P/E ratio	x	-17.3	-105.3
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	16,320	19,120
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAHINDRA LIFESPACE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY21, from 2.5x 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 -7.2x during FY21, from -21.5x 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 -5.1% during FY21, from -10.0% 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 -4.6% during FY21, from -9.3% 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 -2.8% during FY21, from -6.4% 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	2.5	2.2
Debtors’ Days	Days	683	1,239
Interest coverage	x	-21.5	-7.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-6.4	-2.8
Return on equity	%	-10.0	-5.1
Return on capital employed	%	-9.3	-4.6

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

MAHINDRA LIFESPACE Share Price Performance

Over the last one year, MAHINDRA LIFESPACE share price has moved up from Rs 190.8 to Rs 569.6, registering a gain of Rs 378.8 or around 198.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

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

Read: Latest Annual Report Analysis of MAHINDRA LIFESPACE