Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


HCL INFOSYS 2020-21 Annual Report Analysis
Wed, 31 Mar

HCL INFOSYS 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.

HCL INFOSYS Income Statement Analysis

  • Operating income during the year fell 83.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 607.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 70.4% in FY21 as against 1.7% in FY20.
  • Depreciation charges decreased by 76.4% and finance costs decreased by 44.0% YoY, respectively.
  • Other income grew by 42.3% YoY.
  • Net profit for the year grew by 44.3% YoY.
  • Net profit margins during the year declined from 6.6% in FY20 to 55.8% in FY21.

HCL INFOSYS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 20,793 3,528 -83.0%
Other income Rs m 796 1,133 42.3%
Total Revenues Rs m 21,589 4,660 -78.4%
Gross profit Rs m -351 -2,482 607.3%
Depreciation Rs m 181 43 -76.4%
Interest Rs m 992 556 -44.0%
Profit before tax Rs m -728 -1,948 167.6%
Tax Rs m 636 20 -96.9%
Profit after tax Rs m -1,363 -1,967 44.3%
Gross profit margin % -1.7 -70.4
Effective tax rate % -87.3 -1.0
Net profit margin % -6.6 -55.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HCL INFOSYS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 8 billion as compared to Rs 11 billion in FY20, thereby witnessing an decrease of -21.9%.
  • Long-term debt stood at Rs 590 million as compared to Rs 228 million during FY20, a growth of 159.5%.
  • Current assets fell 51% and stood at Rs 3 billion, while fixed assets fell 17% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 11 billion during FY20, thereby witnessing a fall of 36%.

HCL INFOSYS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m -421 -2,401 469.7
 
Current Liabilities Rs m 10,603 8,279 -21.9
Long-term Debt Rs m 228 590 159.5
Total Liabilities Rs m 10,955 6,976 -36.3
 
Current assets Rs m 6,306 3,116 -50.6
Fixed Assets Rs m 4,649 3,859 -17.0
Total Assets Rs m 10,955 6,976 -36.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HCL INFOSYS Cash Flow Statement Analysis

  • HCL INFOSYS's cash flow from operating activities (CFO) during FY21 stood at Rs -148 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 204 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -222 million, an improvement of 95% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -164 million from the Rs -352 million net cash flows seen during FY20.

HCL INFOSYS 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 621 -148 -
Cash Flow from Investing Activities Rs m 3,931 204 -94.8%
Cash Flow from Financing Activities Rs m -4,900 -222 -
Net Cash Flow Rs m -352 -164 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HCL INFOSYS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.0, an decline from the EPS of Rs -4.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 8.9, stands at -1.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -1.2 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.4 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 63.2 10.7
TTM Earnings per share Rs -4.1 -6.0
Diluted earnings per share Rs -4.1 -6.0
Price to Cash Flow x -1.0 -1.4
TTM P/E ratio x -0.4 -1.5
Price / Book Value ratio x -8.9 -1.1
Market Cap Rs m 3,769 2,635
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HCL INFOSYS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY21, from 0.6x 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 deteriorated and stood at -2.5x during FY21, from 0.3x 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 declined and down at 81.9% during FY21, from 323.5% 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 76.9% during FY21, from -136.1% 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 declined and down at -20.2% during FY21, from -3.4% 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 0.6 0.4
Debtors’ Days Days 3 9
Interest coverage x 0.3 -2.5
Debt to equity ratio x -0.5 -0.2
Return on assets % -3.4 -20.2
Return on equity % 323.5 81.9
Return on capital employed % -136.1 76.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HCL INFOSYS Share Price Performance

Over the last one year, HCL INFOSYS share price has moved up from Rs 3.7 to Rs 8.9, registering a gain of Rs 5.2 or around 138.1%.

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

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

Annual Report FAQs

What is the current share price of HCL INFOSYS?

HCL INFOSYS currently trades at Rs 16.9 per share. You can check out the latest share price performance of HCL INFOSYS here...

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

The revenues of HCL INFOSYS stood at Rs 4,660 m in FY21, which was down -78.4% compared to Rs 21,589 m reported in FY20.

HCL INFOSYS' revenue has fallen from Rs 33,710 m in FY17 to Rs 4,660 m in FY21.

Over the past 5 years, the revenue of HCL INFOSYS has grown at a CAGR of -39.0%.

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

The net loss of HCL INFOSYS stood at Rs -1,967 m in FY21, which was up 44.3% compared to Rs -1,363 m reported in FY20.

This compares to a net loss of Rs -1,352 m in FY19 and a net loss of Rs -8,138 m in FY18.

Over the past 5 years, HCL INFOSYS net profit has grown at a CAGR of -5.6%.

What does the cash flow statement of HCL INFOSYS 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 HCL INFOSYS reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -148 m as compared to Rs 621 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs 204 m as compared to Rs 3,931 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -222 m as compared to Rs -4,900 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations773-3,5084,406621-148
From Investments-279211123,931204
From Financial Activity-1,3542,347-4,771-4,900-222
Net Cashflow-608-223-254-352-164

What does the Key Ratio analysis of HCL INFOSYS 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 HCL INFOSYS reveals:

  • Operating profit margins witnessed a growth and stood at 70.4% in FY21 as against 1.7% in FY20.
  • Net profit margins declined from 6.6% in FY20 to 55.8% in FY21.
  • Debt to Equity ratio for FY21 stood at -0.2 as compared to -0.5 in FY20.

Here's the ratio/financial analysis of HCL INFOSYS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)-7.6-18.5-1.7-1.7-70.4
Net Profit Margin (%)-7.7-22.8-3.1-6.6-55.8
Debt to Equity Ratio (x)0.80.71.0-0.5-0.2

Read: Latest Annual Report Analysis of HCL INFOSYS

Equitymaster requests your view! Post a comment on "HCL INFOSYS 2020-21 Annual Report Analysis". Click here!