HINDUJA GLOBAL 2020-21 Annual Report Analysis

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HINDUJA GLOBAL 2020-21 Annual Report Analysis
Mon, 8 Nov

HINDUJA GLOBAL 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.

HINDUJA GLOBAL Income Statement Analysis

  • Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY21 as against 13.1% in FY20.
  • Depreciation charges decreased by 6.8% and finance costs decreased by 14.4% YoY, respectively.
  • Other income declined by 15.6% YoY.
  • Net profit for the year grew by 63.4% YoY.
  • Net profit margins during the year grew from 3.9% in FY20 to 5.9% in FY21.

HINDUJA GLOBAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 52,257 55,889 7.0%
Other income Rs m 966 816 -15.6%
Total Revenues Rs m 53,223 56,705 6.5%
Gross profit Rs m 6,857 7,582 10.6%
Depreciation Rs m 3,300 3,075 -6.8%
Interest Rs m 1,032 883 -14.4%
Profit before tax Rs m 3,492 4,440 27.1%
Tax Rs m 1,436 1,079 -24.8%
Profit after tax Rs m 2,056 3,361 63.4%
Gross profit margin % 13.1 13.6
Effective tax rate % 41.1 24.3
Net profit margin % 3.9 5.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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HINDUJA GLOBAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 13 billion as compared to Rs 12 billion in FY20, thereby witnessing an increase of 8.2%.
  • Long-term debt down at Rs 9 billion as compared to Rs 10 billion during FY20, a fall of 17.0%.
  • Current assets rose 22% and stood at Rs 26 billion, while fixed assets fell 2% and stood at Rs 23 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 49 billion as against Rs 44 billion during FY20, thereby witnessing a growth of 9%.

HINDUJA GLOBAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 17,189 20,842 21.3
 
Current Liabilities Rs m 11,820 12,794 8.2
Long-term Debt Rs m 10,311 8,559 -17.0
Total Liabilities Rs m 44,466 48,672 9.5
 
Current assets Rs m 21,415 26,103 21.9
Fixed Assets Rs m 23,051 22,569 -2.1
Total Assets Rs m 44,466 48,672 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HINDUJA GLOBAL Cash Flow Statement Analysis

  • HINDUJA GLOBAL's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -8 million from the Rs 2 billion net cash flows seen during FY20.

HINDUJA GLOBAL 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 8,837 6,916 -21.7%
Cash Flow from Investing Activities Rs m -4,040 -2,092 -
Cash Flow from Financing Activities Rs m -3,098 -4,757 -
Net Cash Flow Rs m 2,076 -8 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HINDUJA GLOBAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 160.9, an improvement from the EPS of Rs 98.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,811.0, stands at 14.5 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 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.1 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 2,503.9 2,676.7
TTM Earnings per share Rs 98.5 160.9
Diluted earnings per share Rs 98.5 160.9
Price to Cash Flow x 11.0 9.1
TTM P/E ratio x 14.5 14.5
Price / Book Value ratio x 0.9 1.2
Market Cap Rs m 58,654 58,696
Dividends per share (Unadj.) Rs 20.0 40.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HINDUJA GLOBAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.8x 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 6.0x during FY21, from 4.4x 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 16.1% during FY21, from 12.0% 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 18.1% during FY21, from 16.4% 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 8.7% during FY21, from 6.9% 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 1.8 2.0
Debtors’ Days Days 691 804
Interest coverage x 4.4 6.0
Debt to equity ratio x 0.6 0.4
Return on assets % 6.9 8.7
Return on equity % 12.0 16.1
Return on capital employed % 16.4 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HINDUJA GLOBAL Share Price Performance

Over the last one year, HINDUJA GLOBAL share price has moved up from Rs 715.6 to Rs 2,811.0, registering a gain of Rs 2,095.4 or around 292.8%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

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

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