HINDUJA GLOBAL 2020-21 Annual Report Analysis

Wed, 31 Mar

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 6.0% 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	6.0

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

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

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	-

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 1,720.3, stands at 31.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 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	49.2	80.4
Price to Cash Flow	x	3.9	3.8
TTM P/E ratio	x	11.2	31.0
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	14,817	24,265
Dividends per share (Unadj.)	Rs	20.0	40.0

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

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 500.1 to Rs 1,720.3, registering a gain of Rs 1,220.2 or around 244.0%.

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

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

Read: Latest Annual Report Analysis of HINDUJA GLOBAL