YAARII DIGITAL INTEGRATED 2020-21 Annual Report Analysis

Wed, 31 Mar

YAARII DIGITAL INTEGRATED 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.

YAARII DIGITAL INTEGRATED Income Statement Analysis

• Operating income during the year fell 25.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 100.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.1% in FY21 as against 100.9% in FY20.
• Depreciation charges decreased by 9.7% and finance costs decreased by 3.9% YoY, respectively.
• Other income declined by 35.7% YoY.
• Net profit for the year declined by 70.1% YoY.
• Net profit margins during the year grew from 130.0% in FY20 to 52.0% in FY21.

YAARII DIGITAL INTEGRATED Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,255	1,685	-25.3%
Other income	Rs m	1,226	788	-35.7%
Total Revenues	Rs m	3,480	2,472	-29.0%
Gross profit	Rs m	-2,275	2	-100.1%
Depreciation	Rs m	321	290	-9.7%
Interest	Rs m	1,297	1,247	-3.9%
Profit before tax	Rs m	-2,667	-747	-72.0%
Tax	Rs m	264	129	-51.2%
Profit after tax	Rs m	-2,932	-877	-70.1%
Gross profit margin	%	-100.9	0.1
Effective tax rate	%	-9.9	-17.3
Net profit margin	%	-130.0	-52.0

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YAARII DIGITAL INTEGRATED Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 10 billion as compared to Rs 12 billion in FY20, thereby witnessing an decrease of -16.3%.
• Long-term debt stood at Rs 680 million as compared to Rs 259 million during FY20, a growth of 162.6%.
• Current assets fell 2% and stood at Rs 8 billion, while fixed assets fell 5% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 17 billion during FY20, thereby witnessing a fall of 4%.

YAARII DIGITAL INTEGRATED Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,082	4,117	33.6
Current Liabilities	Rs m	12,478	10,441	-16.3
Long-term Debt	Rs m	259	680	162.6
Total Liabilities	Rs m	16,839	16,249	-3.5
Current assets	Rs m	8,609	8,421	-2.2
Fixed Assets	Rs m	8,230	7,828	-4.9
Total Assets	Rs m	16,839	16,249	-3.5

YAARII DIGITAL INTEGRATED Cash Flow Statement Analysis

• YAARII DIGITAL INTEGRATED's cash flow from operating activities (CFO) during FY21 stood at Rs 8 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 -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 161 million from the Rs -5 million net cash flows seen during FY20.

YAARII DIGITAL INTEGRATED 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	-2,185	8,413	-
Cash Flow from Investing Activities	Rs m	-4,987	1,792	-
Cash Flow from Financing Activities	Rs m	7,167	-10,044	-
Net Cash Flow	Rs m	-5	161	-

Current Valuations for YAARII DIGITAL INTEGRATED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -10.0, an improvement from the EPS of Rs -32.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.8, stands at -12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at -16.0 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	25.2	19.2
TTM Earnings per share	Rs	-32.8	-10.0
Diluted earnings per share	Rs	-32.8	-9.8
Price to Cash Flow	x	-1.5	-16.0
TTM P/E ratio	x	-1.3	-12.1
Price / Book Value ratio	x	6.1	2.3
Market Cap	Rs m	18,703	9,368
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for YAARII DIGITAL INTEGRATED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY21, from 0.7x 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 0.4x during FY21, from -1.1x 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 -21.3% during FY21, from -95.1% 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 10.4% during FY21, from -41.0% 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 2.3% during FY21, from -9.7% 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	0.7	0.8
Debtors’ Days	Days	13	18
Interest coverage	x	-1.1	0.4
Debt to equity ratio	x	0.1	0.2
Return on assets	%	-9.7	2.3
Return on equity	%	-95.1	-21.3
Return on capital employed	%	-41.0	10.4

To see how YAARII DIGITAL INTEGRATED has performed over the last 5 years, please visit here.

YAARII DIGITAL INTEGRATED Share Price Performance

Over the last one year, YAARII DIGITAL INTEGRATED share price has moved up from Rs 42.8 to Rs 118.8, registering a gain of Rs 76.0 or around 177.8%.

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

(To know more, check out historical annual results for YAARII DIGITAL INTEGRATED and quarterly results for YAARII DIGITAL INTEGRATED)