INDO COUNT 2020-21 Annual Report Analysis

Wed, 31 Mar

INDO COUNT 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.

INDO COUNT Income Statement Analysis

• Operating income during the year rose 21.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 340.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY21 as against 4.1% in FY20.
• Depreciation charges decreased by 0.7% and finance costs decreased by 28.5% YoY, respectively.
• Other income declined by 30.8% YoY.
• Net profit for the year grew by 240.8% YoY.
• Net profit margins during the year grew from 3.5% in FY20 to 9.9% in FY21.

INDO COUNT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,801	25,192	21.1%
Other income	Rs m	546	378	-30.8%
Total Revenues	Rs m	21,348	25,570	19.8%
Gross profit	Rs m	847	3,730	340.2%
Depreciation	Rs m	435	431	-0.7%
Interest	Rs m	392	281	-28.5%
Profit before tax	Rs m	567	3,396	499.2%
Tax	Rs m	-164	905	-651.2%
Profit after tax	Rs m	731	2,491	240.8%
Gross profit margin	%	4.1	14.8
Effective tax rate	%	-29.0	26.6
Net profit margin	%	3.5	9.9

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INDO COUNT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 51.9%.
• Long-term debt down at Rs 194 million as compared to Rs 361 million during FY20, a fall of 46.4%.
• Current assets rose 55% and stood at Rs 17 billion, while fixed assets fell 2% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 23 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 35%.

INDO COUNT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,860	12,846	30.3
Current Liabilities	Rs m	5,889	8,945	51.9
Long-term Debt	Rs m	361	194	-46.4
Total Liabilities	Rs m	16,957	22,955	35.4
Current assets	Rs m	11,049	17,146	55.2
Fixed Assets	Rs m	5,904	5,808	-1.6
Total Assets	Rs m	16,957	22,955	35.4

INDO COUNT Cash Flow Statement Analysis

• INDO COUNT's cash flow from operating activities (CFO) during FY21 stood at Rs -163 million 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 2 billion, an improvement of 568% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -196 million from the Rs 1 billion net cash flows seen during FY20.

INDO COUNT 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	1,398	-163	-
Cash Flow from Investing Activities	Rs m	161	-1,887	-
Cash Flow from Financing Activities	Rs m	-396	1,854	-
Net Cash Flow	Rs m	1,162	-196	-

Current Valuations for INDO COUNT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.6, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 132.1, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	105.4	127.6
TTM Earnings per share	Rs	3.7	12.6
Diluted earnings per share	Rs	3.7	12.6
Price to Cash Flow	x	4.0	6.6
TTM P/E ratio	x	6.4	10.5
Price / Book Value ratio	x	0.9	1.5
Market Cap	Rs m	8,779	19,227
Dividends per share (Unadj.)	Rs	0.6	1.5

Ratio Analysis for INDO COUNT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.9x 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 13.1x during FY21, from 2.4x 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 19.4% during FY21, from 7.4% 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 28.2% during FY21, from 9.4% 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 12.1% during FY21, from 6.6% 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	1.9	1.9
Debtors’ Days	Days	425	747
Interest coverage	x	2.4	13.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	12.1
Return on equity	%	7.4	19.4
Return on capital employed	%	9.4	28.2

To see how INDO COUNT has performed over the last 5 years, please visit here.

INDO COUNT Share Price Performance

Over the last one year, INDO COUNT share price has moved up from Rs 23.9 to Rs 132.1, registering a gain of Rs 108.3 or around 453.9%.

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

(To know more, check out historical annual results for INDO COUNT and quarterly results for INDO COUNT)

Read: Latest Annual Report Analysis of INDO COUNT