ICRA 2020-21 Annual Report Analysis

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ICRA 2020-21 Annual Report Analysis
Thu, 28 Oct

ICRA 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.

ICRA Income Statement Analysis

  • Operating income during the year fell 6.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY21 as against 29.8% in FY20.
  • Depreciation charges decreased by 3.6% and finance costs increased by 0.6% YoY, respectively.
  • Other income declined by 10.7% YoY.
  • Net profit for the year declined by 15.0% YoY.
  • Net profit margins during the year declined from 26.3% in FY20 to 24.0% in FY21.

ICRA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 3,211 3,011 -6.2%
Other income Rs m 480 428 -10.7%
Total Revenues Rs m 3,691 3,439 -6.8%
Gross profit Rs m 958 811 -15.3%
Depreciation Rs m 103 99 -3.6%
Interest Rs m 20 21 0.6%
Profit before tax Rs m 1,315 1,120 -14.8%
Tax Rs m 342 293 -14.4%
Profit after tax Rs m 972 827 -15.0%
Gross profit margin % 29.8 26.9
Effective tax rate % 26.0 26.2
Net profit margin % 26.3 24.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ICRA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 1.0%.
  • Current assets fell 31% and stood at Rs 5 billion, while fixed assets rose 232% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 6%.

ICRA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,016 7,577 8.0
 
Current Liabilities Rs m 1,150 1,161 1.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 8,391 8,902 6.1
 
Current assets Rs m 7,202 4,950 -31.3
Fixed Assets Rs m 1,189 3,953 232.3
Total Assets Rs m 8,391 8,902 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ICRA Cash Flow Statement Analysis

  • ICRA's cash flow from operating activities (CFO) during FY21 stood at Rs 764 million, an improvement of 258.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -321 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -320 million, an improvement of 21% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 122 million from the Rs -82 million net cash flows seen during FY20.

ICRA 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 213 764 258.3%
Cash Flow from Investing Activities Rs m 111 -321 -
Cash Flow from Financing Activities Rs m -407 -320 -
Net Cash Flow Rs m -82 122 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ICRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.7, an decline from the EPS of Rs 100.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,545.8, stands at 35.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 9.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.0 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 332.7 312.0
TTM Earnings per share Rs 100.8 85.7
Diluted earnings per share Rs 100.8 85.7
Price to Cash Flow x 31.8 37.0
TTM P/E ratio x 35.8 35.8
Price / Book Value ratio x 3.6 3.8
Market Cap Rs m 34,221 34,221
Dividends per share (Unadj.) Rs 27.0 27.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ICRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY21, from 6.3x 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 55.5x during FY21, from 65.3x 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 10.9% during FY21, from 13.9% 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 declined and down at 15.1% during FY21, from 19.0% 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 declined and down at 9.5% during FY21, from 11.8% 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 6.3 4.3
Debtors’ Days Days 650 576
Interest coverage x 65.3 55.5
Debt to equity ratio x 0.0 0.0
Return on assets % 11.8 9.5
Return on equity % 13.9 10.9
Return on capital employed % 19.0 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ICRA Share Price Performance

Over the last one year, ICRA share price has moved up from Rs 2,670.0 to Rs 3,545.8, registering a gain of Rs 875.8 or around 32.8%.

Overall, the S&P BSE SENSEX is up 49.4% over the year.

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

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Related Views on News

ICRA 2019-20 Annual Report Analysis (Annual Result Update)

Dec 1, 2020 | Updated on Dec 1, 2020

Here's an analysis of the annual report of ICRA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of ICRA. Also includes updates on the valuation of ICRA.

ICRA LTD Announces Quarterly Results (3QFY20); Net Profit Down 14.9% (Quarterly Result Update)

Feb 11, 2020 | Updated on Feb 11, 2020

For the quarter ended December 2019, ICRA LTD has posted a net profit of Rs 225 m (down 14.9% YoY). Sales on the other hand came in at Rs 794 m (down 6.3% YoY). Read on for a complete analysis of ICRA LTD's quarterly results.

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