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INOX LEISURE 2019-20 Annual Report Analysis
Tue, 31 Mar

INOX LEISURE has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

INOX LEISURE Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 96.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.5% in FY20 as against 17.9% in FY19.
  • Depreciation charges increased by 176.7% and finance costs increased by 834.5% YoY, respectively.
  • Other income grew by 15.1% YoY.
  • Net profit for the year declined by 88.8% YoY.
  • Net profit margins during the year declined from 7.9% in FY19 to 0.8% in FY20.

INOX LEISURE Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 16,922 18,974 12.1%
Other income Rs m 149 172 15.1%
Total Revenues Rs m 17,071 19,146 12.2%
Gross profit Rs m 3,033 5,968 96.8%
Depreciation Rs m 955 2,642 176.7%
Interest Rs m 237 2,212 834.5%
Profit before tax Rs m 1,991 1,286 -35.4%
Tax Rs m 656 1,136 73.1%
Profit after tax Rs m 1,335 150 -88.8%
Gross profit margin % 17.9 31.5
Effective tax rate % 33.0 88.3
Net profit margin % 7.9 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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INOX LEISURE Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 5 billion as compared to Rs 4 billion in FY19, thereby witnessing an increase of 32.5%.
  • Long-term debt down at Rs 200 million as compared to Rs 550 million during FY19, a fall of 63.6%.
  • Current assets rose 15% and stood at Rs 2 billion, while fixed assets rose 172% and stood at Rs 35 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 36 billion as against Rs 14 billion during FY19, thereby witnessing a growth of 155%.

INOX LEISURE Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 9,945 6,531 -34.3
 
Current Liabilities Rs m 3,693 4,895 32.5
Long-term Debt Rs m 550 200 -63.6
Total Liabilities Rs m 14,259 36,381 155.1
 
Current assets Rs m 1,513 1,743 15.2
Fixed Assets Rs m 12,746 34,639 171.8
Total Assets Rs m 14,259 36,381 155.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INOX LEISURE Cash Flow Statement Analysis

  • INOX LEISURE's cash flow from operating activities (CFO) during FY20 stood at Rs 5 billion, an improvement of 69.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 284 million from the Rs -16 million net cash flows seen during FY19.

INOX LEISURE Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 2,797 4,742 69.6%
Cash Flow from Investing Activities Rs m -2,356 -2,130 -
Cash Flow from Financing Activities Rs m -456 -2,328 -
Net Cash Flow Rs m -16 284 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INOX LEISURE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an decline from the EPS of Rs 13.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 262.3, stands at 213.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 164.9 184.8
TTM Earnings per share Rs 13.0 1.5
Diluted earnings per share Rs 10.9 1.2
Price to Cash Flow x 17.6 13.6
TTM P/E ratio x 30.1 213.9
Price / Book Value ratio x 2.7 5.8
Market Cap Rs m 27,268 38,082
Dividends per share (Unadj.) Rs 0.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INOX LEISURE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY20, from 0.4x during FY19. 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 1.6x during FY20, from 9.4x during FY19. 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 2.3% during FY20, from 13.4% during FY20. 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 52.0% during FY20, from 21.2% during FY19. 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 6.5% during FY20, from 11.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.4 0.4
Debtors’ Days Days 190 121
Interest coverage x 9.4 1.6
Debt to equity ratio x 0.1 0.0
Return on assets % 11.0 6.5
Return on equity % 13.4 2.3
Return on capital employed % 21.2 52.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

INOX LEISURE Share Price Performance

Over the last one year, INOX LEISURE share price has moved down from Rs 328.8 to Rs 262.3, registering a loss of Rs 66.6 or around 20.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,403.4 (up 2.8%). Over the last one year it has moved down from 7,621.8 to 6,403.4, a loss of 1,218 points (down 16.0%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of INOX LEISURE?

INOX LEISURE currently trades at Rs 507.9 per share. You can check out the latest share price performance of INOX LEISURE here...

What was the revenue of INOX LEISURE in FY20? How does it compare to earlier years?

The revenues of INOX LEISURE stood at Rs 19,146 m in FY20, which was up 12.2% compared to Rs 17,071 m reported in FY19.

INOX LEISURE's revenue has grown from Rs 11,684 m in FY16 to Rs 19,146 m in FY20.

Over the past 5 years, the revenue of INOX LEISURE has grown at a CAGR of 13.1%.

What was the net profit of INOX LEISURE in FY20? How does it compare to earlier years?

The net profit of INOX LEISURE stood at Rs 150 m in FY20, which was down -88.8% compared to Rs 1,335 m reported in FY19.

This compares to a net profit of Rs 1,147 m in FY18 and a net profit of Rs 305 m in FY17.

Over the past 5 years, INOX LEISURE net profit has grown at a CAGR of -34.4%.

What does the cash flow statement of INOX LEISURE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of INOX LEISURE reveals:

  • Cash flow from operations increased in FY20 and stood at Rs 4,742 m as compared to Rs 2,797 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs -2,130 m as compared to Rs -2,356 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -2,328 m as compared to Rs -456 m in FY19.

Here's the cash flow statement of INOX LEISURE for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations1,6911,0802,1112,7974,742
From Investments-1,568-1,453-1,539-2,356-2,130
From Financial Activity6244-540-456-2,328
Net Cashflow129-12935-16284

What does the Key Ratio analysis of INOX LEISURE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of INOX LEISURE reveals:

  • Operating profit margins witnessed a fall and down at 31.5% in FY20 as against 17.9% in FY19.
  • Net profit margins declined from 7.9% in FY19 to 0.8% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.1 in FY19.

Here's the ratio/financial analysis of INOX LEISURE for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)15.912.014.717.931.5
Net Profit Margin (%)7.02.58.57.90.8
Debt to Equity Ratio (x)0.40.50.40.10.0

Read: Latest Annual Report Analysis of INOX LEISURE

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