INOX LEISURE 2019-20 Annual Report Analysis

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INOX LEISURE 2019-20 Annual Report Analysis
Tue, 1 Dec

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 93.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.5% in FY20 as against 18.2% in FY19.
  • Depreciation charges increased by 176.7% and finance costs increased by 834.7% 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 7.8% 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 3,083 5,968 93.6%
Depreciation Rs m 955 2,642 176.7%
Interest Rs m 237 2,212 834.7%
Profit before tax Rs m 2,041 1,286 -37.0%
Tax Rs m 656 1,136 73.1%
Profit after tax Rs m 1,335 150 -88.8%
Gross profit margin % 18.2 31.5
Effective tax rate % 32.1 88.3
Net profit margin % 7.8 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 227% and stood at Rs 32 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 38 billion as against Rs 15 billion during FY19, thereby witnessing a growth of 158%.

INOX LEISURE Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 9,965 6,545 -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 14,788 38,154 158.0
 
Current assets Rs m 1,513 1,743 15.2
Fixed Assets Rs m 9,861 32,285 227.4
Total Assets Rs m 14,788 38,154 158.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 273.4, stands at -30.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.4 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 164.9 184.9
TTM Earnings per share Rs 13.0 1.5
Diluted earnings per share Rs 13.8 1.6
Price to Cash Flow x 12.2 9.4
TTM P/E ratio x -32.7 -30.8
Price / Book Value ratio x 2.7 5.8
Market Cap Rs m 28,046 26,367
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 9.6x 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 51.9% 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 6.2% during FY20, from 10.6% 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 19 12
Interest coverage x 9.6 1.6
Debt to equity ratio x 0.1 0.0
Return on assets % 10.6 6.2
Return on equity % 13.4 2.3
Return on capital employed % 21.2 51.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 359.6 to Rs 273.4, registering a loss of Rs 86.3 or around 24.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 10,146.8 (up 1.8%). Over the last one year it has moved up from 7,460.8 to 10,146.8, a gain of 2,686 points (up 36.0%).

Overall, the S&P BSE SENSEX is up 9.2% over the year.

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

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Related Views on News

INOX LEISURE Announces Quarterly Results (1QFY21); Net Profit Down 372.8% (Quarterly Result Update)

Aug 20, 2020 | Updated on Aug 20, 2020

For the quarter ended June 2020, INOX LEISURE has posted a net profit of Rs 736 m (down 372.8% YoY). Sales on the other hand came in at Rs 2 m (down 99.9% YoY). Read on for a complete analysis of INOX LEISURE's quarterly results.

INOX LEISURE Announces Quarterly Results (4QFY20); Net Profit Down 270.9% (Quarterly Result Update)

Jun 9, 2020 | Updated on Jun 9, 2020

For the quarter ended March 2020, INOX LEISURE has posted a net profit of Rs 822 m (down 270.9% YoY). Sales on the other hand came in at Rs 4 bn (down 22.4% YoY). Read on for a complete analysis of INOX LEISURE's quarterly results.

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