INOX LEISURE 2020-21 Annual Report Analysis

Wed, 31 Mar

INOX LEISURE 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.

INOX LEISURE Income Statement Analysis

• Operating income during the year fell 94.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 129.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 166.5% in FY21 as against 31.5% in FY20.
• Depreciation charges increased by 7.2% and finance costs increased by 13.5% YoY, respectively.
• Other income grew by 1439.3% YoY.
• Net profit for the year declined by 2350.1% YoY.
• Net profit margins during the year declined from 0.8% in FY20 to 318.7% in FY21.

INOX LEISURE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,974	1,059	-94.4%
Other income	Rs m	172	2,643	1,439.3%
Total Revenues	Rs m	19,146	3,702	-80.7%
Gross profit	Rs m	5,968	-1,763	-129.5%
Depreciation	Rs m	2,642	2,832	7.2%
Interest	Rs m	2,212	2,511	13.5%
Profit before tax	Rs m	1,286	-4,464	-447.1%
Tax	Rs m	1,136	-1,087	-195.7%
Profit after tax	Rs m	150	-3,377	-2,350.1%
Gross profit margin	%	31.5	-166.5
Effective tax rate	%	88.3	24.4
Net profit margin	%	0.8	-318.7

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INOX LEISURE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -25.6%.
• Long-term debt stood at Rs 470 million as compared to Rs 200 million during FY20, a growth of 135.1%.
• Current assets fell 19% and stood at Rs 1 billion, while fixed assets fell 3% and stood at Rs 34 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 36 billion during FY20, thereby witnessing a fall of 4%.

INOX LEISURE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,531	6,322	-3.2
Current Liabilities	Rs m	4,895	3,640	-25.6
Long-term Debt	Rs m	200	470	135.1
Total Liabilities	Rs m	36,381	35,002	-3.8
Current assets	Rs m	1,743	1,420	-18.5
Fixed Assets	Rs m	34,639	33,582	-3.0
Total Assets	Rs m	36,381	35,002	-3.8

INOX LEISURE Cash Flow Statement Analysis

• INOX LEISURE's cash flow from operating activities (CFO) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 194% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -325 million from the Rs 284 million net cash flows seen during FY20.

INOX LEISURE 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	4,742	-1,308	-
Cash Flow from Investing Activities	Rs m	-2,130	-1,216	-
Cash Flow from Financing Activities	Rs m	-2,328	2,199	-
Net Cash Flow	Rs m	284	-325	-

Current Valuations for INOX LEISURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -30.0, an decline from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 284.6, stands at -10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 30.2 times.
• The company's price to cash flow (P/CF) ratio stood at -53.4 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	184.8	9.4
TTM Earnings per share	Rs	1.5	-30.0
Diluted earnings per share	Rs	1.2	-27.6
Price to Cash Flow	x	11.5	-53.4
TTM P/E ratio	x	213.9	-10.3
Price / Book Value ratio	x	5.8	4.6
Market Cap	Rs m	38,082	29,063
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for INOX LEISURE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY21, from 0.4x 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 -0.8x during FY21, from 1.6x 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 -53.4% during FY21, from 2.3% 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 -28.7% during FY21, from 52.0% 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 -2.5% during FY21, from 6.5% 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	0.4	0.4
Debtors’ Days	Days	121	148
Interest coverage	x	1.6	-0.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	6.5	-2.5
Return on equity	%	2.3	-53.4
Return on capital employed	%	52.0	-28.7

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 up from Rs 262.3 to Rs 284.6, registering a gain of Rs 22.4 or around 8.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

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

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

Read: Latest Annual Report Analysis of INOX LEISURE