CYIENT 2019-20 Annual Report Analysis

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CYIENT 2019-20 Annual Report Analysis
Fri, 1 Jan

CYIENT 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.

CYIENT Income Statement Analysis

  • Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY20 as against 13.7% in FY19.
  • Depreciation charges increased by 68.6% and finance costs increased by 49.1% YoY, respectively.
  • Other income grew by 18.1% YoY.
  • Net profit for the year declined by 28.5% YoY.
  • Net profit margins during the year declined from 10.0% in FY19 to 7.4% in FY20.

CYIENT Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 46,175 44,274 -4.1%
Other income Rs m 1,340 1,583 18.1%
Total Revenues Rs m 47,515 45,857 -3.5%
Gross profit Rs m 6,328 5,489 -13.3%
Depreciation Rs m 1,114 1,878 68.6%
Interest Rs m 326 486 49.1%
Profit before tax Rs m 6,228 4,708 -24.4%
Tax Rs m 1,427 1,270 -11.0%
Profit after tax Rs m 4,771 3,412 -28.5%
Gross profit margin % 13.7 12.4
Effective tax rate % 22.9 27.0
Net profit margin % 10.0 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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CYIENT Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 11 billion as compared to Rs 10 billion in FY19, thereby witnessing an increase of 12.5%.
  • Long-term debt down at Rs 859 million as compared to Rs 1 billion during FY19, a fall of 23.0%.
  • Current assets fell 5% and stood at Rs 25 billion, while fixed assets rose 34% and stood at Rs 15 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 42 billion as against Rs 39 billion during FY19, thereby witnessing a growth of 7%.

CYIENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 25,641 25,609 -0.1
 
Current Liabilities Rs m 9,895 11,135 12.5
Long-term Debt Rs m 1,116 859 -23.0
Total Liabilities Rs m 38,892 41,797 7.5
 
Current assets Rs m 25,853 24,650 -4.7
Fixed Assets Rs m 10,820 14,509 34.1
Total Assets Rs m 38,892 41,797 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CYIENT Cash Flow Statement Analysis

  • CYIENT's cash flow from operating activities (CFO) during FY20 stood at Rs 6 billion, an improvement of 57.4% 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 -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -101 million from the Rs -521 million net cash flows seen during FY19.

CYIENT 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 3,701 5,824 57.4%
Cash Flow from Investing Activities Rs m -2,197 -1,570 -
Cash Flow from Financing Activities Rs m -2,321 -4,463 -
Net Cash Flow Rs m -521 -101 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CYIENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.0, an decline from the EPS of Rs 43.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 511.7, stands at 17.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.8 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 418.0 402.6
TTM Earnings per share Rs 43.2 31.0
Diluted earnings per share Rs 42.5 30.4
Price to Cash Flow x 9.6 10.8
TTM P/E ratio x 17.1 17.3
Price / Book Value ratio x 3.1 1.9
Market Cap Rs m 56,522 57,489
Dividends per share (Unadj.) Rs 15.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CYIENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY20, from 2.6x 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 10.7x during FY20, from 20.1x 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 13.3% during FY20, from 18.6% 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 declined and down at 19.5% during FY20, from 24.4% 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 9.3% during FY20, from 13.1% 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 2.6 2.2
Debtors’ Days Days 64 60
Interest coverage x 20.1 10.7
Debt to equity ratio x 0.0 0.0
Return on assets % 13.1 9.3
Return on equity % 18.6 13.3
Return on capital employed % 24.4 19.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

CYIENT Share Price Performance

Over the last one year, CYIENT share price has moved up from Rs 433.1 to Rs 511.7, registering a gain of Rs 78.6 or around 18.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 24,460.7 (up 0.9%). Over the last one year it has moved up from 15,569.6 to 24,460.7, a gain of 8,891 points (up 57.1%).

Overall, the S&P BSE SENSEX is up 15.3% over the year.

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

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Related Views on News

CYIENT Announces Quarterly Results (2QFY21); Net Profit Down 13.9% (Quarterly Result Update)

Oct 19, 2020 | Updated on Oct 19, 2020

For the quarter ended September 2020, CYIENT has posted a net profit of Rs 839 m (down 13.9% YoY). Sales on the other hand came in at Rs 10 bn (down 13.4% YoY). Read on for a complete analysis of CYIENT's quarterly results.

CYIENT Announces Quarterly Results (4QFY20); Net Profit Down 73.4% (Quarterly Result Update)

May 14, 2020 | Updated on May 14, 2020

For the quarter ended March 2020, CYIENT has posted a net profit of Rs 467 m (down 73.4% YoY). Sales on the other hand came in at Rs 11 bn (down 7.7% YoY). Read on for a complete analysis of CYIENT's quarterly results.

CYIENT 2018-19 Annual Report Analysis (Annual Result Update)

May 21, 2019 | Updated on May 21, 2019

Here's an analysis of the annual report of CYIENT for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of CYIENT. Also includes updates on the valuation of CYIENT.

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