CYIENT 2021-22 Annual Report Analysis

Fri, 20 May

CYIENT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CYIENT Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY22 as against 13.3% in FY21.
• Depreciation charges decreased by 1.2% and finance costs decreased by 9.2% YoY, respectively.
• Other income declined by 32.7% YoY.
• Net profit for the year grew by 43.6% YoY.
• Net profit margins during the year grew from 8.8% in FY21 to 11.5% in FY22.

CYIENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	41,324	45,344	9.7%
Other income	Rs m	1,665	1,121	-32.7%
Total Revenues	Rs m	42,989	46,465	8.1%
Gross profit	Rs m	5,484	8,178	49.1%
Depreciation	Rs m	1,945	1,922	-1.2%
Interest	Rs m	433	393	-9.2%
Profit before tax	Rs m	4,771	6,984	46.4%
Tax	Rs m	1,133	1,761	55.4%
Profit after tax	Rs m	3,638	5,223	43.6%
Gross profit margin	%	13.3	18.0
Effective tax rate	%	23.7	25.2
Net profit margin	%	8.8	11.5

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CYIENT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 18 billion as compared to Rs 15 billion in FY21, thereby witnessing an increase of 17.5%.
• Long-term debt down at Rs 448 million as compared to Rs 882 million during FY21, a fall of 49.2%.
• Current assets rose 5% and stood at Rs 34 billion, while fixed assets rose 12% and stood at Rs 23 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 58 billion as against Rs 53 billion during FY21, thereby witnessing a growth of 8%.

CYIENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	29,408	30,934	5.2
Current Liabilities	Rs m	14,938	17,559	17.5
Long-term Debt	Rs m	882	448	-49.2
Total Liabilities	Rs m	53,459	57,594	7.7
Current assets	Rs m	32,776	34,333	4.8
Fixed Assets	Rs m	20,683	23,261	12.5
Total Assets	Rs m	53,459	57,594	7.7

CYIENT Cash Flow Statement Analysis

• CYIENT's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 279.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 billion from the Rs 5 billion net cash flows seen during FY21.

CYIENT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	8,558	6,345	-25.9%
Cash Flow from Investing Activities	Rs m	-1,007	-3,823	-
Cash Flow from Financing Activities	Rs m	-2,526	-5,445	-
Net Cash Flow	Rs m	4,994	-2,871	-

Current Valuations for CYIENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.3, an improvement from the EPS of Rs 33.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 787.0, stands at 16.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	375.6	411.0
TTM Earnings per share	Rs	33.1	47.3
Diluted earnings per share	Rs	33.0	47.3
Price to Cash Flow	x	12.8	15.0
TTM P/E ratio	x	19.7	16.6
Price / Book Value ratio	x	1.7	3.5
Market Cap	Rs m	49,079	107,209
Dividends per share (Unadj.)	Rs	17.0	24.0

Ratio Analysis for CYIENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.2x during FY21. 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 improved and stood at 18.8x during FY22, from 12.0x during FY21. 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 improved and stood at 16.9% during FY22, from 12.4% during FY22. 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 23.5% during FY22, from 17.2% during FY21. 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 improved and stood at 9.8% during FY22, from 7.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.2	2.0
Debtors’ Days	Days	71	59
Interest coverage	x	12.0	18.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	9.8
Return on equity	%	12.4	16.9
Return on capital employed	%	17.2	23.5

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 down from Rs 828.7 to Rs 787.0, registering a loss of Rs 41.7 or around 5.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,325.7 (up 1.6%). Over the last one year it has moved up from 26,505.1 to 29,325.7, a gain of 2,821 points (up 10.6%).

Overall, the S&P BSE SENSEX is up 8.3% over the year.

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

Read: Latest Annual Report Analysis of CYIENT