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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 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)

Annual Report FAQs

What is the current share price of CYIENT?

CYIENT currently trades at Rs 847.9 per share. You can check out the latest share price performance of CYIENT here...

What was the revenue of CYIENT in FY22? How does it compare to earlier years?

The revenues of CYIENT stood at Rs 46,465 m in FY22, which was up 8.1% compared to Rs 42,989 m reported in FY21.

CYIENT's revenue has grown from Rs 40,622 m in FY18 to Rs 46,465 m in FY22.

Over the past 5 years, the revenue of CYIENT has grown at a CAGR of 3.4%.

What was the net profit of CYIENT in FY22? How does it compare to earlier years?

The net profit of CYIENT stood at Rs 5,223 m in FY22, which was up 43.6% compared to Rs 3,638 m reported in FY21.

This compares to a net profit of Rs 3,438 m in FY20 and a net profit of Rs 4,766 m in FY19.

Over the past 5 years, CYIENT net profit has grown at a CAGR of 5.7%.

What does the cash flow statement of CYIENT 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 CYIENT reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 6,345 m as compared to Rs 8,558 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -3,823 m as compared to Rs -1,007 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -5,445 m as compared to Rs -2,526 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations2,9633,7015,8248,5586,345
From Investments-869-2,197-1,570-1,007-3,823
From Financial Activity-1,359-2,321-4,463-2,526-5,445
Net Cashflow1,033-521-1014,994-2,871

What does the Key Ratio analysis of CYIENT 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 CYIENT reveals:

  • Operating profit margins witnessed a fall and down at 18.0% in FY22 as against 13.3% in FY21.
  • Net profit margins grew from 8.8% in FY21 to 11.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)13.613.212.413.318.0
Net Profit Margin (%)10.710.37.88.811.5
Debt to Equity Ratio (x)0.00.00.00.00.0

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