ACCELYA SOLUTIONS 2020-21 Annual Report Analysis

Wed, 30 Jun

ACCELYA SOLUTIONS has announced its results for the year ended June 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ACCELYA SOLUTIONS Income Statement Analysis

• Operating income during the year fell 29.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.4% in FY as against 37.2% in FY.
• Depreciation charges increased by 4.7% and finance costs decreased by 19.7% YoY, respectively.
• Other income grew by 116.3% YoY.
• Net profit for the year declined by 51.4% YoY.
• Net profit margins during the year declined from 21.1% in FY to 14.5% in FY.

ACCELYA SOLUTIONS Income Statement 2020-21

No. of Mths Year Ending		12 Jun-20*	12 Jun-21*	% Change
Net Sales	Rs m	4,120	2,904	-29.5%
Other income	Rs m	50	109	116.3%
Total Revenues	Rs m	4,171	3,012	-27.8%
Gross profit	Rs m	1,533	853	-44.3%
Depreciation	Rs m	324	340	4.7%
Interest	Rs m	55	45	-19.7%
Profit before tax	Rs m	1,203	578	-52.0%
Tax	Rs m	335	156	-53.5%
Profit after tax	Rs m	868	422	-51.4%
Gross profit margin	%	37.2	29.4
Effective tax rate	%	27.9	27.0
Net profit margin	%	21.1	14.5

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ACCELYA SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY down at Rs 2 billion as compared to Rs 2 billion in FY, thereby witnessing an decrease of -7.1%.
• Current assets fell 6% and stood at Rs 3 billion, while fixed assets fell 28% and stood at Rs 2 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 4 billion as against Rs 5 billion during FY, thereby witnessing a fall of 15%.

ACCELYA SOLUTIONS Balance Sheet as on June 2021

No. of Mths Year Ending		12 Jun-20*	12 Jun-21*	% Change
Networth	Rs m	2,448	2,386	-2.5
Current Liabilities	Rs m	1,888	1,755	-7.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,239	4,470	-14.7
Current assets	Rs m	3,140	2,956	-5.8
Fixed Assets	Rs m	2,099	1,514	-27.9
Total Assets	Rs m	5,239	4,470	-14.7

ACCELYA SOLUTIONS Cash Flow Statement Analysis

• ACCELYA SOLUTIONS's cash flow from operating activities (CFO) during FY stood at Rs 867 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -105 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -663 million on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 92 million from the Rs 173 million net cash flows seen during FY.

ACCELYA SOLUTIONS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-20	Jun-21
Cash Flow from Operating Activities	Rs m	1,309	867	-33.8%
Cash Flow from Investing Activities	Rs m	-613	-105	-
Cash Flow from Financing Activities	Rs m	-530	-663	-
Net Cash Flow	Rs m	173	92	-46.8%

Current Valuations for ACCELYA SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an decline from the EPS of Rs 58.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,164.9, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 20.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-20*	12 Jun-21*
Sales per share (Unadj.)	Rs	276.0	194.5
TTM Earnings per share	Rs	58.1	28.3
Diluted earnings per share	Rs	58.2	28.3
Price to Cash Flow	x	11.5	20.2
TTM P/E ratio	x	15.8	41.2
Price / Book Value ratio	x	5.9	6.4
Market Cap	Rs m	14,526	15,380
Dividends per share (Unadj.)	Rs	10.0	52.0

Ratio Analysis for ACCELYA SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY, from 1.7x during FY. 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 14.0x during FY, from 22.7x during FY. 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 17.7% during FY, from 35.5% during FY. 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 26.1% during FY, from 51.4% during FY. 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 10.4% during FY, from 17.6% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-20*	12 Jun-21*
Current ratio	x	1.7	1.7
Debtors’ Days	Days	738	804
Interest coverage	x	22.7	14.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.6	10.4
Return on equity	%	35.5	17.7
Return on capital employed	%	51.4	26.1

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

ACCELYA SOLUTIONS Share Price Performance

Over the last one year, ACCELYA SOLUTIONS share price has moved up from Rs 848.7 to Rs 853.3, registering a gain of Rs 4.6 or around 0.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

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

Read: Latest Annual Report Analysis of ACCELYA SOLUTIONS