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L&T TECHONOLOGY 2021-22 Annual Report Analysis
Sat, 25 Jun

L&T TECHONOLOGY 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.

L&T TECHONOLOGY Income Statement Analysis

  • Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY22 as against 17.8% in FY21.
  • Depreciation charges decreased by 1.8% and finance costs decreased by 4.0% YoY, respectively.
  • Other income declined by 4.5% YoY.
  • Net profit for the year grew by 44.1% YoY.
  • Net profit margins during the year grew from 12.2% in FY21 to 14.6% in FY22.

L&T TECHONOLOGY Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 54,497 65,697 20.6%
Other income Rs m 1,916 1,829 -4.5%
Total Revenues Rs m 56,413 67,526 19.7%
Gross profit Rs m 9,695 13,844 42.8%
Depreciation Rs m 2,183 2,144 -1.8%
Interest Rs m 455 437 -4.0%
Profit before tax Rs m 8,973 13,092 45.9%
Tax Rs m 2,308 3,486 51.0%
Profit after tax Rs m 6,665 9,606 44.1%
Gross profit margin % 17.8 21.1
Effective tax rate % 25.7 26.6
Net profit margin % 12.2 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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L&T TECHONOLOGY Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 25.6%.
  • Current assets rose 23% and stood at Rs 43 billion, while fixed assets rose 12% and stood at Rs 18 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 61 billion as against Rs 51 billion during FY21, thereby witnessing a growth of 20%.

L&T TECHONOLOGY Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 34,434 41,438 20.3
 
Current Liabilities Rs m 10,982 13,789 25.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 50,662 60,772 20.0
 
Current assets Rs m 35,026 43,251 23.5
Fixed Assets Rs m 15,636 17,521 12.1
Total Assets Rs m 50,662 60,772 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



L&T TECHONOLOGY Cash Flow Statement Analysis

  • L&T TECHONOLOGY's cash flow from operating activities (CFO) during FY22 stood at Rs 10 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion 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 597 million from the Rs -356 million net cash flows seen during FY21.

L&T TECHONOLOGY 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 13,325 10,062 -24.5%
Cash Flow from Investing Activities Rs m -10,054 -4,483 -
Cash Flow from Financing Activities Rs m -3,627 -4,982 -
Net Cash Flow Rs m -356 597 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for L&T TECHONOLOGY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 91.4, an improvement from the EPS of Rs 63.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,051.4, stands at 33.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 4.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.7 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 521.5 625.4
TTM Earnings per share Rs 63.8 91.4
Diluted earnings per share Rs 63.1 91.0
Price to Cash Flow x 31.7 37.7
TTM P/E ratio x 42.0 33.5
Price / Book Value ratio x 6.0 10.7
Market Cap Rs m 205,094 443,004
Dividends per share (Unadj.) Rs 22.0 35.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for L&T TECHONOLOGY

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY22, from 3.2x 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 31.0x during FY22, from 20.7x 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 23.2% during FY22, from 19.4% 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 32.6% during FY22, from 27.4% 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 16.5% during FY22, from 14.1% 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 3.2 3.1
Debtors’ Days Days 83 94
Interest coverage x 20.7 31.0
Debt to equity ratio x 0.0 0.0
Return on assets % 14.1 16.5
Return on equity % 19.4 23.2
Return on capital employed % 27.4 32.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how L&T TECHONOLOGY has performed over the last 5 years, please visit here.

L&T TECHONOLOGY Share Price Performance

Over the last one year, L&T TECHONOLOGY share price has moved up from Rs 2,926.2 to Rs 3,051.4, registering a gain of Rs 125.3 or around 4.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,147.6 (down 0.6%). Over the last one year it has moved down from 30,055.6 to 28,147.6, a loss of 1,908 points (down 6.3%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for L&T TECHONOLOGY and quarterly results for L&T TECHONOLOGY)

Annual Report FAQs

What is the current share price of L&T TECHONOLOGY?

L&T TECHONOLOGY currently trades at Rs 0.0 per share. You can check out the latest share price performance of L&T TECHONOLOGY here...

What was the revenue of L&T TECHONOLOGY in FY22? How does it compare to earlier years?

The revenues of L&T TECHONOLOGY stood at Rs 67,526 m in FY22, which was up 19.7% compared to Rs 56,413 m reported in FY21.

L&T TECHONOLOGY's revenue has grown from Rs 39,532 m in FY18 to Rs 67,526 m in FY22.

Over the past 5 years, the revenue of L&T TECHONOLOGY has grown at a CAGR of 14.3%.

What was the net profit of L&T TECHONOLOGY in FY22? How does it compare to earlier years?

The net profit of L&T TECHONOLOGY stood at Rs 9,606 m in FY22, which was up 44.1% compared to Rs 6,665 m reported in FY21.

This compares to a net profit of Rs 8,224 m in FY20 and a net profit of Rs 7,684 m in FY19.

Over the past 5 years, L&T TECHONOLOGY net profit has grown at a CAGR of 17.3%.

What does the cash flow statement of L&T TECHONOLOGY 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 L&T TECHONOLOGY reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 10,062 m as compared to Rs 13,325 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -4,483 m as compared to Rs -10,054 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -4,982 m as compared to Rs -3,627 m in FY21.

Here's the cash flow statement of L&T TECHONOLOGY for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations4,0928,0626,38113,32510,062
From Investments-1,960-5,093-2,222-10,054-4,483
From Financial Activity-1,323-2,454-4,060-3,627-4,982
Net Cashflow80951599-356597

What does the Key Ratio analysis of L&T TECHONOLOGY 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 L&T TECHONOLOGY reveals:

  • Operating profit margins witnessed a fall and down at 21.1% in FY22 as against 17.8% in FY21.
  • Net profit margins grew from 12.2% in FY21 to 14.6% 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 L&T TECHONOLOGY for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)15.018.019.717.821.1
Net Profit Margin (%)13.515.114.612.214.6
Debt to Equity Ratio (x)0.00.00.00.00.0

 

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