MAHINDRA LOGISTICS 2020-21 Annual Report Analysis

Wed, 31 Mar

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

MAHINDRA LOGISTICS Income Statement Analysis

• Operating income during the year fell 6.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.0% in FY21 as against 4.6% in FY20.
• Depreciation charges increased by 22.1% and finance costs increased by 14.0% YoY, respectively.
• Other income grew by 25.0% YoY.
• Net profit for the year declined by 47.4% YoY.
• Net profit margins during the year declined from 1.6% in FY20 to 0.9% in FY21.

MAHINDRA LOGISTICS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,711	32,637	-6.0%
Other income	Rs m	140	175	25.0%
Total Revenues	Rs m	34,851	32,812	-5.9%
Gross profit	Rs m	1,583	1,315	-16.9%
Depreciation	Rs m	734	897	22.1%
Interest	Rs m	176	201	14.0%
Profit before tax	Rs m	812	392	-51.7%
Tax	Rs m	257	100	-61.1%
Profit after tax	Rs m	555	292	-47.4%
Gross profit margin	%	4.6	4.0
Effective tax rate	%	31.7	25.6
Net profit margin	%	1.6	0.9

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MAHINDRA LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 24.2%.
• Long-term debt down at Rs 9 million as compared to Rs 23 million during FY20, a fall of 61.0%.
• Current assets rose 22% and stood at Rs 12 billion, while fixed assets rose 8% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 18%.

MAHINDRA LOGISTICS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,447	5,680	4.3
Current Liabilities	Rs m	7,341	9,115	24.2
Long-term Debt	Rs m	23	9	-61.0
Total Liabilities	Rs m	14,019	16,566	18.2
Current assets	Rs m	9,846	12,043	22.3
Fixed Assets	Rs m	4,173	4,523	8.4
Total Assets	Rs m	14,019	16,566	18.2

MAHINDRA LOGISTICS Cash Flow Statement Analysis

• MAHINDRA LOGISTICS 's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 244.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -875 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 982 million from the Rs 446 million net cash flows seen during FY20.

MAHINDRA LOGISTICS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	854	2,937	244.0%
Cash Flow from Investing Activities	Rs m	355	-1,080	-
Cash Flow from Financing Activities	Rs m	-763	-875	-
Net Cash Flow	Rs m	446	982	120.4%

Current Valuations for MAHINDRA LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an decline from the EPS of Rs 7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 579.6, stands at 142.9 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 24.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	485.2	455.4
TTM Earnings per share	Rs	7.8	4.1
Diluted earnings per share	Rs	7.7	4.1
Price to Cash Flow	x	12.6	24.9
TTM P/E ratio	x	29.3	142.9
Price / Book Value ratio	x	5.1	5.2
Market Cap	Rs m	27,678	29,616
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for MAHINDRA LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY21, from 1.3x during FY20. 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 3.0x during FY21, from 5.6x during FY20. 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 5.1% during FY21, from 10.2% during FY21. 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 10.4% during FY21, from 18.1% during FY20. 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 3.0% during FY21, from 5.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	6	5
Interest coverage	x	5.6	3.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.2	3.0
Return on equity	%	10.2	5.1
Return on capital employed	%	18.1	10.4

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

MAHINDRA LOGISTICS Share Price Performance

Over the last one year, MAHINDRA LOGISTICS share price has moved up from Rs 225.8 to Rs 579.6, registering a gain of Rs 353.8 or around 156.7%.

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

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

Read: Latest Annual Report Analysis of MAHINDRA LOGISTICS