INDIAMART INTERMESH 2020-21 Annual Report Analysis

Wed, 31 Mar

INDIAMART INTERMESH 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.

INDIAMART INTERMESH Income Statement Analysis

• Operating income during the year rose 4.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 94.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 49.0% in FY21 as against 26.4% in FY20.
• Depreciation charges decreased by 24.0% and finance costs increased by 103.0% YoY, respectively.
• Other income grew by 26.2% YoY.
• Net profit for the year grew by 89.5% YoY.
• Net profit margins during the year grew from 23.3% in FY20 to 42.2% in FY21.

INDIAMART INTERMESH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,389	6,696	4.8%
Other income	Rs m	686	866	26.2%
Total Revenues	Rs m	7,074	7,561	6.9%
Gross profit	Rs m	1,689	3,282	94.3%
Depreciation	Rs m	211	161	-24.0%
Interest	Rs m	33	67	103.0%
Profit before tax	Rs m	2,131	3,920	84.0%
Tax	Rs m	640	1,096	71.1%
Profit after tax	Rs m	1,490	2,824	89.5%
Gross profit margin	%	26.4	49.0
Effective tax rate	%	30.1	28.0
Net profit margin	%	23.3	42.2

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INDIAMART INTERMESH Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 10.4%.
• Current assets rose 159% and stood at Rs 24 billion, while fixed assets rose 7% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 134%.

INDIAMART INTERMESH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,634	16,011	507.8
Current Liabilities	Rs m	4,904	5,413	10.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,984	25,750	134.4
Current assets	Rs m	9,200	23,847	159.2
Fixed Assets	Rs m	1,784	1,903	6.7
Total Assets	Rs m	10,984	25,750	134.4

INDIAMART INTERMESH Cash Flow Statement Analysis

• INDIAMART INTERMESH's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 23.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -13 billion, an improvement of 475.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 10 billion, an improvement of 2,124% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 232 million from the Rs -233 million net cash flows seen during FY20.

INDIAMART INTERMESH 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	2,606	3,225	23.7%
Cash Flow from Investing Activities	Rs m	-2,326	-13,376	-
Cash Flow from Financing Activities	Rs m	-513	10,383	-
Net Cash Flow	Rs m	-233	232	-

Current Valuations for INDIAMART INTERMESH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 93.2, an improvement from the EPS of Rs 51.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,732.6, stands at 83.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 35.0 times.
• The company's price to cash flow (P/CF) ratio stood at 60.3 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	221.2	220.8
TTM Earnings per share	Rs	51.6	93.2
Diluted earnings per share	Rs	48.7	92.3
Price to Cash Flow	x	34.8	60.3
TTM P/E ratio	x	39.8	83.8
Price / Book Value ratio	x	20.9	11.2
Market Cap	Rs m	55,069	179,957
Dividends per share (Unadj.)	Rs	10.0	15.0

Ratio Analysis for INDIAMART INTERMESH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY21, from 1.9x 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 59.8x during FY21, from 65.9x 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 17.6% during FY21, from 56.6% 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 24.9% during FY21, from 82.1% 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 11.2% during FY21, from 13.9% 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	1.9	4.4
Debtors’ Days	Days	1	1
Interest coverage	x	65.9	59.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.9	11.2
Return on equity	%	56.6	17.6
Return on capital employed	%	82.1	24.9

To see how INDIAMART INTERMESH has performed over the last 5 years, please visit here.

INDIAMART INTERMESH Share Price Performance

Over the last one year, INDIAMART INTERMESH share price has moved up from Rs 1,935.9 to Rs 7,732.6, registering a gain of Rs 5,796.7 or around 299.4%.

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

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

Read: Latest Annual Report Analysis of INDIAMART INTERMESH