MAHINDRA CIE AUTO. 2020-21 Annual Report Analysis

Fri, 31 Dec

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

MAHINDRA CIE AUTO. Income Statement Analysis

• Operating income during the year rose 38.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.0% in CY21 as against 8.3% in CY20.
• Depreciation charges increased by 12.0% and finance costs decreased by 2.9% YoY, respectively.
• Other income grew by 1.3% YoY.
• Net profit for the year grew by 267.4% YoY.
• Net profit margins during the year grew from 1.8% in CY20 to 4.7% in CY21.

MAHINDRA CIE AUTO. Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	60,501	83,867	38.6%
Other income	Rs m	549	556	1.3%
Total Revenues	Rs m	61,050	84,423	38.3%
Gross profit	Rs m	5,016	10,045	100.3%
Depreciation	Rs m	3,064	3,431	12.0%
Interest	Rs m	548	532	-2.9%
Profit before tax	Rs m	1,953	6,638	239.9%
Tax	Rs m	887	2,721	206.8%
Profit after tax	Rs m	1,066	3,917	267.4%
Gross profit margin	%	8.3	12.0
Effective tax rate	%	45.4	41.0
Net profit margin	%	1.8	4.7

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

MAHINDRA CIE AUTO. Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 31 billion as compared to Rs 27 billion in CY20, thereby witnessing an increase of 14.3%.
• Long-term debt down at Rs 7 billion as compared to Rs 9 billion during CY20, a fall of 30.4%.
• Current assets rose 16% and stood at Rs 29 billion, while fixed assets rose 1% and stood at Rs 69 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 98 billion as against Rs 94 billion during CY20, thereby witnessing a growth of 5%.

MAHINDRA CIE AUTO. Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	49,042	51,935	5.9
Current Liabilities	Rs m	27,436	31,352	14.3
Long-term Debt	Rs m	9,372	6,522	-30.4
Total Liabilities	Rs m	93,635	98,206	4.9
Current assets	Rs m	24,775	28,795	16.2
Fixed Assets	Rs m	68,860	69,411	0.8
Total Assets	Rs m	93,635	98,206	4.9

MAHINDRA CIE AUTO. Cash Flow Statement Analysis

• MAHINDRA CIE AUTO.'s cash flow from operating activities (CFO) during CY21 stood at Rs 11 billion, an improvement of 94.9% on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -8 billion, an improvement of 75.9% on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs -740 million from the Rs 796 million net cash flows seen during CY20.

MAHINDRA CIE AUTO. Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	5,393	10,512	94.9%
Cash Flow from Investing Activities	Rs m	-4,294	-7,551	-
Cash Flow from Financing Activities	Rs m	-380	-3,627	-
Net Cash Flow	Rs m	796	-740	-

Current Valuations for MAHINDRA CIE AUTO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.9, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	159.6	221.2
TTM Earnings per share	Rs	2.8	10.3
Diluted earnings per share	Rs	2.8	10.3
Price to Cash Flow	x	12.1	11.9
TTM P/E ratio	x	22.7	12.9
Price / Book Value ratio	x	0.9	1.7
Market Cap	Rs m	45,131	87,178
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for MAHINDRA CIE AUTO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during CY21, from 0.9x during CY20. 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 13.5x during CY21, from 4.6x during CY20. 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 7.5% during CY21, from 2.2% during CY21. 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 12.3% during CY21, from 4.3% during CY20. 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 4.5% during CY21, from 1.7% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	0.9	0.9
Debtors’ Days	Days	43	29
Interest coverage	x	4.6	13.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	1.7	4.5
Return on equity	%	2.2	7.5
Return on capital employed	%	4.3	12.3

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

MAHINDRA CIE AUTO. Share Price Performance

Over the last one year, MAHINDRA CIE AUTO. share price has moved down from Rs 189.6 to Rs 184.9, registering a loss of Rs 4.7 or around 2.5%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for MAHINDRA CIE AUTO. and quarterly results for MAHINDRA CIE AUTO.)

Read: Latest Annual Report Analysis of CIE AUTOMOTIVE INDIA