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MINDA CORPORATION 2020-21 Annual Report Analysis
Wed, 31 Mar

MINDA CORPORATION 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.

MINDA CORPORATION Income Statement Analysis

  • Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 319.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY21 as against 3.7% in FY20.
  • Depreciation charges increased by 8.1% and finance costs decreased by 6.1% YoY, respectively.
  • Other income declined by 22.1% YoY.
  • Net profit for the year declined by 123.0% YoY.
  • Net profit margins during the year grew from 9.6% in FY20 to 2.1% in FY21.

MINDA CORPORATION Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 22,226 23,679 6.5%
Other income Rs m 426 332 -22.1%
Total Revenues Rs m 22,652 24,011 6.0%
Gross profit Rs m -816 1,793 -319.7%
Depreciation Rs m 866 936 8.1%
Interest Rs m 413 388 -6.1%
Profit before tax Rs m -1,669 801 -148.0%
Tax Rs m 454 312 -31.3%
Profit after tax Rs m -2,123 489 -123.0%
Gross profit margin % -3.7 7.6
Effective tax rate % -27.2 39.0
Net profit margin % -9.6 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

MINDA CORPORATION Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 10 billion as compared to Rs 12 billion in FY20, thereby witnessing an decrease of -11.9%.
  • Long-term debt down at Rs 933 million as compared to Rs 1 billion during FY20, a fall of 18.9%.
  • Current assets fell 3% and stood at Rs 15 billion, while fixed assets rose 5% and stood at Rs 8 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 23 billion as against Rs 23 billion during FY20, thereby witnessing a growth of 0%.

MINDA CORPORATION Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,734 11,441 17.5
 
Current Liabilities Rs m 11,675 10,287 -11.9
Long-term Debt Rs m 1,150 933 -18.9
Total Liabilities Rs m 23,268 23,281 0.1
 
Current assets Rs m 15,257 14,862 -2.6
Fixed Assets Rs m 8,011 8,419 5.1
Total Assets Rs m 23,268 23,281 0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MINDA CORPORATION Cash Flow Statement Analysis

  • MINDA CORPORATION's cash flow from operating activities (CFO) during FY21 stood at Rs 855 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 27.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 652 million, an improvement of 126% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -416 million from the Rs 644 million net cash flows seen during FY20.

MINDA CORPORATION 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 4,504 855 -81.0%
Cash Flow from Investing Activities Rs m -1,371 -1,742 -
Cash Flow from Financing Activities Rs m -2,490 652 -
Net Cash Flow Rs m 644 -416 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MINDA CORPORATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an improvement from the EPS of Rs -9.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 100.7, stands at 50.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.7 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 97.8 99.0
TTM Earnings per share Rs -9.3 2.0
Diluted earnings per share Rs -8.9 2.0
Price to Cash Flow x -10.9 13.7
TTM P/E ratio x -6.5 50.2
Price / Book Value ratio x 2.3 1.7
Market Cap Rs m 22,455 19,497
Dividends per share (Unadj.) Rs 0.4 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MINDA CORPORATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x 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 improved and stood at 3.1x during FY21, from -3.0x 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 improved and stood at 4.3% during FY21, from -21.8% 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 improved and stood at 9.6% during FY21, from -11.5% 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 improved and stood at 3.8% during FY21, from -7.3% 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 1.4
Debtors’ Days Days 64 68
Interest coverage x -3.0 3.1
Debt to equity ratio x 0.1 0.1
Return on assets % -7.3 3.8
Return on equity % -21.8 4.3
Return on capital employed % -11.5 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MINDA CORPORATION has performed over the last 5 years, please visit here.

MINDA CORPORATION Share Price Performance

Over the last one year, MINDA CORPORATION share price has moved up from Rs 57.6 to Rs 100.7, registering a gain of Rs 43.2 or around 75.0%.

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

(To know more, check out historical annual results for MINDA CORPORATION and quarterly results for MINDA CORPORATION)

Annual Report FAQs

What is the current share price of MINDA CORPORATION?

MINDA CORPORATION currently trades at Rs 418.2 per share. You can check out the latest share price performance of MINDA CORPORATION here...

What was the revenue of MINDA CORPORATION in FY21? How does it compare to earlier years?

The revenues of MINDA CORPORATION stood at Rs 24,011 m in FY21, which was up 6.0% compared to Rs 22,652 m reported in FY20.

MINDA CORPORATION's revenue has grown from Rs 19,497 m in FY17 to Rs 24,011 m in FY21.

Over the past 5 years, the revenue of MINDA CORPORATION has grown at a CAGR of 5.3%.

What was the net profit of MINDA CORPORATION in FY21? How does it compare to earlier years?

The net profit of MINDA CORPORATION stood at Rs 489 m in FY21, which was down -123.0% compared to Rs -2,123 m reported in FY20.

This compares to a net profit of Rs 1,412 m in FY19 and a net profit of Rs 1,286 m in FY18.

Over the past 5 years, MINDA CORPORATION net profit has grown at a CAGR of -19.4%.

What does the cash flow statement of MINDA CORPORATION 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 MINDA CORPORATION reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 855 m as compared to Rs 4,504 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -1,742 m as compared to Rs -1,371 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 652 m as compared to Rs -2,490 m in FY20.

Here's the cash flow statement of MINDA CORPORATION for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations4846992,0944,504855
From Investments-1,699-2,002-4,019-1,371-1,742
From Financial Activity6741,2212,033-2,490652
Net Cashflow-426-83110644-416

What does the Key Ratio analysis of MINDA CORPORATION 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 MINDA CORPORATION reveals:

  • Operating profit margins witnessed a fall and down at 7.6% in FY21 as against 3.7% in FY20.
  • Net profit margins grew from 9.6% in FY20 to 2.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of MINDA CORPORATION for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)10.110.810.1-3.77.6
Net Profit Margin (%)6.15.04.6-9.62.1
Debt to Equity Ratio (x)0.30.40.10.10.1

Read: Latest Annual Report Analysis of MINDA CORPORATION

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