MAN INFRACONST. 2020-21 Annual Report Analysis

Wed, 31 Mar

MAN INFRACONST. 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.

MAN INFRACONST. Income Statement Analysis

• Operating income during the year rose 60.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4212.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY21 as against 0.9% in FY20.
• Depreciation charges increased by 29.5% and finance costs increased by 2.0% YoY, respectively.
• Other income declined by 8.7% YoY.
• Net profit for the year declined by 285.4% YoY.
• Net profit margins during the year grew from 6.5% in FY20 to 7.5% in FY21.

MAN INFRACONST. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,670	4,272	60.0%
Other income	Rs m	272	249	-8.7%
Total Revenues	Rs m	2,942	4,520	53.6%
Gross profit	Rs m	-23	966	-4,212.5%
Depreciation	Rs m	71	92	29.5%
Interest	Rs m	573	584	2.0%
Profit before tax	Rs m	-395	539	-236.5%
Tax	Rs m	-222	218	-198.2%
Profit after tax	Rs m	-173	321	-285.4%
Gross profit margin	%	-0.9	22.6
Effective tax rate	%	56.1	40.4
Net profit margin	%	-6.5	7.5

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MAN INFRACONST. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 81.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 11.4%.
• Current assets rose 29% and stood at Rs 11 billion, while fixed assets fell 25% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 13%.

MAN INFRACONST. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,698	6,748	0.8
Current Liabilities	Rs m	2,395	4,334	81.0
Long-term Debt	Rs m	3,651	3,235	-11.4
Total Liabilities	Rs m	12,486	14,051	12.5
Current assets	Rs m	8,637	11,176	29.4
Fixed Assets	Rs m	3,849	2,875	-25.3
Total Assets	Rs m	12,486	14,051	12.5

MAN INFRACONST. Cash Flow Statement Analysis

• MAN INFRACONST.'s cash flow from operating activities (CFO) during FY21 stood at Rs 783 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -842 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 200 million, an improvement of 115% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 141 million from the Rs 339 million net cash flows seen during FY20.

MAN INFRACONST. 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	881	783	-11.1%
Cash Flow from Investing Activities	Rs m	841	-842	-
Cash Flow from Financing Activities	Rs m	-1,371	200	-
Net Cash Flow	Rs m	339	141	-58.4%

Current Valuations for MAN INFRACONST.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.7, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 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	10.8	17.3
TTM Earnings per share	Rs	-0.7	1.3
Diluted earnings per share	Rs	-0.5	0.9
Price to Cash Flow	x	-60.7	18.7
TTM P/E ratio	x	-35.9	48.2
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	6,918	7,728
Dividends per share (Unadj.)	Rs	0.6	0.9

Ratio Analysis for MAN INFRACONST.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY21, from 3.6x 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 1.9x during FY21, from 0.3x 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 4.8% during FY21, from -2.6% 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 improved and stood at 11.2% during FY21, from 1.7% 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 6.4% during FY21, from 3.2% 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	3.6	2.6
Debtors’ Days	Days	1,119	893
Interest coverage	x	0.3	1.9
Debt to equity ratio	x	0.5	0.5
Return on assets	%	3.2	6.4
Return on equity	%	-2.6	4.8
Return on capital employed	%	1.7	11.2

To see how MAN INFRACONST. has performed over the last 5 years, please visit here.

MAN INFRACONST. Share Price Performance

Over the last one year, MAN INFRACONST. share price has moved up from Rs 16.8 to Rs 41.7, registering a gain of Rs 25.0 or around 149.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

(To know more, check out historical annual results for MAN INFRACONST. and quarterly results for MAN INFRACONST.)

Read: Latest Annual Report Analysis of MAN INFRACONST.