MINDA INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

MINDA INDUSTRIES 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 INDUSTRIES Income Statement Analysis

• Operating income during the year rose 2.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY21 as against 10.2% in FY20.
• Depreciation charges increased by 10.4% and finance costs decreased by 21.8% YoY, respectively.
• Other income grew by 16.2% YoY.
• Net profit for the year grew by 28.2% YoY.
• Net profit margins during the year grew from 2.8% in FY20 to 3.5% in FY21.

MINDA INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	62,220	63,737	2.4%
Other income	Rs m	405	470	16.2%
Total Revenues	Rs m	62,625	64,208	2.5%
Gross profit	Rs m	6,373	7,267	14.0%
Depreciation	Rs m	3,401	3,753	10.4%
Interest	Rs m	942	737	-21.8%
Profit before tax	Rs m	2,436	3,248	33.3%
Tax	Rs m	686	1,005	46.5%
Profit after tax	Rs m	1,750	2,243	28.2%
Gross profit margin	%	10.2	11.4
Effective tax rate	%	28.2	31.0
Net profit margin	%	2.8	3.5

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MINDA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 25 billion as compared to Rs 23 billion in FY20, thereby witnessing an increase of 9.2%.
• Long-term debt down at Rs 5 billion as compared to Rs 8 billion during FY20, a fall of 30.9%.
• Current assets rose 18% and stood at Rs 24 billion, while fixed assets rose 1% and stood at Rs 36 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 60 billion as against Rs 56 billion during FY20, thereby witnessing a growth of 7%.

MINDA INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,599	22,543	21.2
Current Liabilities	Rs m	23,171	25,302	9.2
Long-term Debt	Rs m	7,803	5,391	-30.9
Total Liabilities	Rs m	55,809	59,774	7.1
Current assets	Rs m	20,459	24,214	18.3
Fixed Assets	Rs m	35,349	35,561	0.6
Total Assets	Rs m	55,809	59,774	7.1

MINDA INDUSTRIES Cash Flow Statement Analysis

• MINDA INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -402 million, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -581 million from the Rs 1 billion net cash flows seen during FY20.

MINDA INDUSTRIES 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	10,486	3,427	-67.3%
Cash Flow from Investing Activities	Rs m	-8,352	-3,610	-
Cash Flow from Financing Activities	Rs m	-959	-402	-
Net Cash Flow	Rs m	1,428	-581	-

Current Valuations for MINDA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 542.3, stands at 70.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.9 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	237.3	234.4
TTM Earnings per share	Rs	6.7	8.2
Diluted earnings per share	Rs	6.1	7.9
Price to Cash Flow	x	13.3	18.9
TTM P/E ratio	x	39.1	70.5
Price / Book Value ratio	x	4.5	5.0
Market Cap	Rs m	83,274	113,387
Dividends per share (Unadj.)	Rs	0.4	0.9

Ratio Analysis for MINDA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.9x 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 improved and stood at 5.4x during FY21, from 3.6x 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 improved and stood at 9.9% during FY21, from 9.4% 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 14.3% during FY21, from 12.8% 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 5.0% during FY21, from 4.8% 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	0.9	1.0
Debtors’ Days	Days	5	7
Interest coverage	x	3.6	5.4
Debt to equity ratio	x	0.4	0.2
Return on assets	%	4.8	5.0
Return on equity	%	9.4	9.9
Return on capital employed	%	12.8	14.3

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

MINDA INDUSTRIES Share Price Performance

Over the last one year, MINDA INDUSTRIES share price has moved up from Rs 239.1 to Rs 542.3, registering a gain of Rs 303.3 or around 126.9%.

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

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

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