MINDTECK INDIA 2021-22 Annual Report Analysis

Tue, 4 Oct

MINDTECK INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MINDTECK INDIA Income Statement Analysis

• Operating income during the year rose 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 92.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY22 as against 6.8% in FY21.
• Depreciation charges decreased by 21.4% and finance costs decreased by 44.2% YoY, respectively.
• Other income grew by 39.8% YoY.
• Net profit for the year grew by 206.7% YoY.
• Net profit margins during the year grew from 3.8% in FY21 to 11.1% in FY22.

MINDTECK INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,867	2,988	4.2%
Other income	Rs m	46	64	39.8%
Total Revenues	Rs m	2,913	3,052	4.8%
Gross profit	Rs m	196	376	92.0%
Depreciation	Rs m	64	50	-21.4%
Interest	Rs m	17	9	-44.2%
Profit before tax	Rs m	161	381	136.1%
Tax	Rs m	53	48	-9.5%
Profit after tax	Rs m	109	333	206.7%
Gross profit margin	%	6.8	12.6
Effective tax rate	%	32.7	12.5
Net profit margin	%	3.8	11.1

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MINDTECK INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 457 million as compared to Rs 586 million in FY21, thereby witnessing an decrease of -22.1%.
• Current assets rose 3% and stood at Rs 2 billion, while fixed assets rose 38% and stood at Rs 656 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 11%.

MINDTECK INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,381	1,740	26.0
Current Liabilities	Rs m	586	457	-22.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,023	2,252	11.3
Current assets	Rs m	1,547	1,595	3.1
Fixed Assets	Rs m	476	656	38.0
Total Assets	Rs m	2,023	2,252	11.3

MINDTECK INDIA Cash Flow Statement Analysis

• MINDTECK INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 217 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -200 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -34 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 million from the Rs 215 million net cash flows seen during FY21.

MINDTECK INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	337	217	-35.8%
Cash Flow from Investing Activities	Rs m	-253	-200	-
Cash Flow from Financing Activities	Rs m	131	-34	-
Net Cash Flow	Rs m	215	-3	-

Current Valuations for MINDTECK INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an improvement from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 133.9, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	113.7	118.1
TTM Earnings per share	Rs	4.3	13.2
Diluted earnings per share	Rs	4.2	13.0
Price to Cash Flow	x	6.2	11.1
TTM P/E ratio	x	9.8	20.2
Price / Book Value ratio	x	0.7	2.4
Market Cap	Rs m	940	4,254
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for MINDTECK INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY22, from 2.6x during FY21. 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 42.4x during FY22, from 10.8x during FY21. 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 19.1% during FY22, from 7.9% during FY22. 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 22.4% during FY22, from 12.9% during FY21. 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 15.2% during FY22, from 6.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.6	3.5
Debtors’ Days	Days	872	887
Interest coverage	x	10.8	42.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	15.2
Return on equity	%	7.9	19.1
Return on capital employed	%	12.9	22.4

To see how MINDTECK INDIA has performed over the last 5 years, please visit here.

MINDTECK INDIA Share Price Performance

Over the last one year, MINDTECK INDIA share price has moved up from Rs 94.4 to Rs 133.9, registering a gain of Rs 39.5 or around 41.8%.

Overall, the S&P BSE SENSEX is down 2.0% over the year.

(To know more, check out historical annual results for MINDTECK INDIA and quarterly results for MINDTECK INDIA)