MIRZA INTERNATIONAL 2020-21 Annual Report Analysis

Wed, 31 Mar

MIRZA INTERNATIONAL 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.

MIRZA INTERNATIONAL Income Statement Analysis

• Operating income during the year fell 16.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 31.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY21 as against 13.6% in FY20.
• Depreciation charges increased by 4.9% and finance costs decreased by 10.0% YoY, respectively.
• Other income declined by 28.1% YoY.
• Net profit for the year declined by 82.4% YoY.
• Net profit margins during the year declined from 3.8% in FY20 to 0.8% in FY21.

MIRZA INTERNATIONAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	12,612	10,489	-16.8%
Other income	Rs m	17	12	-28.1%
Total Revenues	Rs m	12,629	10,501	-16.8%
Gross profit	Rs m	1,718	1,183	-31.1%
Depreciation	Rs m	634	665	4.9%
Interest	Rs m	456	410	-10.0%
Profit before tax	Rs m	644	119	-81.5%
Tax	Rs m	167	36	-78.8%
Profit after tax	Rs m	477	84	-82.4%
Gross profit margin	%	13.6	11.3
Effective tax rate	%	26.0	29.8
Net profit margin	%	3.8	0.8

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MIRZA INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 4 billion in FY20, thereby witnessing an decrease of -27.6%.
• Long-term debt down at Rs 44 million as compared to Rs 180 million during FY20, a fall of 75.6%.
• Current assets fell 11% and stood at Rs 6 billion, while fixed assets fell 3% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 13 billion during FY20, thereby witnessing a fall of 7%.

MIRZA INTERNATIONAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,279	6,382	1.6
Current Liabilities	Rs m	4,226	3,061	-27.6
Long-term Debt	Rs m	180	44	-75.6
Total Liabilities	Rs m	12,602	11,704	-7.1
Current assets	Rs m	6,485	5,797	-10.6
Fixed Assets	Rs m	6,118	5,907	-3.4
Total Assets	Rs m	12,602	11,704	-7.1

MIRZA INTERNATIONAL Cash Flow Statement Analysis

• MIRZA INTERNATIONAL's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 4.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -407 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -35 million from the Rs 83 million net cash flows seen during FY20.

MIRZA INTERNATIONAL 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	2,279	2,378	4.4%
Cash Flow from Investing Activities	Rs m	-628	-407	-
Cash Flow from Financing Activities	Rs m	-1,568	-2,007	-
Net Cash Flow	Rs m	83	-35	-

Current Valuations for MIRZA INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.6, stands at 67.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	104.8	87.2
TTM Earnings per share	Rs	4.0	0.7
Diluted earnings per share	Rs	4.0	0.7
Price to Cash Flow	x	4.0	8.1
TTM P/E ratio	x	9.2	67.8
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	5,964	6,075
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MIRZA INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x 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 deteriorated and stood at 1.3x during FY21, from 2.4x 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 declined and down at 1.3% during FY21, from 7.6% 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 declined and down at 8.2% during FY21, from 17.0% 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 declined and down at 4.2% during FY21, from 7.4% 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	1.5	1.9
Debtors’ Days	Days	407	277
Interest coverage	x	2.4	1.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	4.2
Return on equity	%	7.6	1.3
Return on capital employed	%	17.0	8.2

To see how MIRZA INTERNATIONAL has performed over the last 5 years, please visit here.

MIRZA INTERNATIONAL Share Price Performance

Over the last one year, MIRZA INTERNATIONAL share price has moved up from Rs 36.7 to Rs 45.6, registering a gain of Rs 9.0 or around 24.4%.

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

(To know more, check out historical annual results for MIRZA INTERNATIONAL and quarterly results for MIRZA INTERNATIONAL)

Read: Latest Annual Report Analysis of MIRZA INTERNATIONAL