ONMOBILE GLOBAL 2020-21 Annual Report Analysis

Wed, 31 Mar

ONMOBILE GLOBAL 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.

ONMOBILE GLOBAL Income Statement Analysis

• Operating income during the year fell 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY21 as against 8.3% in FY20.
• Depreciation charges decreased by 30.9% and finance costs decreased by 25.1% YoY, respectively.
• Other income declined by 30.4% YoY.
• Net profit for the year grew by 68.8% YoY.
• Net profit margins during the year grew from 4.8% in FY20 to 8.4% in FY21.

ONMOBILE GLOBAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,724	5,513	-3.7%
Other income	Rs m	172	119	-30.4%
Total Revenues	Rs m	5,896	5,632	-4.5%
Gross profit	Rs m	473	697	47.2%
Depreciation	Rs m	185	128	-30.9%
Interest	Rs m	25	19	-25.1%
Profit before tax	Rs m	435	669	54.0%
Tax	Rs m	159	204	28.3%
Profit after tax	Rs m	276	466	68.8%
Gross profit margin	%	8.3	12.6
Effective tax rate	%	36.6	30.5
Net profit margin	%	4.8	8.4

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ONMOBILE GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -9.0%.
• Current assets fell 15% and stood at Rs 5 billion, while fixed assets rose 31% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 1%.

ONMOBILE GLOBAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,746	6,233	8.5
Current Liabilities	Rs m	2,859	2,603	-9.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,439	8,492	0.6
Current assets	Rs m	5,508	4,663	-15.3
Fixed Assets	Rs m	2,932	3,829	30.6
Total Assets	Rs m	8,439	8,492	0.6

ONMOBILE GLOBAL Cash Flow Statement Analysis

• ONMOBILE GLOBAL's cash flow from operating activities (CFO) during FY21 stood at Rs 394 million, an improvement of 129.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -129 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -233 million, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 23 million from the Rs 101 million net cash flows seen during FY20.

ONMOBILE GLOBAL 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	172	394	129.7%
Cash Flow from Investing Activities	Rs m	122	-129	-
Cash Flow from Financing Activities	Rs m	-236	-233	-
Net Cash Flow	Rs m	101	23	-76.9%

Current Valuations for ONMOBILE GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.2, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 13.0 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	54.2	52.8
TTM Earnings per share	Rs	2.6	4.5
Diluted earnings per share	Rs	2.6	4.4
Price to Cash Flow	x	3.2	13.0
TTM P/E ratio	x	5.4	20.0
Price / Book Value ratio	x	0.6	1.2
Market Cap	Rs m	3,300	7,722
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ONMOBILE GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 1.9x 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 36.7x during FY21, from 18.4x 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 improved and stood at 7.5% during FY21, from 4.8% 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 11.0% during FY21, from 8.0% 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 improved and stood at 5.7% during FY21, from 3.6% 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	1.9	1.8
Debtors’ Days	Days	102	100
Interest coverage	x	18.4	36.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	5.7
Return on equity	%	4.8	7.5
Return on capital employed	%	8.0	11.0

To see how ONMOBILE GLOBAL has performed over the last 5 years, please visit here.

ONMOBILE GLOBAL Share Price Performance

Over the last one year, ONMOBILE GLOBAL share price has moved up from Rs 14.2 to Rs 88.2, registering a gain of Rs 74.0 or around 523.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

(To know more, check out historical annual results for ONMOBILE GLOBAL and quarterly results for ONMOBILE GLOBAL)

Read: Latest Annual Report Analysis of ONMOBILE GLOBAL