PERSISTENT SYSTEMS 2020-21 Annual Report Analysis

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PERSISTENT SYSTEMS 2020-21 Annual Report Analysis
Tue, 19 Oct

PERSISTENT SYSTEMS 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.

PERSISTENT SYSTEMS Income Statement Analysis

  • Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 36.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.0% in FY21 as against 13.8% in FY20.
  • Depreciation charges increased by 5.8% and finance costs decreased by 8.5% YoY, respectively.
  • Other income declined by 8.7% YoY.
  • Net profit for the year grew by 32.4% YoY.
  • Net profit margins during the year grew from 9.2% in FY20 to 10.5% in FY21.

PERSISTENT SYSTEMS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 35,658 41,879 17.4%
Other income Rs m 1,324 1,209 -8.7%
Total Revenues Rs m 36,982 43,088 16.5%
Gross profit Rs m 4,923 6,699 36.1%
Depreciation Rs m 1,660 1,756 5.8%
Interest Rs m 63 58 -8.5%
Profit before tax Rs m 4,523 6,094 34.7%
Tax Rs m 1,121 1,588 41.7%
Profit after tax Rs m 3,403 4,507 32.4%
Gross profit margin % 13.8 16.0
Effective tax rate % 24.8 26.1
Net profit margin % 9.2 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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PERSISTENT SYSTEMS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 18.8%.
  • Long-term debt down at Rs 44 million as compared to Rs 46 million during FY20, a fall of 4.2%.
  • Current assets rose 34% and stood at Rs 27 billion, while fixed assets fell 12% and stood at Rs 9 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 30 billion during FY20, thereby witnessing a growth of 19%.

PERSISTENT SYSTEMS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 23,567 27,486 16.6
 
Current Liabilities Rs m 6,482 7,697 18.8
Long-term Debt Rs m 46 44 -4.2
Total Liabilities Rs m 29,962 35,618 18.9
 
Current assets Rs m 19,856 26,703 34.5
Fixed Assets Rs m 10,106 8,915 -11.8
Total Assets Rs m 29,962 35,618 18.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PERSISTENT SYSTEMS Cash Flow Statement Analysis

  • PERSISTENT SYSTEMS's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 109.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 3,549.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 56% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 519 million from the Rs 161 million net cash flows seen during FY20.

PERSISTENT SYSTEMS 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 3,516 7,359 109.3%
Cash Flow from Investing Activities Rs m -148 -5,417 -
Cash Flow from Financing Activities Rs m -3,291 -1,443 -
Net Cash Flow Rs m 161 519 223.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PERSISTENT SYSTEMS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.0, an improvement from the EPS of Rs 44.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 4,272.7, stands at 63.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 52.1 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 466.5 547.9
TTM Earnings per share Rs 44.5 59.0
Diluted earnings per share Rs 44.5 59.0
Price to Cash Flow x 64.5 52.1
TTM P/E ratio x 63.8 63.8
Price / Book Value ratio x 1.9 3.4
Market Cap Rs m 326,559 326,537
Dividends per share (Unadj.) Rs 12.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PERSISTENT SYSTEMS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.5x during FY21, from 3.1x 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 106.2x during FY21, from 72.4x 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 16.4% during FY21, from 14.4% 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 22.3% during FY21, from 19.4% 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 12.8% during FY21, from 11.6% 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 3.1 3.5
Debtors’ Days Days 61 50
Interest coverage x 72.4 106.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.6 12.8
Return on equity % 14.4 16.4
Return on capital employed % 19.4 22.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PERSISTENT SYSTEMS has performed over the last 5 years, please visit here.

PERSISTENT SYSTEMS Share Price Performance

Over the last one year, PERSISTENT SYSTEMS share price has moved up from Rs 1,257.3 to Rs 4,272.7, registering a gain of Rs 3,015.4 or around 239.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,414.3 (up 1.9%). Over the last one year it has moved up from 21,748.5 to 36,414.3, a gain of 14,666 points (up 67.4%).

Overall, the S&P BSE SENSEX is up 51.9% over the year.

(To know more, check out historical annual results for PERSISTENT SYSTEMS and quarterly results for PERSISTENT SYSTEMS)

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PERSISTENT SYSTEMS Announces Quarterly Results (1QFY22); Net Profit Up 68.0% (Quarterly Result Update)

Jul 26, 2021 | Updated on Jul 26, 2021

For the quarter ended June 2021, PERSISTENT SYSTEMS has posted a net profit of Rs 2 bn (up 68.0% YoY). Sales on the other hand came in at Rs 12 bn (up 24.1% YoY). Read on for a complete analysis of PERSISTENT SYSTEMS's quarterly results.

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