PTC INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

PTC INDIA 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.

PTC INDIA Income Statement Analysis

• Operating income during the year rose 1.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY21 as against 10.1% in FY20.
• Depreciation charges decreased by 0.5% and finance costs decreased by 19.9% YoY, respectively.
• Other income grew by 23.7% YoY.
• Net profit for the year grew by 12.7% YoY.
• Net profit margins during the year grew from 2.2% in FY20 to 2.5% in FY21.

PTC INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	181,008	183,455	1.4%
Other income	Rs m	228	282	23.7%
Total Revenues	Rs m	181,236	183,737	1.4%
Gross profit	Rs m	18,258	16,786	-8.1%
Depreciation	Rs m	1,005	1,000	-0.5%
Interest	Rs m	11,587	9,281	-19.9%
Profit before tax	Rs m	5,893	6,786	15.2%
Tax	Rs m	1,832	2,209	20.6%
Profit after tax	Rs m	4,061	4,577	12.7%
Gross profit margin	%	10.1	9.1
Effective tax rate	%	31.1	32.6
Net profit margin	%	2.2	2.5

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PTC INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 78 billion as compared to Rs 76 billion in FY20, thereby witnessing an increase of 2.2%.
• Long-term debt down at Rs 77 billion as compared to Rs 85 billion during FY20, a fall of 9.2%.
• Current assets rose 21% and stood at Rs 106 billion, while fixed assets fell 18% and stood at Rs 101 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 206 billion as against Rs 210 billion during FY20, thereby witnessing a fall of 2%.

PTC INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	41,873	44,200	5.6
Current Liabilities	Rs m	75,920	77,626	2.2
Long-term Debt	Rs m	84,847	77,043	-9.2
Total Liabilities	Rs m	210,123	206,151	-1.9
Current assets	Rs m	87,546	105,627	20.7
Fixed Assets	Rs m	122,575	100,522	-18.0
Total Assets	Rs m	210,123	206,151	-1.9

PTC INDIA Cash Flow Statement Analysis

• PTC INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 22.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -11 billion, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 5 billion from the Rs 3 billion net cash flows seen during FY20.

PTC INDIA 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	32,935	21,081	-36.0%
Cash Flow from Investing Activities	Rs m	-4,139	-5,049	-
Cash Flow from Financing Activities	Rs m	-25,705	-10,852	-
Net Cash Flow	Rs m	3,092	5,181	67.6%

Current Valuations for PTC INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.5, an improvement from the EPS of Rs 13.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.1, stands at 5.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 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	611.5	619.8
TTM Earnings per share	Rs	13.7	15.5
Diluted earnings per share	Rs	13.7	15.5
Price to Cash Flow	x	2.3	3.2
TTM P/E ratio	x	2.8	5.0
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	16,414	17,716
Dividends per share (Unadj.)	Rs	5.5	7.5

Ratio Analysis for PTC INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.2x 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 1.7x during FY21, from 1.5x 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 10.4% during FY21, from 9.7% 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 13.3% during FY21, from 13.8% 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 declined and down at 6.7% 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	1.2	1.4
Debtors’ Days	Days	14	12
Interest coverage	x	1.5	1.7
Debt to equity ratio	x	2.0	1.7
Return on assets	%	7.4	6.7
Return on equity	%	9.7	10.4
Return on capital employed	%	13.8	13.3

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

PTC INDIA Share Price Performance

Over the last one year, PTC INDIA share price has moved up from Rs 38.6 to Rs 78.1, registering a gain of Rs 39.5 or around 102.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

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

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

Read: Latest Annual Report Analysis of PTC INDIA