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QUESS CORP 2021-22 Annual Report Analysis
Tue, 20 Sep

QUESS CORP 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.

QUESS CORP Income Statement Analysis

  • Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.6% in FY22 as against 4.6% in FY21.
  • Depreciation charges decreased by 7.2% and finance costs decreased by 28.3% YoY, respectively.
  • Other income declined by 56.1% YoY.
  • Net profit for the year grew by 196.8% YoY.
  • Net profit margins during the year grew from 0.8% in FY21 to 1.8% in FY22.

QUESS CORP Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 108,369 136,918 26.3%
Other income Rs m 451 198 -56.1%
Total Revenues Rs m 108,820 137,116 26.0%
Gross profit Rs m 4,935 6,332 28.3%
Depreciation Rs m 2,285 2,120 -7.2%
Interest Rs m 1,140 817 -28.3%
Profit before tax Rs m 1,961 3,592 83.2%
Tax Rs m 1,110 1,066 -3.9%
Profit after tax Rs m 851 2,527 196.8%
Gross profit margin % 4.6 4.6
Effective tax rate % 56.6 29.7
Net profit margin % 0.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

QUESS CORP Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 23 billion as compared to Rs 17 billion in FY21, thereby witnessing an increase of 40.4%.
  • Long-term debt down at Rs 237 million as compared to Rs 543 million during FY21, a fall of 56.4%.
  • Current assets rose 21% and stood at Rs 31 billion, while fixed assets rose 6% and stood at Rs 25 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 56 billion as against Rs 49 billion during FY21, thereby witnessing a growth of 14%.

QUESS CORP Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 23,178 23,984 3.5
 
Current Liabilities Rs m 16,520 23,191 40.4
Long-term Debt Rs m 543 237 -56.4
Total Liabilities Rs m 49,102 55,771 13.6
 
Current assets Rs m 25,893 31,202 20.5
Fixed Assets Rs m 23,209 24,570 5.9
Total Assets Rs m 49,102 55,771 13.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



QUESS CORP Cash Flow Statement Analysis

  • QUESS CORP's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 77.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 47% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -753 million from the Rs -2 billion net cash flows seen during FY21.

QUESS CORP 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 7,154 5,539 -22.6%
Cash Flow from Investing Activities Rs m -1,063 -1,884 -
Cash Flow from Financing Activities Rs m -8,336 -4,413 -
Net Cash Flow Rs m -2,234 -753 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for QUESS CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an improvement from the EPS of Rs 5.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 650.9, stands at 35.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.2 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 733.8 925.2
TTM Earnings per share Rs 5.8 17.1
Diluted earnings per share Rs 5.7 17.1
Price to Cash Flow x 33.0 24.2
TTM P/E ratio x 121.6 35.0
Price / Book Value ratio x 3.1 4.7
Market Cap Rs m 71,801 112,295
Dividends per share (Unadj.) Rs 7.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for QUESS CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.6x 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 5.4x during FY22, from 2.7x 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 10.5% during FY22, from 3.7% 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 18.2% during FY22, from 13.1% 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 6.0% during FY22, from 4.1% 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 1.6 1.3
Debtors’ Days Days 30 34
Interest coverage x 2.7 5.4
Debt to equity ratio x 0.0 0.0
Return on assets % 4.1 6.0
Return on equity % 3.7 10.5
Return on capital employed % 13.1 18.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how QUESS CORP has performed over the last 5 years, please visit here.

QUESS CORP Share Price Performance

Over the last one year, QUESS CORP share price has moved down from Rs 934.4 to Rs 650.9, registering a loss of Rs 283.5 or around 30.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 27,794.8 (up 1.4%). Over the last one year it has moved down from 34,710.1 to 27,794.8, a loss of 6,915 points (down 19.9%).

Overall, the S&P BSE SENSEX is up 1.5% over the year.

(To know more, check out historical annual results for QUESS CORP and quarterly results for QUESS CORP)

Annual Report FAQs

What is the current share price of QUESS CORP?

QUESS CORP currently trades at Rs 521.4 per share. You can check out the latest share price performance of QUESS CORP here...

What was the revenue of QUESS CORP in FY22? How does it compare to earlier years?

The revenues of QUESS CORP stood at Rs 137,116 m in FY22, which was up 26.0% compared to Rs 108,820 m reported in FY21.

QUESS CORP's revenue has grown from Rs 62,242 m in FY18 to Rs 137,116 m in FY22.

Over the past 5 years, the revenue of QUESS CORP has grown at a CAGR of 21.8%.

What was the net profit of QUESS CORP in FY22? How does it compare to earlier years?

The net profit of QUESS CORP stood at Rs 2,527 m in FY22, which was up 196.8% compared to Rs 851 m reported in FY21.

This compares to a net loss of Rs -4,180 m in FY20 and a net profit of Rs 2,654 m in FY19.

Over the past 5 years, QUESS CORP net profit has grown at a CAGR of -4.9%.

What does the cash flow statement of QUESS CORP reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of QUESS CORP reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 5,539 m as compared to Rs 7,154 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -1,884 m as compared to Rs -1,063 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -4,413 m as compared to Rs -8,336 m in FY21.

Here's the cash flow statement of QUESS CORP for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations1,0872,0163,6117,1545,539
From Investments-7,9681,802-1,736-1,063-1,884
From Financial Activity9,475-4,453135-8,336-4,413
Net Cashflow2,626-6132,044-2,234-753

What does the Key Ratio analysis of QUESS CORP reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of QUESS CORP reveals:

  • Operating profit margins witnessed a fall and down at 4.6% in FY22 as against 4.6% in FY21.
  • Net profit margins grew from 0.8% in FY21 to 1.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of QUESS CORP for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)5.85.50.04.64.6
Net Profit Margin (%)5.03.1-3.80.81.8
Debt to Equity Ratio (x)0.10.10.10.00.0

Read: Latest Annual Report Analysis of QUESS CORP

 

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