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RITES 2020-21 Annual Report Analysis
Wed, 31 Mar

RITES 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.

RITES Income Statement Analysis

  • Operating income during the year fell 24.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 23.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.1% in FY21 as against 26.7% in FY20.
  • Depreciation charges increased by 9.7% and finance costs decreased by 13.2% YoY, respectively.
  • Other income declined by 44.1% YoY.
  • Net profit for the year declined by 29.2% YoY.
  • Net profit margins during the year declined from 25.3% in FY20 to 23.8% in FY21.

RITES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 24,744 18,595 -24.8%
Other income Rs m 2,601 1,455 -44.1%
Total Revenues Rs m 27,345 20,050 -26.7%
Gross profit Rs m 6,608 5,039 -23.7%
Depreciation Rs m 473 519 9.7%
Interest Rs m 69 60 -13.2%
Profit before tax Rs m 8,667 5,915 -31.8%
Tax Rs m 2,411 1,483 -38.5%
Profit after tax Rs m 6,256 4,431 -29.2%
Gross profit margin % 26.7 27.1
Effective tax rate % 27.8 25.1
Net profit margin % 25.3 23.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RITES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 31 billion as compared to Rs 29 billion in FY20, thereby witnessing an increase of 6.4%.
  • Long-term debt down at Rs 246 million as compared to Rs 326 million during FY20, a fall of 24.4%.
  • Current assets fell 4% and stood at Rs 48 billion, while fixed assets rose 12% and stood at Rs 10 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 58 billion as against Rs 59 billion during FY20, thereby witnessing a fall of 2%.

RITES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 26,333 23,920 -9.2
 
Current Liabilities Rs m 29,077 30,950 6.4
Long-term Debt Rs m 326 246 -24.4
Total Liabilities Rs m 59,058 58,063 -1.7
 
Current assets Rs m 50,179 48,111 -4.1
Fixed Assets Rs m 8,879 9,952 12.1
Total Assets Rs m 59,058 58,063 -1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RITES Cash Flow Statement Analysis

  • RITES's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 62.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion, an improvement of 378.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 18 million from the Rs -521 million net cash flows seen during FY20.

RITES 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 3,170 5,157 62.7%
Cash Flow from Investing Activities Rs m 384 1,835 378.1%
Cash Flow from Financing Activities Rs m -4,190 -7,079 -
Net Cash Flow Rs m -521 18 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RITES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an decline from the EPS of Rs 25.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 240.7, stands at 13.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.5 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 99.0 77.4
TTM Earnings per share Rs 25.0 18.4
Diluted earnings per share Rs 26.0 18.4
Price to Cash Flow x 8.8 12.5
TTM P/E ratio x 9.4 13.0
Price / Book Value ratio x 2.5 2.6
Market Cap Rs m 65,250 61,673
Dividends per share (Unadj.) Rs 16.0 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RITES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY21, from 1.7x 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 99.4x during FY21, from 126.2x 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 18.5% during FY21, from 23.8% 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 declined and down at 24.7% during FY21, from 32.8% 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 7.7% during FY21, from 10.7% 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 1.7 1.6
Debtors’ Days Days 12 11
Interest coverage x 126.2 99.4
Debt to equity ratio x 0.0 0.0
Return on assets % 10.7 7.7
Return on equity % 23.8 18.5
Return on capital employed % 32.8 24.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RITES Share Price Performance

Over the last one year, RITES share price has moved down from Rs 246.0 to Rs 240.7, registering a loss of Rs 5.3 or around 2.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Annual Report FAQs

What is the current share price of RITES?

RITES currently trades at Rs 664.3 per share. You can check out the latest share price performance of RITES here...

What was the revenue of RITES in FY21? How does it compare to earlier years?

The revenues of RITES stood at Rs 20,050 m in FY21, which was down -26.7% compared to Rs 27,345 m reported in FY20.

RITES' revenue has grown from Rs 16,946 m in FY17 to Rs 20,050 m in FY21.

Over the past 5 years, the revenue of RITES has grown at a CAGR of 4.3%.

What was the net profit of RITES in FY21? How does it compare to earlier years?

The net profit of RITES stood at Rs 4,431 m in FY21, which was down -29.2% compared to Rs 6,256 m reported in FY20.

This compares to a net profit of Rs 4,816 m in FY19 and a net profit of Rs 3,587 m in FY18.

Over the past 5 years, RITES net profit has grown at a CAGR of 6.2%.

What does the cash flow statement of RITES 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 RITES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 5,157 m as compared to Rs 3,170 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 1,835 m as compared to Rs 384 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -7,079 m as compared to Rs -4,190 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations5,5514,1001,6363,1705,157
From Investments-579-4,5931,3693841,835
From Financial Activity-2,149-2,174-2,788-4,190-7,079
Net Cashflow2,841-2,609236-52118

What does the Key Ratio analysis of RITES 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 RITES reveals:

  • Operating profit margins witnessed a fall and down at 27.1% in FY21 as against 26.7% in FY20.
  • Net profit margins declined from 25.3% in FY20 to 23.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)24.127.828.126.727.1
Net Profit Margin (%)23.524.023.525.323.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of RITES

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