TANLA PLATFORMS 2020-21 Annual Report Analysis

Wed, 31 Mar

TANLA PLATFORMS 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.

TANLA PLATFORMS Income Statement Analysis

• Operating income during the year rose 20.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 216.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.6% in FY21 as against 7.1% in FY20.
• Depreciation charges decreased by 89.5% and finance costs decreased by 69.7% YoY, respectively.
• Other income grew by 77.4% YoY.
• Net profit for the year declined by 270.0% YoY.
• Net profit margins during the year grew from 10.8% in FY20 to 15.2% in FY21.

TANLA PLATFORMS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,428	23,415	20.5%
Other income	Rs m	124	219	77.4%
Total Revenues	Rs m	19,552	23,634	20.9%
Gross profit	Rs m	1,374	4,347	216.4%
Depreciation	Rs m	3,778	396	-89.5%
Interest	Rs m	75	23	-69.7%
Profit before tax	Rs m	-2,356	4,148	-276.1%
Tax	Rs m	-261	586	-324.8%
Profit after tax	Rs m	-2,095	3,561	-270.0%
Gross profit margin	%	7.1	18.6
Effective tax rate	%	11.1	14.1
Net profit margin	%	-10.8	15.2

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TANLA PLATFORMS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 49.9%.
• Current assets rose 63% and stood at Rs 13 billion, while fixed assets fell 15% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 39%.

TANLA PLATFORMS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,910	8,911	29.0
Current Liabilities	Rs m	4,719	7,074	49.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,322	15,698	38.6
Current assets	Rs m	7,774	12,698	63.3
Fixed Assets	Rs m	3,548	3,000	-15.4
Total Assets	Rs m	11,322	15,698	38.6

TANLA PLATFORMS Cash Flow Statement Analysis

• TANLA PLATFORMS's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 134.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -98 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 456 million net cash flows seen during FY20.

TANLA PLATFORMS 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	2,392	5,610	134.6%
Cash Flow from Investing Activities	Rs m	-1,263	-98	-
Cash Flow from Financing Activities	Rs m	-673	-1,677	-
Net Cash Flow	Rs m	456	3,836	742.1%

Current Valuations for TANLA PLATFORMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.2, an improvement from the EPS of Rs -14.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 816.6, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 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	133.1	172.1
TTM Earnings per share	Rs	-14.4	26.2
Diluted earnings per share	Rs	-15.4	26.2
Price to Cash Flow	x	3.9	18.5
TTM P/E ratio	x	-3.1	31.1
Price / Book Value ratio	x	1.3	8.2
Market Cap	Rs m	9,145	73,334
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for TANLA PLATFORMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.6x 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 183.6x during FY21, from -30.5x 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 40.0% during FY21, from -30.3% 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 46.8% during FY21, from -33.0% 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 22.8% during FY21, from -17.8% 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	1.6	1.8
Debtors’ Days	Days	612	582
Interest coverage	x	-30.5	183.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-17.8	22.8
Return on equity	%	-30.3	40.0
Return on capital employed	%	-33.0	46.8

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

TANLA PLATFORMS Share Price Performance

Over the last one year, TANLA PLATFORMS share price has moved up from Rs 48.5 to Rs 816.6, registering a gain of Rs 768.1 or around 1583.7%.

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 TANLA PLATFORMS and quarterly results for TANLA PLATFORMS)

Read: Latest Annual Report Analysis of TANLA PLATFORMS