TCI EXPRESS 2020-21 Annual Report Analysis

Wed, 31 Mar

TCI EXPRESS 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.

TCI EXPRESS Income Statement Analysis

• Operating income during the year fell 18.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.9% in FY21 as against 11.8% in FY20.
• Depreciation charges increased by 15.1% and finance costs decreased by 13.3% YoY, respectively.
• Other income grew by 75.1% YoY.
• Net profit for the year grew by 12.9% YoY.
• Net profit margins during the year grew from 8.6% in FY20 to 11.9% in FY21.

TCI EXPRESS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,320	8,440	-18.2%
Other income	Rs m	44	77	75.1%
Total Revenues	Rs m	10,363	8,516	-17.8%
Gross profit	Rs m	1,213	1,343	10.7%
Depreciation	Rs m	78	90	15.1%
Interest	Rs m	9	8	-13.3%
Profit before tax	Rs m	1,170	1,322	13.0%
Tax	Rs m	279	316	13.3%
Profit after tax	Rs m	891	1,006	12.9%
Gross profit margin	%	11.8	15.9
Effective tax rate	%	23.9	23.9
Net profit margin	%	8.6	11.9

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TCI EXPRESS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 881 million in FY20, thereby witnessing an increase of 17.2%.
• Long-term debt down at Rs 10 million as compared to Rs 19 million during FY20, a fall of 47.1%.
• Current assets rose 23% and stood at Rs 3 billion, while fixed assets rose 29% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 26%.

TCI EXPRESS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,347	4,320	29.1
Current Liabilities	Rs m	881	1,033	17.2
Long-term Debt	Rs m	19	10	-47.1
Total Liabilities	Rs m	4,315	5,437	26.0
Current assets	Rs m	2,221	2,729	22.8
Fixed Assets	Rs m	2,094	2,708	29.3
Total Assets	Rs m	4,315	5,437	26.0

TCI EXPRESS Cash Flow Statement Analysis

• TCI EXPRESS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 45.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -960 million, an improvement of 61.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -82 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 146 million from the Rs -45 million net cash flows seen during FY20.

TCI EXPRESS 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	816	1,189	45.6%
Cash Flow from Investing Activities	Rs m	-595	-960	-
Cash Flow from Financing Activities	Rs m	-266	-82	-
Net Cash Flow	Rs m	-45	146	-

Current Valuations for TCI EXPRESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.2, an improvement from the EPS of Rs 23.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 948.6, stands at 36.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 26.6 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	269.0	219.6
TTM Earnings per share	Rs	23.2	26.2
Diluted earnings per share	Rs	23.1	26.1
Price to Cash Flow	x	21.8	26.6
TTM P/E ratio	x	23.7	36.3
Price / Book Value ratio	x	8.3	6.8
Market Cap	Rs m	27,644	29,200
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for TCI EXPRESS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.5x 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 170.5x during FY21, from 131.0x 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 23.3% during FY21, from 26.6% 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 30.7% during FY21, from 35.0% 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 declined and down at 18.6% during FY21, from 20.9% 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	2.5	2.6
Debtors’ Days	Days	6	7
Interest coverage	x	131.0	170.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.9	18.6
Return on equity	%	26.6	23.3
Return on capital employed	%	35.0	30.7

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

TCI EXPRESS Share Price Performance

Over the last one year, TCI EXPRESS share price has moved up from Rs 548.3 to Rs 948.6, registering a gain of Rs 400.3 or around 73.0%.

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

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

Read: Latest Annual Report Analysis of TCI EXPRESS