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TCNS CLOTHING CO. 2020-21 Annual Report Analysis
Wed, 31 Mar

TCNS CLOTHING CO. 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.

TCNS CLOTHING CO. Income Statement Analysis

  • Operating income during the year fell 44.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 98.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.4% in FY21 as against 16.2% in FY20.
  • Depreciation charges decreased by 10.9% and finance costs decreased by 4.5% YoY, respectively.
  • Other income grew by 131.7% YoY.
  • Net profit for the year declined by 181.2% YoY.
  • Net profit margins during the year declined from 6.0% in FY20 to 8.9% in FY21.

TCNS CLOTHING CO. Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 11,487 6,355 -44.7%
Other income Rs m 211 490 131.7%
Total Revenues Rs m 11,698 6,845 -41.5%
Gross profit Rs m 1,863 24 -98.7%
Depreciation Rs m 1,032 919 -10.9%
Interest Rs m 382 365 -4.5%
Profit before tax Rs m 661 -769 -216.5%
Tax Rs m -33 -206 513.8%
Profit after tax Rs m 694 -564 -181.2%
Gross profit margin % 16.2 0.4
Effective tax rate % -5.1 26.7
Net profit margin % 6.0 -8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TCNS CLOTHING CO. Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -28.1%.
  • Current assets fell 12% and stood at Rs 7 billion, while fixed assets fell 8% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 13 billion during FY20, thereby witnessing a fall of 11%.

TCNS CLOTHING CO. Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,042 5,510 -8.8
 
Current Liabilities Rs m 2,963 2,130 -28.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,988 11,585 -10.8
 
Current assets Rs m 7,899 6,917 -12.4
Fixed Assets Rs m 5,089 4,668 -8.3
Total Assets Rs m 12,988 11,585 -10.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TCNS CLOTHING CO. Cash Flow Statement Analysis

  • TCNS CLOTHING CO.'s cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -556 million, an improvement of 2,099.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -961 million, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -383 million from the Rs 314 million net cash flows seen during FY20.

TCNS CLOTHING CO. 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 1,310 1,133 -13.5%
Cash Flow from Investing Activities Rs m -25 -556 -
Cash Flow from Financing Activities Rs m -971 -961 -
Net Cash Flow Rs m 314 -383 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TCNS CLOTHING CO.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.2, an decline from the EPS of Rs 11.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 507.7, stands at -55.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 4.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 75.0 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 186.9 103.3
TTM Earnings per share Rs 11.3 -9.2
Diluted earnings per share Rs 11.3 -9.2
Price to Cash Flow x 12.1 75.0
TTM P/E ratio x 30.2 -55.5
Price / Book Value ratio x 5.9 4.8
Market Cap Rs m 35,791 26,658
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TCNS CLOTHING CO.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.2x during FY21, from 2.7x 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 -1.1x during FY21, from 2.7x 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 -10.2% during FY21, from 11.5% 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 -7.3% during FY21, from 17.3% 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 -1.7% during FY21, from 8.3% 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 2.7 3.2
Debtors’ Days Days 56 95
Interest coverage x 2.7 -1.1
Debt to equity ratio x 0.0 0.0
Return on assets % 8.3 -1.7
Return on equity % 11.5 -10.2
Return on capital employed % 17.3 -7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TCNS CLOTHING CO. has performed over the last 5 years, please visit here.

TCNS CLOTHING CO. Share Price Performance

Over the last one year, TCNS CLOTHING CO. share price has moved up from Rs 340.0 to Rs 507.7, registering a gain of Rs 167.7 or around 49.3%.

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

(To know more, check out historical annual results for TCNS CLOTHING CO. and quarterly results for TCNS CLOTHING CO.)

Annual Report FAQs

What is the current share price of TCNS CLOTHING CO.?

TCNS CLOTHING CO. currently trades at Rs 448.2 per share. You can check out the latest share price performance of TCNS CLOTHING CO. here...

What was the revenue of TCNS CLOTHING CO. in FY21? How does it compare to earlier years?

The revenues of TCNS CLOTHING CO. stood at Rs 6,845 m in FY21, which was down -41.5% compared to Rs 11,698 m reported in FY20.

TCNS CLOTHING CO.'s revenue has fallen from Rs 6,928 m in FY17 to Rs 6,845 m in FY21.

Over the past 5 years, the revenue of TCNS CLOTHING CO. has grown at a CAGR of -0.3%.

What was the net profit of TCNS CLOTHING CO. in FY21? How does it compare to earlier years?

The net loss of TCNS CLOTHING CO. stood at Rs -564 m in FY21, which was down -181.2% compared to Rs 694 m reported in FY20.

This compares to a net profit of Rs 1,314 m in FY19 and a net profit of Rs 981 m in FY18.

Over the past 5 years, TCNS CLOTHING CO. net profit has grown at a CAGR of NaN%.

What does the cash flow statement of TCNS CLOTHING CO. 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 TCNS CLOTHING CO. reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 1,133 m as compared to Rs 1,310 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -556 m as compared to Rs -25 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -961 m as compared to Rs -971 m in FY20.

Here's the cash flow statement of TCNS CLOTHING CO. for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2514158991,3101,133
From Investments-271-277-1,434-25-556
From Financial Activity12210383-971-961
Net Cashflow-8347-151314-383

What does the Key Ratio analysis of TCNS CLOTHING CO. 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 TCNS CLOTHING CO. reveals:

  • Operating profit margins witnessed a fall and stood at 0.4% in FY21 as against 16.2% in FY20.
  • Net profit margins declined from 6.0% in FY20 to 8.9% 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 TCNS CLOTHING CO. for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.015.715.416.20.4
Net Profit Margin (%)2.39.911.46.0-8.9
Debt to Equity Ratio (x)0.00.10.00.00.0

Read: Latest Annual Report Analysis of TCNS CLOTHING CO.

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