TEAMLEASE SERVICES 2020-21 Annual Report Analysis

Wed, 31 Mar

TEAMLEASE SERVICES 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.

TEAMLEASE SERVICES Income Statement Analysis

• Operating income during the year fell 6.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.4% in FY21 as against 1.8% in FY20.
• Depreciation charges increased by 17.9% and finance costs decreased by 43.9% YoY, respectively.
• Other income grew by 83.9% YoY.
• Net profit for the year grew by 114.7% YoY.
• Net profit margins during the year grew from 0.7% in FY20 to 1.6% in FY21.

TEAMLEASE SERVICES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	52,007	48,815	-6.1%
Other income	Rs m	331	608	83.9%
Total Revenues	Rs m	52,338	49,423	-5.6%
Gross profit	Rs m	929	694	-25.3%
Depreciation	Rs m	286	337	17.9%
Interest	Rs m	123	69	-43.9%
Profit before tax	Rs m	851	896	5.4%
Tax	Rs m	480	101	-79.0%
Profit after tax	Rs m	371	796	114.7%
Gross profit margin	%	1.8	1.4
Effective tax rate	%	56.4	11.2
Net profit margin	%	0.7	1.6

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TEAMLEASE SERVICES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -4.6%.
• Current assets rose 47% and stood at Rs 8 billion, while fixed assets fell 30% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 5%.

TEAMLEASE SERVICES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,640	6,501	15.3
Current Liabilities	Rs m	5,740	5,478	-4.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,408	13,058	5.2
Current assets	Rs m	5,674	8,346	47.1
Fixed Assets	Rs m	6,734	4,712	-30.0
Total Assets	Rs m	12,408	13,058	5.2

TEAMLEASE SERVICES Cash Flow Statement Analysis

• TEAMLEASE SERVICES 's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 3,029.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -123 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -444 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -377 million net cash flows seen during FY20.

TEAMLEASE SERVICES 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	97	3,033	3,029.0%
Cash Flow from Investing Activities	Rs m	-473	-123	-
Cash Flow from Financing Activities	Rs m	-1	-444	-
Net Cash Flow	Rs m	-377	2,467	-

Current Valuations for TEAMLEASE SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.5, an improvement from the EPS of Rs 21.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,763.4, stands at 80.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 39.8 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	3,041.4	2,854.7
TTM Earnings per share	Rs	21.7	46.5
Diluted earnings per share	Rs	21.7	46.5
Price to Cash Flow	x	39.8	39.8
TTM P/E ratio	x	70.4	80.9
Price / Book Value ratio	x	7.0	6.9
Market Cap	Rs m	39,434	45,033
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TEAMLEASE SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.0x 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 14.0x during FY21, from 7.9x 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 12.2% during FY21, from 6.6% 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 14.8% 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 improved and stood at 6.6% during FY21, from 4.0% 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	1.0	1.5
Debtors’ Days	Days	208	208
Interest coverage	x	7.9	14.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.0	6.6
Return on equity	%	6.6	12.2
Return on capital employed	%	17.3	14.8

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

TEAMLEASE SERVICES Share Price Performance

Over the last one year, TEAMLEASE SERVICES share price has moved up from Rs 1,526.5 to Rs 3,763.4, registering a gain of Rs 2,236.9 or around 146.5%.

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

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

Read: Latest Annual Report Analysis of TEAMLEASE SERVICES