TECHNO ELECTRIC & ENG 2020-21 Annual Report Analysis

Wed, 31 Mar

TECHNO ELECTRIC & ENG 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.

TECHNO ELECTRIC & ENG Income Statement Analysis

• Operating income during the year rose 1.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.8% in FY21 as against 25.1% in FY20.
• Depreciation charges decreased by 1.0% and finance costs increased by 27.5% YoY, respectively.
• Other income grew by 43.8% YoY.
• Net profit for the year grew by 3.4% YoY.
• Net profit margins during the year grew from 20.5% in FY20 to 20.9% in FY21.

TECHNO ELECTRIC & ENG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,668	8,780	1.3%
Other income	Rs m	465	669	43.8%
Total Revenues	Rs m	9,133	9,449	3.5%
Gross profit	Rs m	2,174	2,176	0.1%
Depreciation	Rs m	416	411	-1.0%
Interest	Rs m	74	94	27.5%
Profit before tax	Rs m	2,150	2,339	8.8%
Tax	Rs m	373	503	34.8%
Profit after tax	Rs m	1,777	1,836	3.4%
Gross profit margin	%	25.1	24.8
Effective tax rate	%	17.4	21.5
Net profit margin	%	20.5	20.9

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TECHNO ELECTRIC & ENG Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 2.0%.
• Current assets rose 15% and stood at Rs 16 billion, while fixed assets fell 4% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 23 billion during FY20, thereby witnessing a growth of 7%.

TECHNO ELECTRIC & ENG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,965	16,162	8.0
Current Liabilities	Rs m	4,223	4,305	2.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	23,382	25,106	7.4
Current assets	Rs m	13,964	16,102	15.3
Fixed Assets	Rs m	9,418	9,004	-4.4
Total Assets	Rs m	23,382	25,106	7.4

TECHNO ELECTRIC & ENG Cash Flow Statement Analysis

• TECHNO ELECTRIC & ENG's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 12.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -543 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -338 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 373 million from the Rs -113 million net cash flows seen during FY20.

TECHNO ELECTRIC & ENG 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	1,115	1,254	12.4%
Cash Flow from Investing Activities	Rs m	379	-543	-
Cash Flow from Financing Activities	Rs m	-1,607	-338	-
Net Cash Flow	Rs m	-113	373	-

Current Valuations for TECHNO ELECTRIC & ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 306.0, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	78.8	79.8
TTM Earnings per share	Rs	16.2	16.7
Diluted earnings per share	Rs	16.2	16.7
Price to Cash Flow	x	11.8	12.2
TTM P/E ratio	x	14.6	18.3
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	28,031	27,338
Dividends per share (Unadj.)	Rs	0.0	10.0

Ratio Analysis for TECHNO ELECTRIC & ENG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY21, from 3.3x 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 25.9x during FY21, from 30.1x 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 11.4% during FY21, from 11.9% 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 15.1% during FY21, from 14.9% 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 7.9% 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	3.3	3.7
Debtors’ Days	Days	2,418	2,204
Interest coverage	x	30.1	25.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	7.7
Return on equity	%	11.9	11.4
Return on capital employed	%	14.9	15.1

To see how TECHNO ELECTRIC & ENG has performed over the last 5 years, please visit here.

TECHNO ELECTRIC & ENG Share Price Performance

Over the last one year, TECHNO ELECTRIC & ENG share price has moved up from Rs 235.2 to Rs 306.0, registering a gain of Rs 70.8 or around 30.1%.

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 TECHNO ELECTRIC & ENG and quarterly results for TECHNO ELECTRIC & ENG)

Read: Latest Annual Report Analysis of TECHNO ELECTRIC & ENG