TECH MAHINDRA 2020-21 Annual Report Analysis

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TECH MAHINDRA 2020-21 Annual Report Analysis
Mon, 26 Jul

TECH MAHINDRA 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.

TECH MAHINDRA Income Statement Analysis

  • Operating income during the year rose 2.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY21 as against 14.9% in FY20.
  • Depreciation charges increased by 0.8% and finance costs decreased by 9.3% YoY, respectively.
  • Other income declined by 34.0% YoY.
  • Net profit for the year grew by 11.5% YoY.
  • Net profit margins during the year grew from 10.3% in FY20 to 11.3% in FY21.

TECH MAHINDRA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 368,677 378,551 2.7%
Other income Rs m 11,924 7,871 -34.0%
Total Revenues Rs m 380,601 386,422 1.5%
Gross profit Rs m 55,086 67,963 23.4%
Depreciation Rs m 14,458 14,577 0.8%
Interest Rs m 1,919 1,740 -9.3%
Profit before tax Rs m 50,633 59,517 17.5%
Tax Rs m 11,604 15,999 37.9%
Profit after tax Rs m 39,029 43,518 11.5%
Gross profit margin % 14.9 18.0
Effective tax rate % 22.9 26.9
Net profit margin % 10.3 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TECH MAHINDRA Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 103 billion as compared to Rs 109 billion in FY20, thereby witnessing an decrease of -5.9%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 7.2%.
  • Current assets rose 9% and stood at Rs 253 billion, while fixed assets rose 1% and stood at Rs 135 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 388 billion as against Rs 365 billion during FY20, thereby witnessing a growth of 6%.

TECH MAHINDRA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 213,867 243,943 14.1
 
Current Liabilities Rs m 109,257 102,775 -5.9
Long-term Debt Rs m 1,787 1,658 -7.2
Total Liabilities Rs m 365,092 387,647 6.2
 
Current assets Rs m 231,723 252,553 9.0
Fixed Assets Rs m 133,369 135,094 1.3
Total Assets Rs m 365,092 387,647 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TECH MAHINDRA Cash Flow Statement Analysis

  • TECH MAHINDRA's cash flow from operating activities (CFO) during FY21 stood at Rs 81 billion, an improvement of 85.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -55 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -30 billion, an improvement of 33% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 10 billion net cash flows seen during FY20.

TECH MAHINDRA 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 43,581 80,938 85.7%
Cash Flow from Investing Activities Rs m 10,286 -54,501 -
Cash Flow from Financing Activities Rs m -44,655 -29,869 -
Net Cash Flow Rs m 9,740 -3,263 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TECH MAHINDRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.8, an improvement from the EPS of Rs 44.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,118.0, stands at 24.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.6 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 423.0 433.1
TTM Earnings per share Rs 44.8 49.8
Diluted earnings per share Rs 40.3 44.9
Price to Cash Flow x 18.2 18.6
TTM P/E ratio x 22.4 24.9
Price / Book Value ratio x 2.7 2.8
Market Cap Rs m 974,390 1,082,832
Dividends per share (Unadj.) Rs 15.0 45.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TECH MAHINDRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.1x 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 35.2x during FY21, from 27.4x 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 17.8% during FY21, from 18.2% 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 24.9% during FY21, from 24.4% 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 11.7% during FY21, from 11.2% 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 2.1 2.5
Debtors’ Days Days 75 62
Interest coverage x 27.4 35.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.2 11.7
Return on equity % 18.2 17.8
Return on capital employed % 24.4 24.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TECH MAHINDRA has performed over the last 5 years, please visit here.

TECH MAHINDRA Share Price Performance

Over the last one year, TECH MAHINDRA share price has moved up from Rs 652.8 to Rs 1,118.0, registering a gain of Rs 465.3 or around 71.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,657.7 (up 0.3%). Over the last one year it has moved up from 17,378.1 to 30,657.7, a gain of 13,280 points (up 76.4%).

Overall, the S&P BSE SENSEX is up 39.6% over the year.

(To know more, check out historical annual results for TECH MAHINDRA and quarterly results for TECH MAHINDRA)

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TECH MAHINDRA Announces Quarterly Results (3QFY21); Net Profit Up 16.1% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, TECH MAHINDRA has posted a net profit of Rs 13 bn (up 16.1% YoY). Sales on the other hand came in at Rs 96 bn (down 0.1% YoY). Read on for a complete analysis of TECH MAHINDRA's quarterly results.

TECH MAHINDRA Announces Quarterly Results (2QFY21); Net Profit Down 4.3% (Quarterly Result Update)

Oct 26, 2020 | Updated on Oct 26, 2020

For the quarter ended September 2020, TECH MAHINDRA has posted a net profit of Rs 11 bn (down 4.3% YoY). Sales on the other hand came in at Rs 94 bn (up 3.3% YoY). Read on for a complete analysis of TECH MAHINDRA's quarterly results.

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