EXPLEO SOLUTIONS 2020-21 Annual Report Analysis

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EXPLEO SOLUTIONS 2020-21 Annual Report Analysis
Sat, 30 Oct

EXPLEO SOLUTIONS 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.

EXPLEO SOLUTIONS Income Statement Analysis

  • Operating income during the year rose 11.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 31.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY21 as against 19.7% in FY20.
  • Depreciation charges decreased by 0.3% and finance costs decreased by 4.7% YoY, respectively.
  • Other income declined by 30.2% YoY.
  • Net profit for the year grew by 26.4% YoY.
  • Net profit margins during the year grew from 14.4% in FY20 to 16.5% in FY21.

EXPLEO SOLUTIONS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 2,702 3,009 11.4%
Other income Rs m 78 54 -30.2%
Total Revenues Rs m 2,780 3,063 10.2%
Gross profit Rs m 532 698 31.2%
Depreciation Rs m 58 58 -0.3%
Interest Rs m 11 11 -4.7%
Profit before tax Rs m 541 684 26.5%
Tax Rs m 142 180 26.9%
Profit after tax Rs m 399 504 26.4%
Gross profit margin % 19.7 23.2
Effective tax rate % 26.2 26.3
Net profit margin % 14.4 16.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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EXPLEO SOLUTIONS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 549 million as compared to Rs 534 million in FY20, thereby witnessing an increase of 2.8%.
  • Current assets rose 27% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 368 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 24%.

EXPLEO SOLUTIONS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,521 2,017 32.7
 
Current Liabilities Rs m 534 549 2.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 2,126 2,627 23.6
 
Current assets Rs m 1,774 2,259 27.3
Fixed Assets Rs m 351 368 4.6
Total Assets Rs m 2,126 2,627 23.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EXPLEO SOLUTIONS Cash Flow Statement Analysis

  • EXPLEO SOLUTIONS's cash flow from operating activities (CFO) during FY21 stood at Rs 664 million, an improvement of 297.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -429 million, an improvement of 417.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -28 million, an improvement of 90% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 193 million from the Rs -189 million net cash flows seen during FY20.

EXPLEO SOLUTIONS 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 167 664 297.6%
Cash Flow from Investing Activities Rs m -83 -429 -
Cash Flow from Financing Activities Rs m -289 -28 -
Net Cash Flow Rs m -189 193 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EXPLEO SOLUTIONS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.2, an improvement from the EPS of Rs 38.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,112.2, stands at 23.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.3 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 263.6 293.6
TTM Earnings per share Rs 38.9 49.2
Diluted earnings per share Rs 38.9 49.2
Price to Cash Flow x 24.9 20.3
TTM P/E ratio x 23.3 23.3
Price / Book Value ratio x 2.1 2.0
Market Cap Rs m 11,402 11,402
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EXPLEO SOLUTIONS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.1x 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 improved and stood at 65.8x during FY21, from 49.8x 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 25.0% during FY21, from 26.2% 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 declined and down at 34.4% during FY21, from 36.3% 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 19.6% during FY21, from 19.3% 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 3.3 4.1
Debtors’ Days Days 103 74
Interest coverage x 49.8 65.8
Debt to equity ratio x 0.0 0.0
Return on assets % 19.3 19.6
Return on equity % 26.2 25.0
Return on capital employed % 36.3 34.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how EXPLEO SOLUTIONS has performed over the last 5 years, please visit here.

EXPLEO SOLUTIONS Share Price Performance

Over the last one year, EXPLEO SOLUTIONS share price has moved up from Rs 529.9 to Rs 1,112.2, registering a gain of Rs 582.3 or around 109.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 33,491.4 (down 1.6%). Over the last one year it has moved up from 21,058.8 to 33,491.4, a gain of 12,433 points (up 59.0%).

Overall, the S&P BSE SENSEX is up 48.6% over the year.

(To know more, check out historical annual results for EXPLEO SOLUTIONS and quarterly results for EXPLEO SOLUTIONS)

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