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TECHNOCRAFT 2020-21 Annual Report Analysis
Wed, 31 Mar

TECHNOCRAFT 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.

TECHNOCRAFT Income Statement Analysis

  • Operating income during the year fell 7.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY21 as against 14.9% in FY20.
  • Depreciation charges increased by 28.9% and finance costs decreased by 23.1% YoY, respectively.
  • Other income grew by 37.6% YoY.
  • Net profit for the year grew by 6.3% YoY.
  • Net profit margins during the year grew from 9.0% in FY20 to 10.4% in FY21.

TECHNOCRAFT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 14,032 12,945 -7.7%
Other income Rs m 423 582 37.6%
Total Revenues Rs m 14,455 13,527 -6.4%
Gross profit Rs m 2,088 2,086 -0.1%
Depreciation Rs m 524 675 28.9%
Interest Rs m 375 288 -23.1%
Profit before tax Rs m 1,612 1,705 5.8%
Tax Rs m 350 364 4.0%
Profit after tax Rs m 1,262 1,341 6.3%
Gross profit margin % 14.9 16.1
Effective tax rate % 21.7 21.3
Net profit margin % 9.0 10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

TECHNOCRAFT Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 8 billion as compared to Rs 10 billion in FY20, thereby witnessing an decrease of -12.3%.
  • Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY20, a fall of 22.2%.
  • Current assets fell 0% and stood at Rs 15 billion, while fixed assets fell 2% and stood at Rs 6 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 21 billion during FY20, thereby witnessing a fall of 1%.

TECHNOCRAFT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,443 10,725 13.6
 
Current Liabilities Rs m 9,604 8,424 -12.3
Long-term Debt Rs m 1,358 1,057 -22.2
Total Liabilities Rs m 20,891 20,722 -0.8
 
Current assets Rs m 14,619 14,560 -0.4
Fixed Assets Rs m 6,272 6,162 -1.8
Total Assets Rs m 20,891 20,722 -0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TECHNOCRAFT Cash Flow Statement Analysis

  • TECHNOCRAFT's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 28.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -303 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 131 million from the Rs 120 million net cash flows seen during FY20.

TECHNOCRAFT 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 2,014 2,583 28.2%
Cash Flow from Investing Activities Rs m -1,646 -303 -
Cash Flow from Financing Activities Rs m -248 -2,149 -
Net Cash Flow Rs m 120 131 9.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TECHNOCRAFT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.8, an improvement from the EPS of Rs 51.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 393.5, stands at 6.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.7 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 573.7 529.2
TTM Earnings per share Rs 51.6 54.8
Diluted earnings per share Rs 51.6 54.8
Price to Cash Flow x 2.3 3.7
TTM P/E ratio x 3.2 6.6
Price / Book Value ratio x 0.9 0.7
Market Cap Rs m 8,853 7,510
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TECHNOCRAFT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.5x 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 6.9x during FY21, from 5.3x 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 12.5% during FY21, from 13.4% 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 16.9% during FY21, from 18.4% 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 7.9% during FY21, from 7.8% 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 1.5 1.7
Debtors’ Days Days 889 974
Interest coverage x 5.3 6.9
Debt to equity ratio x 0.1 0.1
Return on assets % 7.8 7.9
Return on equity % 13.4 12.5
Return on capital employed % 18.4 16.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TECHNOCRAFT Share Price Performance

Over the last one year, TECHNOCRAFT share price has moved up from Rs 170.4 to Rs 393.5, registering a gain of Rs 223.1 or around 130.9%.

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 TECHNOCRAFT and quarterly results for TECHNOCRAFT)

Annual Report FAQs

What is the current share price of TECHNOCRAFT?

TECHNOCRAFT currently trades at Rs 1,975.2 per share. You can check out the latest share price performance of TECHNOCRAFT here...

What was the revenue of TECHNOCRAFT in FY21? How does it compare to earlier years?

The revenues of TECHNOCRAFT stood at Rs 13,527 m in FY21, which was down -6.4% compared to Rs 14,455 m reported in FY20.

TECHNOCRAFT's revenue has grown from Rs 9,693 m in FY17 to Rs 13,527 m in FY21.

Over the past 5 years, the revenue of TECHNOCRAFT has grown at a CAGR of 8.7%.

What was the net profit of TECHNOCRAFT in FY21? How does it compare to earlier years?

The net profit of TECHNOCRAFT stood at Rs 1,341 m in FY21, which was up 6.3% compared to Rs 1,262 m reported in FY20.

This compares to a net profit of Rs 1,190 m in FY19 and a net profit of Rs 1,200 m in FY18.

Over the past 5 years, TECHNOCRAFT net profit has grown at a CAGR of 7.2%.

What does the cash flow statement of TECHNOCRAFT 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 TECHNOCRAFT reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,583 m as compared to Rs 2,014 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -303 m as compared to Rs -1,646 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -2,149 m as compared to Rs -248 m in FY20.

Here's the cash flow statement of TECHNOCRAFT for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations541-2662652,0142,583
From Investments-491-409-1,167-1,646-303
From Financial Activity-75530982-248-2,149
Net Cashflow-25-14579120131

What does the Key Ratio analysis of TECHNOCRAFT 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 TECHNOCRAFT reveals:

  • Operating profit margins witnessed a fall and down at 16.1% in FY21 as against 14.9% in FY20.
  • Net profit margins grew from 9.0% in FY20 to 10.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of TECHNOCRAFT for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)15.714.415.014.916.1
Net Profit Margin (%)10.910.29.19.010.4
Debt to Equity Ratio (x)0.00.10.10.10.1

Read: Latest Annual Report Analysis of TECHNOCRAFT

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