TECHNOCRAFT 2021-22 Annual Report Analysis

Tue, 20 Sep

TECHNOCRAFT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TECHNOCRAFT Income Statement Analysis

• Operating income during the year rose 47.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY22 as against 17.5% in FY21.
• Depreciation charges decreased by 6.8% and finance costs decreased by 26.2% YoY, respectively.
• Other income declined by 17.9% YoY.
• Net profit for the year grew by 87.0% YoY.
• Net profit margins during the year grew from 11.3% in FY21 to 14.4% in FY22.

TECHNOCRAFT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,945	19,111	47.6%
Other income	Rs m	578	474	-17.9%
Total Revenues	Rs m	13,523	19,586	44.8%
Gross profit	Rs m	2,260	3,968	75.6%
Depreciation	Rs m	675	629	-6.8%
Interest	Rs m	288	213	-26.2%
Profit before tax	Rs m	1,874	3,601	92.1%
Tax	Rs m	406	855	110.6%
Profit after tax	Rs m	1,468	2,746	87.0%
Gross profit margin	%	17.5	20.8
Effective tax rate	%	21.7	23.7
Net profit margin	%	11.3	14.4

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TECHNOCRAFT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 10 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 23.0%.
• Long-term debt down at Rs 478 million as compared to Rs 1 billion during FY21, a fall of 54.7%.
• Current assets rose 22% and stood at Rs 18 billion, while fixed assets rose 14% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 21 billion during FY21, thereby witnessing a growth of 20%.

TECHNOCRAFT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	10,725	13,367	24.6
Current Liabilities	Rs m	8,424	10,361	23.0
Long-term Debt	Rs m	1,057	478	-54.7
Total Liabilities	Rs m	20,722	24,770	19.5
Current assets	Rs m	14,479	17,717	22.4
Fixed Assets	Rs m	6,162	7,002	13.6
Total Assets	Rs m	20,722	24,770	19.5

TECHNOCRAFT Cash Flow Statement Analysis

• TECHNOCRAFT's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 333.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 205 million, an improvement of 110% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -37 million from the Rs 131 million net cash flows seen during FY21.

TECHNOCRAFT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,584	1,076	-58.4%
Cash Flow from Investing Activities	Rs m	-304	-1,317	-
Cash Flow from Financing Activities	Rs m	-2,149	205	-
Net Cash Flow	Rs m	131	-37	-

Current Valuations for TECHNOCRAFT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 112.3, an improvement from the EPS of Rs 60.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 839.1, stands at 7.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	529.2	781.3
TTM Earnings per share	Rs	60.0	112.3
Diluted earnings per share	Rs	60.0	112.2
Price to Cash Flow	x	4.5	5.3
TTM P/E ratio	x	6.6	7.5
Price / Book Value ratio	x	0.7	1.3
Market Cap	Rs m	7,510	17,930
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TECHNOCRAFT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.7x during FY21. 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 17.9x during FY22, from 7.5x during FY21. 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 20.5% during FY22, from 13.7% during FY22. 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 27.5% during FY22, from 18.4% during FY21. 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 11.9% during FY22, from 8.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	1.7
Debtors’ Days	Days	974	872
Interest coverage	x	7.5	17.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.5	11.9
Return on equity	%	13.7	20.5
Return on capital employed	%	18.4	27.5

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 815.0 to Rs 839.1, registering a gain of Rs 24.2 or around 3.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 32,688.2 (up 0.7%). Over the last one year it has moved up from 25,755.4 to 32,688.2, a gain of 6,933 points (up 26.9%).

Overall, the S&P BSE SENSEX is up 0.9% over the year.

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

Read: Latest Annual Report Analysis of TECHNOCRAFT