TIPS IND. 2020-21 Annual Report Analysis

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TIPS IND. 2020-21 Annual Report Analysis
Fri, 19 Nov

TIPS IND. 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.

TIPS IND. Income Statement Analysis

  • Operating income during the year fell 0.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 2844.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 60.9% in FY21 as against 2.2% in FY20.
  • Depreciation charges decreased by 31.2% and finance costs decreased by 92.6% YoY, respectively.
  • Other income declined by 72.6% YoY.
  • Net profit for the year grew by 283.4% YoY.
  • Net profit margins during the year grew from 10.4% in FY20 to 45.6% in FY21.

TIPS IND. Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 910 905 -0.5%
Other income Rs m 178 49 -72.6%
Total Revenues Rs m 1,088 954 -12.3%
Gross profit Rs m -20 552 -2,844.5%
Depreciation Rs m 12 8 -31.2%
Interest Rs m 3 0 -92.6%
Profit before tax Rs m 144 592 312.5%
Tax Rs m 30 158 422.2%
Profit after tax Rs m 113 435 283.4%
Gross profit margin % -2.2 60.9
Effective tax rate % 21.0 26.6
Net profit margin % 10.4 45.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALERT: Top Investment Recommendation for 2022

TIPS IND. Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 289 million as compared to Rs 128 million in FY20, thereby witnessing an increase of 125.8%.
  • Current assets rose 85% and stood at Rs 1 billion, while fixed assets rose 38% and stood at Rs 374 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 980 million during FY20, thereby witnessing a growth of 72%.

TIPS IND. Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 804 1,013 26.0
 
Current Liabilities Rs m 128 289 125.8
Long-term Debt Rs m 19 0 -100.0
Total Liabilities Rs m 980 1,687 72.1
 
Current assets Rs m 708 1,313 85.4
Fixed Assets Rs m 272 374 37.7
Total Assets Rs m 980 1,687 72.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TIPS IND. Cash Flow Statement Analysis

  • TIPS IND.'s cash flow from operating activities (CFO) during FY21 stood at Rs 412 million, an improvement of 35.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -115 million, an improvement of 146.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -246 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 51 million from the Rs 173 million net cash flows seen during FY20.

TIPS IND. 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 305 412 35.1%
Cash Flow from Investing Activities Rs m -47 -115 -
Cash Flow from Financing Activities Rs m -86 -246 -
Net Cash Flow Rs m 173 51 -70.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TIPS IND.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.5, an improvement from the EPS of Rs 7.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,393.5, stands at 27.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 40.8 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 63.5 69.8
TTM Earnings per share Rs 7.9 33.5
Diluted earnings per share Rs 8.7 33.5
Price to Cash Flow x 159.4 40.8
TTM P/E ratio x 30.1 27.3
Price / Book Value ratio x 1.6 3.9
Market Cap Rs m 19,953 18,072
Dividends per share (Unadj.) Rs 1.5 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TIPS IND.

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 4.5x during FY21, from 5.5x 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 2,821.2x during FY21, from 51.7x 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 improved and stood at 42.9% during FY21, from 14.1% 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 58.5% during FY21, from 17.8% 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 25.8% during FY21, from 11.9% 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 5.5 4.5
Debtors’ Days Days 728 608
Interest coverage x 51.7 2,821.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.9 25.8
Return on equity % 14.1 42.9
Return on capital employed % 17.8 58.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TIPS IND. Share Price Performance

Over the last one year, TIPS IND. share price has moved up from Rs 265.7 to Rs 1,393.5, registering a gain of Rs 1,127.8 or around 424.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,607.6 (down 1.3%). Over the last one year it has moved up from 9,813.3 to 15,607.6, a gain of 5,794 points (up 59.0%).

Overall, the S&P BSE SENSEX is up 35.7% over the year.

(To know more, check out historical annual results for TIPS IND. and quarterly results for TIPS IND.)

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