TITAN 2021-22 Annual Report Analysis

Wed, 6 Jul

TITAN 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.

TITAN Income Statement Analysis

• Operating income during the year rose 33.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY22 as against 8.0% in FY21.
• Depreciation charges increased by 6.4% and finance costs increased by 7.4% YoY, respectively.
• Other income grew by 27.3% YoY.
• Net profit for the year grew by 124.5% YoY.
• Net profit margins during the year grew from 4.5% in FY21 to 7.6% in FY22.

TITAN Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	216,440	287,990	33.1%
Other income	Rs m	1,870	2,380	27.3%
Total Revenues	Rs m	218,310	290,370	33.0%
Gross profit	Rs m	17,230	32,830	90.5%
Depreciation	Rs m	3,750	3,990	6.4%
Interest	Rs m	2,030	2,180	7.4%
Profit before tax	Rs m	13,320	29,040	118.0%
Tax	Rs m	3,530	7,060	100.0%
Profit after tax	Rs m	9,790	21,980	124.5%
Gross profit margin	%	8.0	11.4
Effective tax rate	%	26.5	24.3
Net profit margin	%	4.5	7.6

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TITAN Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 105 billion as compared to Rs 77 billion in FY21, thereby witnessing an increase of 36.3%.
• Long-term debt down at Rs 20 million as compared to Rs 90 million during FY21, a fall of 77.8%.
• Current assets rose 32% and stood at Rs 175 billion, while fixed assets rose 13% and stood at Rs 36 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 210 billion as against Rs 163 billion during FY21, thereby witnessing a growth of 29%.

TITAN Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	74,930	92,970	24.1
Current Liabilities	Rs m	77,140	105,120	36.3
Long-term Debt	Rs m	90	20	-77.8
Total Liabilities	Rs m	163,470	210,070	28.5
Current assets	Rs m	131,970	174,540	32.3
Fixed Assets	Rs m	31,500	35,530	12.8
Total Assets	Rs m	163,470	210,070	28.5

TITAN Cash Flow Statement Analysis

• TITAN's cash flow from operating activities (CFO) during FY22 stood at Rs -7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 380 million from the Rs 1 billion net cash flows seen during FY21.

TITAN 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	41,390	-7,240	-
Cash Flow from Investing Activities	Rs m	-28,010	11,640	-
Cash Flow from Financing Activities	Rs m	-12,340	-4,030	-
Net Cash Flow	Rs m	1,060	380	-64.2%

Current Valuations for TITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.8, an improvement from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,013.4, stands at 81.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.2 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 71.2 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	243.8	324.4
TTM Earnings per share	Rs	11.0	24.8
Diluted earnings per share	Rs	11.0	24.8
Price to Cash Flow	x	102.1	71.2
TTM P/E ratio	x	141.2	81.3
Price / Book Value ratio	x	14.4	19.9
Market Cap	Rs m	1,079,032	1,850,264
Dividends per share (Unadj.)	Rs	4.0	7.5

Ratio Analysis for TITAN

• 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 14.3x during FY22, from 7.6x 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 23.6% during FY22, from 13.1% 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 33.6% during FY22, from 20.5% 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 11.5% during FY22, from 7.2% 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	1	1
Interest coverage	x	7.6	14.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.2	11.5
Return on equity	%	13.1	23.6
Return on capital employed	%	20.5	33.6

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

TITAN Share Price Performance

Over the last one year, TITAN share price has moved up from Rs 1,763.3 to Rs 2,013.4, registering a gain of Rs 250.1 or around 14.2%.

Overall, the S&P BSE SENSEX is up 1.6% over the year.

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

Read: Latest Annual Report Analysis of TITAN