THANGAMAYIL JEWELLERY 2020-21 Annual Report Analysis

Wed, 31 Mar

THANGAMAYIL JEWELLERY 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.

THANGAMAYIL JEWELLERY Income Statement Analysis

• Operating income during the year rose 7.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.8% in FY21 as against 5.8% in FY20.
• Depreciation charges decreased by 7.0% and finance costs increased by 8.3% YoY, respectively.
• Other income grew by 175.7% YoY.
• Net profit for the year grew by 89.6% YoY.
• Net profit margins during the year grew from 2.7% in FY20 to 4.8% in FY21.

THANGAMAYIL JEWELLERY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,920	18,186	7.5%
Other income	Rs m	30	83	175.7%
Total Revenues	Rs m	16,950	18,270	7.8%
Gross profit	Rs m	977	1,410	44.3%
Depreciation	Rs m	102	95	-7.0%
Interest	Rs m	212	229	8.3%
Profit before tax	Rs m	694	1,170	68.5%
Tax	Rs m	238	304	27.9%
Profit after tax	Rs m	457	866	89.6%
Gross profit margin	%	5.8	7.8
Effective tax rate	%	34.2	26.0
Net profit margin	%	2.7	4.8

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THANGAMAYIL JEWELLERY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an decrease of -5.7%.
• Long-term debt stood at Rs 617 million as compared to Rs 549 million during FY20, a growth of 12.3%.
• Current assets rose 10% and stood at Rs 7 billion, while fixed assets fell 1% and stood at Rs 918 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 8%.

THANGAMAYIL JEWELLERY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,201	2,979	35.3
Current Liabilities	Rs m	4,315	4,069	-5.7
Long-term Debt	Rs m	549	617	12.3
Total Liabilities	Rs m	7,149	7,741	8.3
Current assets	Rs m	6,221	6,823	9.7
Fixed Assets	Rs m	928	918	-1.1
Total Assets	Rs m	7,149	7,741	8.3

THANGAMAYIL JEWELLERY Cash Flow Statement Analysis

• THANGAMAYIL JEWELLERY's cash flow from operating activities (CFO) during FY21 stood at Rs 552 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 176 million, an improvement of 122.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -645 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 83 million from the Rs -70 million net cash flows seen during FY20.

THANGAMAYIL JEWELLERY 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	-392	552	-
Cash Flow from Investing Activities	Rs m	79	176	122.3%
Cash Flow from Financing Activities	Rs m	243	-645	-
Net Cash Flow	Rs m	-70	83	-

Current Valuations for THANGAMAYIL JEWELLERY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.1, an improvement from the EPS of Rs 33.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 587.2, stands at 9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	1,233.2	1,325.5
TTM Earnings per share	Rs	33.3	63.1
Diluted earnings per share	Rs	33.3	63.1
Price to Cash Flow	x	5.9	6.4
TTM P/E ratio	x	7.2	9.3
Price / Book Value ratio	x	2.3	2.1
Market Cap	Rs m	4,969	6,120
Dividends per share (Unadj.)	Rs	5.0	10.0

Ratio Analysis for THANGAMAYIL JEWELLERY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x 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 6.1x during FY21, from 4.3x 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 improved and stood at 29.1% during FY21, from 20.7% 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 38.9% during FY21, from 32.9% 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 14.1% during FY21, from 9.3% 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	1.4	1.7
Debtors’ Days	Days	0	5
Interest coverage	x	4.3	6.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	9.3	14.1
Return on equity	%	20.7	29.1
Return on capital employed	%	32.9	38.9

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

THANGAMAYIL JEWELLERY Share Price Performance

Over the last one year, THANGAMAYIL JEWELLERY share price has moved up from Rs 241.0 to Rs 587.2, registering a gain of Rs 346.2 or around 143.6%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of THANGAMAYIL JEWELLERY