TTK PRESTIGE 2020-21 Annual Report Analysis

Wed, 31 Mar

TTK PRESTIGE 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.

TTK PRESTIGE Income Statement Analysis

• Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.2% in FY21 as against 12.3% in FY20.
• Depreciation charges increased by 9.3% and finance costs decreased by 28.6% YoY, respectively.
• Other income grew by 16.4% YoY.
• Net profit for the year grew by 28.3% YoY.
• Net profit margins during the year grew from 8.9% in FY20 to 10.8% in FY21.

TTK PRESTIGE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,730	21,901	5.6%
Other income	Rs m	247	287	16.4%
Total Revenues	Rs m	20,977	22,188	5.8%
Gross profit	Rs m	2,545	3,338	31.2%
Depreciation	Rs m	366	400	9.3%
Interest	Rs m	81	58	-28.6%
Profit before tax	Rs m	2,344	3,168	35.1%
Tax	Rs m	499	800	60.4%
Profit after tax	Rs m	1,845	2,368	28.3%
Gross profit margin	%	12.3	15.2
Effective tax rate	%	21.3	25.2
Net profit margin	%	8.9	10.8

TTK PRESTIGE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 2.4%.
• Long-term debt stood at Rs 404 million as compared to Rs 186 million during FY20, a growth of 116.9%.
• Current assets rose 17% and stood at Rs 14 billion, while fixed assets rose 5% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 18 billion during FY20, thereby witnessing a growth of 13%.

TTK PRESTIGE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,063	15,050	15.2
Current Liabilities	Rs m	4,121	4,220	2.4
Long-term Debt	Rs m	186	404	116.9
Total Liabilities	Rs m	18,015	20,384	13.1
Current assets	Rs m	11,881	13,960	17.5
Fixed Assets	Rs m	6,134	6,424	4.7
Total Assets	Rs m	18,015	20,384	13.1

TTK PRESTIGE Cash Flow Statement Analysis

• TTK PRESTIGE's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 11.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -821 million, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 227 million from the Rs -257 million net cash flows seen during FY20.

TTK PRESTIGE 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	2,531	2,820	11.4%
Cash Flow from Investing Activities	Rs m	-1,837	-1,772	-
Cash Flow from Financing Activities	Rs m	-951	-821	-
Net Cash Flow	Rs m	-257	227	-

Current Valuations for TTK PRESTIGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 170.8, an improvement from the EPS of Rs 133.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,286.3, stands at 415.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 67.1 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.3 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	1,495.7	1,580.2
TTM Earnings per share	Rs	133.1	170.8
Diluted earnings per share	Rs	13.3	17.1
Price to Cash Flow	x	307.1	31.3
TTM P/E ratio	x	367.9	415.8
Price / Book Value ratio	x	6.7	5.8
Market Cap	Rs m	87,466	86,670
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for TTK PRESTIGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY21, from 2.9x 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 55.5x during FY21, from 29.8x 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 15.7% 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 20.9% during FY21, from 18.3% 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 11.9% during FY21, from 10.7% 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	2.9	3.3
Debtors’ Days	Days	5	5
Interest coverage	x	29.8	55.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.7	11.9
Return on equity	%	14.1	15.7
Return on capital employed	%	18.3	20.9

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

TTK PRESTIGE Share Price Performance

Over the last one year, TTK PRESTIGE share price has moved up from Rs 4,898.2 to Rs 7,286.3, registering a gain of Rs 2,388.1 or around 48.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

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

Read: Latest Annual Report Analysis of TTK PRESTIGE