TRANSCORP INTERN. 2021-22 Annual Report Analysis

Wed, 8 Jun

TRANSCORP INTERN. 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.

TRANSCORP INTERN. Income Statement Analysis

• Operating income during the year rose 152.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 63.7% YoY during the fiscal. Operating profit margins witnessed a growth and down at 0.1% in FY22 as against 0.4% in FY21.
• Depreciation charges decreased by 10.0% and finance costs decreased by 19.1% YoY, respectively.
• Other income declined by 50.0% YoY.
• Net profit for the year grew by 12.5% YoY.
• Net profit margins during the year grew from 0.5% in FY21 to 0.2% in FY22.

TRANSCORP INTERN. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,174	23,162	152.5%
Other income	Rs m	49	24	-50.0%
Total Revenues	Rs m	9,222	23,186	151.4%
Gross profit	Rs m	-37	-14	-63.7%
Depreciation	Rs m	24	22	-10.0%
Interest	Rs m	55	44	-19.1%
Profit before tax	Rs m	-68	-55	-18.0%
Tax	Rs m	-21	-3	-85.7%
Profit after tax	Rs m	-47	-52	12.5%
Gross profit margin	%	-0.4	-0.1
Effective tax rate	%	31.2	5.4
Net profit margin	%	-0.5	-0.2

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TRANSCORP INTERN. Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 648 million as compared to Rs 655 million in FY21, thereby witnessing an decrease of -1.1%.
• Long-term debt down at Rs 77 million as compared to Rs 85 million during FY21, a fall of 9.4%.
• Current assets rose 32% and stood at Rs 686 million, while fixed assets fell 12% and stood at Rs 550 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 8%.

TRANSCORP INTERN. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	448	562	25.5
Current Liabilities	Rs m	655	648	-1.1
Long-term Debt	Rs m	85	77	-9.4
Total Liabilities	Rs m	1,147	1,236	7.8
Current assets	Rs m	521	686	31.7
Fixed Assets	Rs m	626	550	-12.2
Total Assets	Rs m	1,147	1,236	7.8

TRANSCORP INTERN. Cash Flow Statement Analysis

• TRANSCORP INTERN.'s cash flow from operating activities (CFO) during FY22 stood at Rs 234 million, an improvement of 167.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 203 million, an improvement of 1,063.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -350 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 87 million from the Rs 66 million net cash flows seen during FY21.

TRANSCORP INTERN. 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	87	234	167.8%
Cash Flow from Investing Activities	Rs m	17	203	1,063.3%
Cash Flow from Financing Activities	Rs m	-39	-350	-
Net Cash Flow	Rs m	66	87	32.1%

Current Valuations for TRANSCORP INTERN.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.7, an decline from the EPS of Rs -1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.2, stands at -12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at -20.0 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	288.7	728.8
TTM Earnings per share	Rs	-1.5	-1.7
Diluted earnings per share	Rs	-1.5	-1.7
Price to Cash Flow	x	-13.2	-20.0
TTM P/E ratio	x	-6.4	-12.8
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	325	611
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for TRANSCORP INTERN.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 0.8x 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 deteriorated and stood at -0.3x during FY22, from -0.2x 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 -9.3% during FY22, from -10.4% 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 -1.7% during FY22, from -2.4% 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 declined and down at -0.7% during FY22, from 0.7% 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	0.8	1.1
Debtors’ Days	Days	52	21
Interest coverage	x	-0.2	-0.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	0.7	-0.7
Return on equity	%	-10.4	-9.3
Return on capital employed	%	-2.4	-1.7

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

TRANSCORP INTERN. Share Price Performance

Over the last one year, TRANSCORP INTERN. share price has moved up from Rs 11.9 to Rs 21.2, registering a gain of Rs 9.3 or around 77.9%.

Overall, the S&P BSE SENSEX is up 5.5% over the year.

(To know more, check out historical annual results for TRANSCORP INTERN. and quarterly results for TRANSCORP INTERN.)