TRANSPORT CORP 2020-21 Annual Report Analysis

Wed, 31 Mar

TRANSPORT CORP 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.

TRANSPORT CORP Income Statement Analysis

• Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.9% in FY21 as against 8.5% in FY20.
• Depreciation charges increased by 12.5% and finance costs decreased by 22.2% YoY, respectively.
• Other income grew by 26.6% YoY.
• Net profit for the year grew by 10.4% YoY.
• Net profit margins during the year grew from 4.3% in FY20 to 4.6% in FY21.

TRANSPORT CORP Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	27,178	28,024	3.1%
Other income	Rs m	201	255	26.6%
Total Revenues	Rs m	27,380	28,279	3.3%
Gross profit	Rs m	2,307	2,482	7.6%
Depreciation	Rs m	825	928	12.5%
Interest	Rs m	343	267	-22.2%
Profit before tax	Rs m	1,340	1,541	15.1%
Tax	Rs m	159	238	49.7%
Profit after tax	Rs m	1,180	1,303	10.4%
Gross profit margin	%	8.5	8.9
Effective tax rate	%	11.9	15.5
Net profit margin	%	4.3	4.6

TRANSPORT CORP Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -12.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY20, a fall of 26.3%.
• Current assets rose 3% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 3%.

TRANSPORT CORP Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,148	11,631	14.6
Current Liabilities	Rs m	4,705	4,104	-12.8
Long-term Debt	Rs m	1,480	1,091	-26.3
Total Liabilities	Rs m	16,833	17,388	3.3
Current assets	Rs m	7,075	7,266	2.7
Fixed Assets	Rs m	9,759	10,122	3.7
Total Assets	Rs m	16,833	17,388	3.3

TRANSPORT CORP Cash Flow Statement Analysis

• TRANSPORT CORP's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 25.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 209 million from the Rs 31 million net cash flows seen during FY20.

TRANSPORT CORP 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	2,428	3,047	25.5%
Cash Flow from Investing Activities	Rs m	-1,353	-1,062	-
Cash Flow from Financing Activities	Rs m	-1,044	-1,776	-
Net Cash Flow	Rs m	31	209	575.0%

Current Valuations for TRANSPORT CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.9, an improvement from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 256.2, stands at 15.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	353.7	363.5
TTM Earnings per share	Rs	15.4	16.9
Diluted earnings per share	Rs	15.3	16.8
Price to Cash Flow	x	7.3	7.4
TTM P/E ratio	x	12.3	15.2
Price / Book Value ratio	x	1.7	1.4
Market Cap	Rs m	17,205	16,438
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for TRANSPORT CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.5x 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 6.8x during FY21, from 4.9x 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 declined and down at 11.2% during FY21, from 11.6% 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 declined and down at 14.2% during FY21, from 14.5% 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 declined and down at 9.0% during FY21, from 9.1% 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	1.5	1.8
Debtors’ Days	Days	654	666
Interest coverage	x	4.9	6.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.1	9.0
Return on equity	%	11.6	11.2
Return on capital employed	%	14.5	14.2

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

TRANSPORT CORP Share Price Performance

Over the last one year, TRANSPORT CORP share price has moved up from Rs 188.2 to Rs 256.2, registering a gain of Rs 68.0 or around 36.1%.

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

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

Read: Latest Annual Report Analysis of TRANSPORT CORP