TEXMACO RAIL 2020-21 Annual Report Analysis

Wed, 31 Mar

TEXMACO RAIL 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.

TEXMACO RAIL Income Statement Analysis

• Operating income during the year fell 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 232.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.6% in FY21 as against 1.1% in FY20.
• Depreciation charges increased by 3.8% and finance costs increased by 6.6% YoY, respectively.
• Other income grew by 127.8% YoY.
• Net profit for the year declined by 105.2% YoY.
• Net profit margins during the year grew from 3.8% in FY20 to 0.2% in FY21.

TEXMACO RAIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,318	16,888	-7.8%
Other income	Rs m	512	1,166	127.8%
Total Revenues	Rs m	18,830	18,055	-4.1%
Gross profit	Rs m	-205	271	-232.2%
Depreciation	Rs m	361	375	3.8%
Interest	Rs m	966	1,030	6.6%
Profit before tax	Rs m	-1,020	33	-103.3%
Tax	Rs m	-329	-3	-99.2%
Profit after tax	Rs m	-691	36	-105.2%
Gross profit margin	%	-1.1	1.6
Effective tax rate	%	32.2	-8.2
Net profit margin	%	-3.8	0.2

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TEXMACO RAIL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 13 billion as compared to Rs 16 billion in FY20, thereby witnessing an decrease of -17.4%.
• Long-term debt down at Rs 358 million as compared to Rs 527 million during FY20, a fall of 32.2%.
• Current assets fell 10% and stood at Rs 20 billion, while fixed assets fell 1% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 28 billion during FY20, thereby witnessing a fall of 9%.

TEXMACO RAIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,155	11,296	11.2
Current Liabilities	Rs m	16,203	13,381	-17.4
Long-term Debt	Rs m	527	358	-32.2
Total Liabilities	Rs m	28,044	25,597	-8.7
Current assets	Rs m	22,678	20,310	-10.4
Fixed Assets	Rs m	5,366	5,287	-1.5
Total Assets	Rs m	28,044	25,597	-8.7

TEXMACO RAIL Cash Flow Statement Analysis

• TEXMACO RAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 403 million, an improvement of 285.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -230 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -131 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 58 million from the Rs 56 million net cash flows seen during FY20.

TEXMACO RAIL 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	105	403	285.4%
Cash Flow from Investing Activities	Rs m	-986	-230	-
Cash Flow from Financing Activities	Rs m	962	-131	-
Net Cash Flow	Rs m	56	58	3.5%

Current Valuations for TEXMACO RAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 26.8, stands at 238.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	81.5	67.5
TTM Earnings per share	Rs	-3.1	0.1
Diluted earnings per share	Rs	-2.1	0.1
Price to Cash Flow	x	-18.9	17.4
TTM P/E ratio	x	-9.1	238.7
Price / Book Value ratio	x	1.0	0.6
Market Cap	Rs m	10,394	7,129
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for TEXMACO RAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 1.0x during FY21, from -0.1x 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 0.3% during FY21, from -6.8% 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 9.1% during FY21, from -0.5% 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 improved and stood at 4.2% during FY21, from 1.0% 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	1.5
Debtors’ Days	Days	1,284	1,322
Interest coverage	x	-0.1	1.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	1.0	4.2
Return on equity	%	-6.8	0.3
Return on capital employed	%	-0.5	9.1

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

TEXMACO RAIL Share Price Performance

Over the last one year, TEXMACO RAIL share price has moved up from Rs 19.5 to Rs 26.8, registering a gain of Rs 7.3 or around 37.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Read: Latest Annual Report Analysis of TEXMACO RAIL