TRIVENI ENGG 2020-21 Annual Report Analysis

Wed, 31 Mar

TRIVENI ENGG 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.

TRIVENI ENGG Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY21 as against 12.2% in FY20.
• Depreciation charges increased by 5.6% and finance costs decreased by 34.9% YoY, respectively.
• Other income declined by 16.7% YoY.
• Net profit for the year declined by 6.8% YoY.
• Net profit margins during the year declined from 7.1% in FY20 to 6.3% in FY21.

TRIVENI ENGG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	44,366	46,450	4.7%
Other income	Rs m	370	308	-16.7%
Total Revenues	Rs m	44,737	46,758	4.5%
Gross profit	Rs m	5,424	5,584	3.0%
Depreciation	Rs m	749	791	5.6%
Interest	Rs m	793	516	-34.9%
Profit before tax	Rs m	4,252	4,586	7.8%
Tax	Rs m	1,105	1,652	49.5%
Profit after tax	Rs m	3,147	2,934	-6.8%
Gross profit margin	%	12.2	12.0
Effective tax rate	%	26.0	36.0
Net profit margin	%	7.1	6.3

TRIVENI ENGG Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 21 billion in FY20, thereby witnessing an decrease of -26.5%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 30.4%.
• Current assets fell 17% and stood at Rs 22 billion, while fixed assets rose 1% and stood at Rs 14 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 40 billion during FY20, thereby witnessing a fall of 11%.

TRIVENI ENGG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,387	15,557	16.2
Current Liabilities	Rs m	21,064	15,491	-26.5
Long-term Debt	Rs m	4,436	3,089	-30.4
Total Liabilities	Rs m	40,458	36,197	-10.5
Current assets	Rs m	26,503	22,060	-16.8
Fixed Assets	Rs m	13,946	14,127	1.3
Total Assets	Rs m	40,458	36,197	-10.5

TRIVENI ENGG Cash Flow Statement Analysis

• TRIVENI ENGG's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 55.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 0.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -208 million from the Rs 174 million net cash flows seen during FY20.

TRIVENI ENGG 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	5,104	7,908	55.0%
Cash Flow from Investing Activities	Rs m	-1,072	-1,079	-
Cash Flow from Financing Activities	Rs m	-3,857	-7,037	-
Net Cash Flow	Rs m	174	-208	-

Current Valuations for TRIVENI ENGG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.1, an decline from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.6, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	178.9	192.1
TTM Earnings per share	Rs	12.7	12.1
Diluted earnings per share	Rs	13.0	12.1
Price to Cash Flow	x	2.3	4.3
TTM P/E ratio	x	2.8	7.0
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	14,548	16,016
Dividends per share (Unadj.)	Rs	1.1	1.8

Ratio Analysis for TRIVENI ENGG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.3x 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 9.9x during FY21, from 6.4x 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 18.9% during FY21, from 23.5% 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 27.4% during FY21, from 28.3% 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 declined and down at 9.5% during FY21, from 9.7% 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	1.3	1.4
Debtors’ Days	Days	220	164
Interest coverage	x	6.4	9.9
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.7	9.5
Return on equity	%	23.5	18.9
Return on capital employed	%	28.3	27.4

To see how TRIVENI ENGG has performed over the last 5 years, please visit here.

TRIVENI ENGG Share Price Performance

Over the last one year, TRIVENI ENGG share price has moved up from Rs 36.6 to Rs 84.6, registering a gain of Rs 48.0 or around 131.3%.

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

(To know more, check out historical annual results for TRIVENI ENGG and quarterly results for TRIVENI ENGG)

Read: Latest Annual Report Analysis of TRIVENI ENGG