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TRENT 2021-22 Annual Report Analysis
Tue, 31 May

TRENT 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.

TRENT Income Statement Analysis

  • Operating income during the year rose 74.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 209.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY22 as against 7.8% in FY21.
  • Depreciation charges increased by 20.8% and finance costs increased by 24.6% YoY, respectively.
  • Other income declined by 13.1% YoY.
  • Net profit for the year declined by 126.8% YoY.
  • Net profit margins during the year grew from 4.7% in FY21 to 0.7% in FY22.

TRENT Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 23,544 41,036 74.3%
Other income Rs m 2,016 1,752 -13.1%
Total Revenues Rs m 25,560 42,789 67.4%
Gross profit Rs m 1,830 5,665 209.5%
Depreciation Rs m 2,573 3,108 20.8%
Interest Rs m 2,608 3,248 24.6%
Profit before tax Rs m -1,335 1,061 -179.5%
Tax Rs m -237 766 -423.4%
Profit after tax Rs m -1,098 295 -126.8%
Gross profit margin % 7.8 13.8
Effective tax rate % 17.8 72.2
Net profit margin % -4.7 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

TRENT Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 7 billion as compared to Rs 8 billion in FY21, thereby witnessing an decrease of -13.0%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 0 million during FY21, a fall of 0.0%.
  • Current assets rose 27% and stood at Rs 18 billion, while fixed assets rose 38% and stood at Rs 58 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 76 billion as against Rs 56 billion during FY21, thereby witnessing a growth of 35%.

TRENT Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 23,130 23,640 2.2
 
Current Liabilities Rs m 7,514 6,535 -13.0
Long-term Debt Rs m 0 4,974 0.0
Total Liabilities Rs m 56,092 75,997 35.5
 
Current assets Rs m 14,034 17,835 27.1
Fixed Assets Rs m 42,059 58,162 38.3
Total Assets Rs m 56,092 75,997 35.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TRENT Cash Flow Statement Analysis

  • TRENT's cash flow from operating activities (CFO) during FY22 stood at Rs 585 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 560 million, an improvement of 258.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 62% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 65 million from the Rs 196 million net cash flows seen during FY21.

TRENT 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 2,850 585 -79.5%
Cash Flow from Investing Activities Rs m 157 560 258.0%
Cash Flow from Financing Activities Rs m -2,831 -1,080 -
Net Cash Flow Rs m 196 65 -66.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TRENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, 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 1,120.3, stands at 1,351.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.8 times, while the price to sales ratio stands at 9.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 104.7 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 66.2 115.4
TTM Earnings per share Rs -3.1 0.8
Diluted earnings per share Rs -3.1 0.8
Price to Cash Flow x 181.1 104.7
TTM P/E ratio x -243.4 1,351.4
Price / Book Value ratio x 10.3 15.1
Market Cap Rs m 239,376 356,243
Dividends per share (Unadj.) Rs 0.6 1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TRENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.7x during FY22, from 1.9x 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 improved and stood at 1.3x during FY22, from 0.5x 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 1.2% during FY22, from -4.7% 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 15.1% during FY22, from 5.5% 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 improved and stood at 4.7% during FY22, from 2.7% 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 1.9 2.7
Debtors’ Days Days 0 0
Interest coverage x 0.5 1.3
Debt to equity ratio x 0.0 0.2
Return on assets % 2.7 4.7
Return on equity % -4.7 1.2
Return on capital employed % 5.5 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TRENT Share Price Performance

Over the last one year, TRENT share price has moved up from Rs 852.7 to Rs 1,120.3, registering a gain of Rs 267.6 or around 31.4%.

Overall, the S&P BSE SENSEX is up 9.1% over the year.

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

Annual Report FAQs

What is the current share price of TRENT?

TRENT currently trades at Rs 3,948.5 per share. You can check out the latest share price performance of TRENT here...

What was the revenue of TRENT in FY22? How does it compare to earlier years?

The revenues of TRENT stood at Rs 42,789 m in FY22, which was up 67.4% compared to Rs 25,560 m reported in FY21.

TRENT's revenue has grown from Rs 20,125 m in FY18 to Rs 42,789 m in FY22.

Over the past 5 years, the revenue of TRENT has grown at a CAGR of 20.8%.

What was the net profit of TRENT in FY22? How does it compare to earlier years?

The net profit of TRENT stood at Rs 295 m in FY22, which was down -126.8% compared to Rs -1,098 m reported in FY21.

This compares to a net profit of Rs 1,364 m in FY20 and a net profit of Rs 1,065 m in FY19.

Over the past 5 years, TRENT net profit has grown at a CAGR of -28.0%.

What does the cash flow statement of TRENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TRENT reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 585 m as compared to Rs 2,850 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 560 m as compared to Rs 157 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -1,080 m as compared to Rs -2,831 m in FY21.

Here's the cash flow statement of TRENT for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations7692103,6122,850585
From Investments-40-370-8,156157560
From Financial Activity-7433754,519-2,831-1,080
Net Cashflow-152144519665

What does the Key Ratio analysis of TRENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TRENT reveals:

  • Operating profit margins witnessed a fall and down at 13.8% in FY22 as against 7.8% in FY21.
  • Net profit margins grew from 4.7% in FY21 to 0.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of TRENT for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.910.117.57.813.8
Net Profit Margin (%)5.64.54.3-4.70.7
Debt to Equity Ratio (x)0.10.20.10.00.2

Read: Latest Annual Report Analysis of TRENT

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