TIME TECHNO 2021-22 Annual Report Analysis

Mon, 19 Sep

TIME TECHNO 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.

TIME TECHNO Income Statement Analysis

• Operating income during the year rose 21.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY22 as against 12.9% in FY21.
• Depreciation charges increased by 4.2% and finance costs decreased by 5.9% YoY, respectively.
• Other income declined by 22.6% YoY.
• Net profit for the year grew by 81.6% YoY.
• Net profit margins during the year grew from 3.5% in FY21 to 5.3% in FY22.

TIME TECHNO Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	30,049	36,498	21.5%
Other income	Rs m	38	30	-22.6%
Total Revenues	Rs m	30,087	36,528	21.4%
Gross profit	Rs m	3,871	5,058	30.7%
Depreciation	Rs m	1,510	1,574	4.2%
Interest	Rs m	977	920	-5.9%
Profit before tax	Rs m	1,422	2,594	82.4%
Tax	Rs m	364	672	84.6%
Profit after tax	Rs m	1,058	1,922	81.6%
Gross profit margin	%	12.9	13.9
Effective tax rate	%	25.6	25.9
Net profit margin	%	3.5	5.3

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TIME TECHNO Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 10 billion in FY21, thereby witnessing an increase of 10.4%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY21, a fall of 3.4%.
• Current assets rose 13% and stood at Rs 21 billion, while fixed assets rose 5% and stood at Rs 14 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 36 billion as against Rs 33 billion during FY21, thereby witnessing a growth of 9%.

TIME TECHNO Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	18,977	20,680	9.0
Current Liabilities	Rs m	9,558	10,549	10.4
Long-term Debt	Rs m	2,616	2,527	-3.4
Total Liabilities	Rs m	33,045	36,044	9.1
Current assets	Rs m	18,942	21,312	12.5
Fixed Assets	Rs m	13,502	14,195	5.1
Total Assets	Rs m	33,045	36,044	9.1

TIME TECHNO Cash Flow Statement Analysis

• TIME TECHNO's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 13.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 70.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 78 million from the Rs 11 million net cash flows seen during FY21.

TIME TECHNO 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	2,570	2,908	13.1%
Cash Flow from Investing Activities	Rs m	-1,052	-1,792	-
Cash Flow from Financing Activities	Rs m	-1,507	-1,038	-
Net Cash Flow	Rs m	11	78	612.5%

Current Valuations for TIME TECHNO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.8, stands at 12.2 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.0 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	132.9	161.4
TTM Earnings per share	Rs	4.7	8.5
Diluted earnings per share	Rs	4.7	8.5
Price to Cash Flow	x	5.3	5.0
TTM P/E ratio	x	12.9	12.2
Price / Book Value ratio	x	0.5	0.8
Market Cap	Rs m	9,900	17,526
Dividends per share (Unadj.)	Rs	0.7	1.0

Ratio Analysis for TIME TECHNO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY22, from 2.0x 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 3.8x during FY22, from 2.5x 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 9.3% during FY22, from 5.6% 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 11.1% 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 7.9% during FY22, from 6.2% 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	2.0	2.0
Debtors’ Days	Days	970	867
Interest coverage	x	2.5	3.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.2	7.9
Return on equity	%	5.6	9.3
Return on capital employed	%	11.1	15.1

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

TIME TECHNO Share Price Performance

Over the last one year, TIME TECHNO share price has moved up from Rs 74.1 to Rs 112.8, registering a gain of Rs 38.7 or around 52.2%.

Overall, the S&P BSE SENSEX is up 0.6% over the year.

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

Read: Latest Annual Report Analysis of TIME TECHNO