TATA ELXSI 2021-22 Annual Report Analysis

Wed, 8 Jun

TATA ELXSI 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.

TATA ELXSI Income Statement Analysis

• Operating income during the year rose 35.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY22 as against 28.7% in FY21.
• Depreciation charges increased by 24.7% and finance costs increased by 48.5% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year grew by 49.3% YoY.
• Net profit margins during the year grew from 20.2% in FY21 to 22.2% in FY22.

TATA ELXSI Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	18,262	24,708	35.3%
Other income	Rs m	398	446	12.0%
Total Revenues	Rs m	18,659	25,154	34.8%
Gross profit	Rs m	5,235	7,667	46.5%
Depreciation	Rs m	444	553	24.7%
Interest	Rs m	71	105	48.5%
Profit before tax	Rs m	5,119	7,455	45.6%
Tax	Rs m	1,437	1,958	36.2%
Profit after tax	Rs m	3,681	5,497	49.3%
Gross profit margin	%	28.7	31.0
Effective tax rate	%	28.1	26.3
Net profit margin	%	20.2	22.2

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TATA ELXSI Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 55.1%.
• Current assets rose 22% and stood at Rs 17 billion, while fixed assets rose 47% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 22 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 27%.

TATA ELXSI Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,522	16,009	18.4
Current Liabilities	Rs m	2,645	4,102	55.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,067	21,602	26.6
Current assets	Rs m	13,914	16,957	21.9
Fixed Assets	Rs m	3,154	4,645	47.3
Total Assets	Rs m	17,067	21,602	26.6

TATA ELXSI Cash Flow Statement Analysis

• TATA ELXSI's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 10.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 507 million from the Rs -1 billion net cash flows seen during FY21.

TATA ELXSI 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	4,374	4,830	10.4%
Cash Flow from Investing Activities	Rs m	-4,377	-1,083	-
Cash Flow from Financing Activities	Rs m	-1,265	-3,261	-
Net Cash Flow	Rs m	-1,280	507	-

Current Valuations for TATA ELXSI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 88.3, an improvement from the EPS of Rs 59.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,607.1, stands at 97.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 33.5 times, while the price to sales ratio stands at 21.7 times.
• The company's price to cash flow (P/CF) ratio stood at 62.4 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	293.2	396.7
TTM Earnings per share	Rs	59.1	88.3
Diluted earnings per share	Rs	59.1	88.3
Price to Cash Flow	x	40.7	62.4
TTM P/E ratio	x	45.6	97.5
Price / Book Value ratio	x	8.4	23.6
Market Cap	Rs m	113,343	377,395
Dividends per share (Unadj.)	Rs	48.0	42.5

Ratio Analysis for TATA ELXSI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY22, from 5.3x 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 deteriorated and stood at 72.2x during FY22, from 73.6x 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 34.3% during FY22, from 27.2% 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 47.2% during FY22, from 38.4% 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 25.9% during FY22, from 22.0% 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	5.3	4.1
Debtors’ Days	Days	804	818
Interest coverage	x	73.6	72.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.0	25.9
Return on equity	%	27.2	34.3
Return on capital employed	%	38.4	47.2

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

TATA ELXSI Share Price Performance

Over the last one year, TATA ELXSI share price has moved up from Rs 3,743.3 to Rs 8,607.1, registering a gain of Rs 4,863.9 or around 129.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,037.9 (up 0.5%). Over the last one year it has moved up from 28,096.6 to 30,037.9, a gain of 1,941 points (up 6.9%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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

Read: Latest Annual Report Analysis of TATA ELXSI