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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of TATA ELXSI?

TATA ELXSI currently trades at Rs 10,130.6 per share. You can check out the latest share price performance of TATA ELXSI here...

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

The revenues of TATA ELXSI stood at Rs 25,154 m in FY22, which was up 34.8% compared to Rs 18,659 m reported in FY21.

TATA ELXSI's revenue has grown from Rs 14,311 m in FY18 to Rs 25,154 m in FY22.

Over the past 5 years, the revenue of TATA ELXSI has grown at a CAGR of 15.1%.

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

The net profit of TATA ELXSI stood at Rs 5,497 m in FY22, which was up 49.3% compared to Rs 3,681 m reported in FY21.

This compares to a net profit of Rs 2,561 m in FY20 and a net profit of Rs 2,900 m in FY19.

Over the past 5 years, TATA ELXSI net profit has grown at a CAGR of 23.0%.

What does the cash flow statement of TATA ELXSI 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 TATA ELXSI reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 4,830 m as compared to Rs 4,374 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -1,083 m as compared to Rs -4,377 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -3,261 m as compared to Rs -1,265 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations1,9712,1492,5584,3744,830
From Investments-2,472-1,587390-4,377-1,083
From Financial Activity-600-826-1,237-1,265-3,261
Net Cashflow-1,077-2951,747-1,280507

What does the Key Ratio analysis of TATA ELXSI 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 TATA ELXSI reveals:

  • Operating profit margins witnessed a fall and down at 31.0% in FY22 as against 28.7% in FY21.
  • Net profit margins grew from 20.2% in FY21 to 22.2% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)24.926.121.028.731.0
Net Profit Margin (%)17.318.215.920.222.2
Debt to Equity Ratio (x)0.00.00.00.00.0

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