TATA METALIK 2020-21 Annual Report Analysis

Wed, 31 Mar

TATA METALIK 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.

TATA METALIK Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.3% in FY21 as against 13.9% in FY20.
• Depreciation charges increased by 3.2% and finance costs decreased by 28.5% YoY, respectively.
• Other income declined by 51.8% YoY.
• Net profit for the year grew by 32.5% YoY.
• Net profit margins during the year grew from 8.1% in FY20 to 11.5% in FY21.

TATA METALIK Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,506	19,167	-6.5%
Other income	Rs m	169	82	-51.8%
Total Revenues	Rs m	20,675	19,248	-6.9%
Gross profit	Rs m	2,842	3,896	37.1%
Depreciation	Rs m	651	671	3.2%
Interest	Rs m	347	248	-28.5%
Profit before tax	Rs m	2,014	3,058	51.9%
Tax	Rs m	354	860	142.8%
Profit after tax	Rs m	1,660	2,198	32.5%
Gross profit margin	%	13.9	20.3
Effective tax rate	%	17.6	28.1
Net profit margin	%	8.1	11.5

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TATA METALIK Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 7 billion in FY20, thereby witnessing an decrease of -42.6%.
• Current assets rose 5% and stood at Rs 9 billion, while fixed assets rose 17% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 11%.

TATA METALIK Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,633	13,001	50.6
Current Liabilities	Rs m	6,714	3,854	-42.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,748	18,618	11.2
Current assets	Rs m	8,494	8,958	5.5
Fixed Assets	Rs m	8,254	9,661	17.0
Total Assets	Rs m	16,748	18,618	11.2

TATA METALIK Cash Flow Statement Analysis

• TATA METALIK's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 300.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 90.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -700 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -675 million from the Rs 801 million net cash flows seen during FY20.

TATA METALIK 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	701	2,812	300.9%
Cash Flow from Investing Activities	Rs m	-1,462	-2,788	-
Cash Flow from Financing Activities	Rs m	1,562	-700	-
Net Cash Flow	Rs m	801	-675	-

Current Valuations for TATA METALIK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.6, 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 814.2, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	730.0	606.9
TTM Earnings per share	Rs	59.1	69.6
Diluted earnings per share	Rs	52.6	69.6
Price to Cash Flow	x	4.5	7.0
TTM P/E ratio	x	6.2	11.7
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	14,034	19,947
Dividends per share (Unadj.)	Rs	2.5	4.0

Ratio Analysis for TATA METALIK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x 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 13.3x during FY21, from 6.8x 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 16.9% during FY21, from 19.2% 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 25.4% during FY21, from 27.3% 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 improved and stood at 13.1% during FY21, from 12.0% 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	2.3
Debtors’ Days	Days	499	470
Interest coverage	x	6.8	13.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.0	13.1
Return on equity	%	19.2	16.9
Return on capital employed	%	27.3	25.4

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

TATA METALIK Share Price Performance

Over the last one year, TATA METALIK share price has moved up from Rs 329.6 to Rs 814.2, registering a gain of Rs 484.6 or around 147.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of TATA METALIK