TATA METALIK 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

TATA METALIK 2020-21 Annual Report Analysis
Wed, 20 Oct

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 8.0% in FY20 to 11.4% 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 % 8.0 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EXPOSED: The Shocking Truth Behind Today's Hottest Investment Opportunity

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



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



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 1,044.9, stands at 11.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.5 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 12.7 11.5
TTM P/E ratio x 9.8 11.0
Price / Book Value ratio x 1.6 1.5
Market Cap Rs m 29,346 32,995
Dividends per share (Unadj.) Rs 2.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 568.9 to Rs 1,044.9, registering a gain of Rs 476.1 or around 83.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,402.0 (down 2.2%). Over the last one year it has moved up from 8,346.7 to 21,402.0, a gain of 13,055 points (up 156.4%).

Overall, the S&P BSE SENSEX is up 52.2% over the year.

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

Equitymaster requests your view! Post a comment on "TATA METALIK 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

TATA METALIK Announces Quarterly Results (2QFY22); Net Profit Down 33.3% (Quarterly Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

For the quarter ended September 2021, TATA METALIK has posted a net profit of Rs 548 m (down 33.3% YoY). Sales on the other hand came in at Rs 6 bn (up 24.1% YoY). Read on for a complete analysis of TATA METALIK's quarterly results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better?(Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake(Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks(Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

5 Indian Companies Embracing Blockchain Technology(Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

India's Top 5 Monopoly Stocks to Watch Out for(Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK TATA METALIK

  • Track your investment in TATA METALIK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

TATA METALIK - STEEL EXCHANGE COMPARISON

COMPARE TATA METALIK WITH

MARKET STATS