TUBE INVESTMENTS OF INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

TUBE INVESTMENTS OF INDIA 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.

TUBE INVESTMENTS OF INDIA Income Statement Analysis

• Operating income during the year rose 28.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY21 as against 11.8% in FY20.
• Depreciation charges increased by 35.6% and finance costs increased by 39.5% YoY, respectively.
• Other income grew by 78.8% YoY.
• Net profit for the year declined by 2.7% YoY.
• Net profit margins during the year declined from 6.6% in FY20 to 5.0% in FY21.

TUBE INVESTMENTS OF INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	47,504	60,833	28.1%
Other income	Rs m	623	1,114	78.8%
Total Revenues	Rs m	48,127	61,947	28.7%
Gross profit	Rs m	5,598	5,990	7.0%
Depreciation	Rs m	1,853	2,513	35.6%
Interest	Rs m	337	470	39.5%
Profit before tax	Rs m	4,032	4,122	2.2%
Tax	Rs m	899	1,075	19.6%
Profit after tax	Rs m	3,133	3,047	-2.7%
Gross profit margin	%	11.8	9.8
Effective tax rate	%	22.3	26.1
Net profit margin	%	6.6	5.0

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

TUBE INVESTMENTS OF INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 55 billion as compared to Rs 12 billion in FY20, thereby witnessing an increase of 355.5%.
• Long-term debt stood at Rs 9 billion as compared to Rs 158 million during FY20, a growth of 5726.9%.
• Current assets rose 231% and stood at Rs 45 billion, while fixed assets rose 120% and stood at Rs 38 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 83 billion as against Rs 31 billion during FY20, thereby witnessing a growth of 169%.

TUBE INVESTMENTS OF INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,246	21,630	25.4
Current Liabilities	Rs m	12,132	55,256	355.5
Long-term Debt	Rs m	158	9,201	5,726.9
Total Liabilities	Rs m	30,803	82,878	169.1
Current assets	Rs m	13,617	45,083	231.1
Fixed Assets	Rs m	17,186	37,795	119.9
Total Assets	Rs m	30,803	82,878	169.1

TUBE INVESTMENTS OF INDIA Cash Flow Statement Analysis

• TUBE INVESTMENTS OF INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 38.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 201% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 5 billion from the Rs 661 million net cash flows seen during FY20.

TUBE INVESTMENTS OF INDIA 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	5,961	2,684	-55.0%
Cash Flow from Investing Activities	Rs m	-2,459	-3,402	-
Cash Flow from Financing Activities	Rs m	-2,841	2,857	-
Net Cash Flow	Rs m	661	4,912	643.7%

Current Valuations for TUBE INVESTMENTS OF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.8, an decline from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,191.6, stands at 80.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 26.1 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	252.8	315.5
TTM Earnings per share	Rs	16.7	15.8
Diluted earnings per share	Rs	16.2	15.8
Price to Cash Flow	x	10.6	26.1
TTM P/E ratio	x	16.9	80.5
Price / Book Value ratio	x	4.6	6.7
Market Cap	Rs m	79,781	145,095
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for TUBE INVESTMENTS OF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY21, from 1.1x 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 deteriorated and stood at 9.8x during FY21, from 13.0x 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 14.1% during FY21, from 18.2% 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 14.9% during FY21, from 25.1% 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 declined and down at 4.2% during FY21, from 11.3% 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	1.1	0.8
Debtors’ Days	Days	4	8
Interest coverage	x	13.0	9.8
Debt to equity ratio	x	0.0	0.4
Return on assets	%	11.3	4.2
Return on equity	%	18.2	14.1
Return on capital employed	%	25.1	14.9

To see how TUBE INVESTMENTS OF INDIA has performed over the last 5 years, please visit here.

TUBE INVESTMENTS OF INDIA Share Price Performance

Over the last one year, TUBE INVESTMENTS OF INDIA share price has moved up from Rs 274.2 to Rs 1,191.6, registering a gain of Rs 917.4 or around 334.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for TUBE INVESTMENTS OF INDIA and quarterly results for TUBE INVESTMENTS OF INDIA)

Read: Latest Annual Report Analysis of TUBE INVESTMENTS OF INDIA