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TVS MOTORS 2021-22 Annual Report Analysis
Wed, 8 Jun

TVS MOTORS 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.

TVS MOTORS Income Statement Analysis

  • Operating income during the year rose 25.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.1% in FY22 as against 11.5% in FY21.
  • Depreciation charges increased by 31.5% and finance costs increased by 6.7% YoY, respectively.
  • Other income declined by 30.4% YoY.
  • Net profit for the year grew by 18.4% YoY.
  • Net profit margins during the year declined from 3.2% in FY21 to 3.0% in FY22.

TVS MOTORS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 194,208 243,553 25.4%
Other income Rs m 472 329 -30.4%
Total Revenues Rs m 194,680 243,882 25.3%
Gross profit Rs m 22,285 27,145 21.8%
Depreciation Rs m 5,648 7,429 31.5%
Interest Rs m 8,815 9,402 6.7%
Profit before tax Rs m 8,294 10,643 28.3%
Tax Rs m 2,141 3,359 56.9%
Profit after tax Rs m 6,153 7,284 18.4%
Gross profit margin % 11.5 11.1
Effective tax rate % 25.8 31.6
Net profit margin % 3.2 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TVS MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 139 billion as compared to Rs 109 billion in FY21, thereby witnessing an increase of 27.0%.
  • Long-term debt stood at Rs 73 billion as compared to Rs 63 billion during FY21, a growth of 16.3%.
  • Current assets rose 22% and stood at Rs 128 billion, while fixed assets rose 24% and stood at Rs 140 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 269 billion as against Rs 219 billion during FY21, thereby witnessing a growth of 23%.

TVS MOTORS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 38,266 43,995 15.0
 
Current Liabilities Rs m 109,087 138,517 27.0
Long-term Debt Rs m 62,803 73,058 16.3
Total Liabilities Rs m 218,651 268,542 22.8
 
Current assets Rs m 105,368 128,481 21.9
Fixed Assets Rs m 113,282 140,061 23.6
Total Assets Rs m 218,651 268,542 22.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TVS MOTORS Cash Flow Statement Analysis

  • TVS MOTORS's cash flow from operating activities (CFO) during FY22 stood at Rs -16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -15 billion, an improvement of 68.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 29 billion, an improvement of 1,007% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs 5 billion net cash flows seen during FY21.

TVS MOTORS 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 11,513 -15,602 -
Cash Flow from Investing Activities Rs m -8,824 -14,859 -
Cash Flow from Financing Activities Rs m 2,635 29,180 1,007.4%
Net Cash Flow Rs m 5,324 -1,281 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TVS MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.3, an improvement from the EPS of Rs 13.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 745.1, stands at 48.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.8 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 408.8 512.6
TTM Earnings per share Rs 13.0 15.3
Diluted earnings per share Rs 13.0 15.3
Price to Cash Flow x 23.6 20.8
TTM P/E ratio x 45.2 48.6
Price / Book Value ratio x 5.6 7.0
Market Cap Rs m 213,765 306,063
Dividends per share (Unadj.) Rs 3.5 3.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TVS MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY22, from 1.0x 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 improved and stood at 2.1x during FY22, from 1.9x 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 16.6% during FY22, from 16.1% 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 17.1% during FY22, from 16.9% 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 declined and down at 6.2% during FY22, from 6.8% 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 1.0 0.9
Debtors’ Days Days 2 2
Interest coverage x 1.9 2.1
Debt to equity ratio x 1.6 1.7
Return on assets % 6.8 6.2
Return on equity % 16.1 16.6
Return on capital employed % 16.9 17.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TVS MOTORS has performed over the last 5 years, please visit here.

TVS MOTORS Share Price Performance

Over the last one year, TVS MOTORS share price has moved up from Rs 647.2 to Rs 745.1, registering a gain of Rs 97.9 or around 15.1%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 26,055.6 (up 0.5%). Over the last one year it has moved up from 24,339.7 to 26,055.6, a gain of 1,716 points (up 7.0%).

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

(To know more, check out historical annual results for TVS MOTORS and quarterly results for TVS MOTORS)

Annual Report FAQs

What is the current share price of TVS MOTORS?

TVS MOTORS currently trades at Rs 0.0 per share. You can check out the latest share price performance of TVS MOTORS here...

What was the revenue of TVS MOTORS in FY22? How does it compare to earlier years?

The revenues of TVS MOTORS stood at Rs 243,882 m in FY22, which was up 25.3% compared to Rs 194,680 m reported in FY21.

TVS MOTORS' revenue has grown from Rs 160,784 m in FY18 to Rs 243,882 m in FY22.

Over the past 5 years, the revenue of TVS MOTORS has grown at a CAGR of 11.0%.

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

The net profit of TVS MOTORS stood at Rs 7,284 m in FY22, which was up 18.4% compared to Rs 6,153 m reported in FY21.

This compares to a net profit of Rs 6,554 m in FY20 and a net profit of Rs 7,237 m in FY19.

Over the past 5 years, TVS MOTORS net profit has grown at a CAGR of 2.3%.

What does the cash flow statement of TVS MOTORS 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 TVS MOTORS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs -15,602 m as compared to Rs 11,513 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -14,859 m as compared to Rs -8,824 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 29,180 m as compared to Rs 2,635 m in FY21.

Here's the cash flow statement of TVS MOTORS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations3,544-9,1793,73411,513-15,602
From Investments-10,952-11,036-10,902-8,824-14,859
From Financial Activity8,96522,09816,1922,63529,180
Net Cashflow1,5581,8829,0255,324-1,281

What does the Key Ratio analysis of TVS MOTORS 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 TVS MOTORS reveals:

  • Operating profit margins witnessed a fall and stood at 11.1% in FY22 as against 11.5% in FY21.
  • Net profit margins declined from 3.2% in FY21 to 3.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 1.7 as compared to 1.6 in FY21.

Here's the ratio/financial analysis of TVS MOTORS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)9.710.711.811.511.1
Net Profit Margin (%)4.23.63.53.23.0
Debt to Equity Ratio (x)0.91.51.61.61.7

 

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