TVS SRICHAKRA 2020-21 Annual Report Analysis

Wed, 31 Mar

TVS SRICHAKRA 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.

TVS SRICHAKRA Income Statement Analysis

• Operating income during the year fell 7.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY21 as against 10.3% in FY20.
• Depreciation charges increased by 3.6% and finance costs decreased by 15.1% YoY, respectively.
• Other income declined by 48.9% YoY.
• Net profit for the year declined by 10.3% YoY.
• Net profit margins during the year declined from 3.9% in FY20 to 3.8% in FY21.

TVS SRICHAKRA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,037	19,392	-7.8%
Other income	Rs m	102	52	-48.9%
Total Revenues	Rs m	21,139	19,444	-8.0%
Gross profit	Rs m	2,169	2,299	6.0%
Depreciation	Rs m	1,002	1,038	3.6%
Interest	Rs m	394	335	-15.1%
Profit before tax	Rs m	874	978	11.8%
Tax	Rs m	52	240	364.1%
Profit after tax	Rs m	823	738	-10.3%
Gross profit margin	%	10.3	11.9
Effective tax rate	%	5.9	24.5
Net profit margin	%	3.9	3.8

Special Anniversary Offer: Vanishing Tomorrow - Your Chance to Save 80%

TVS SRICHAKRA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -7.2%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY20, a fall of 18.7%.
• Current assets fell 0% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 0%.

TVS SRICHAKRA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,449	8,247	10.7
Current Liabilities	Rs m	6,146	5,705	-7.2
Long-term Debt	Rs m	1,292	1,051	-18.7
Total Liabilities	Rs m	16,162	16,223	0.4
Current assets	Rs m	7,299	7,268	-0.4
Fixed Assets	Rs m	8,863	8,956	1.0
Total Assets	Rs m	16,162	16,223	0.4

TVS SRICHAKRA Cash Flow Statement Analysis

• TVS SRICHAKRA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 2.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -919 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 7 million from the Rs -51 million net cash flows seen during FY20.

TVS SRICHAKRA 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	2,995	3,074	2.6%
Cash Flow from Investing Activities	Rs m	-1,359	-919	-
Cash Flow from Financing Activities	Rs m	-1,686	-2,148	-
Net Cash Flow	Rs m	-51	7	-

Current Valuations for TVS SRICHAKRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 96.4, an decline from the EPS of Rs 107.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,776.3, stands at 18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.8 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	2,746.4	2,531.6
TTM Earnings per share	Rs	107.4	96.4
Diluted earnings per share	Rs	107.4	96.4
Price to Cash Flow	x	3.7	6.8
TTM P/E ratio	x	8.3	18.4
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	11,600	12,075
Dividends per share (Unadj.)	Rs	20.1	30.0

Ratio Analysis for TVS SRICHAKRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.2x 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 3.9x during FY21, from 3.2x 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 9.0% during FY21, from 11.0% 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 14.1% during FY21, from 14.5% 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 6.6% during FY21, from 7.5% 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	1.2	1.3
Debtors’ Days	Days	4	5
Interest coverage	x	3.2	3.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.5	6.6
Return on equity	%	11.0	9.0
Return on capital employed	%	14.5	14.1

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

TVS SRICHAKRA Share Price Performance

Over the last one year, TVS SRICHAKRA share price has moved up from Rs 891.1 to Rs 1,776.3, registering a gain of Rs 885.2 or around 99.3%.

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

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

Read: Latest Annual Report Analysis of TVS SRICHAKRA