TEXMACO INFRA 2020-21 Annual Report Analysis

Wed, 31 Mar

TEXMACO INFRA 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.

TEXMACO INFRA Income Statement Analysis

• Operating income during the year fell 21.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 136.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.9% in FY21 as against 10.4% in FY20.
• Depreciation charges increased by 3.4% and finance costs increased by 12.9% YoY, respectively.
• Other income grew by 49.4% YoY.
• Net profit for the year grew by 58.2% YoY.
• Net profit margins during the year grew from 25.3% in FY20 to 51.0% in FY21.

TEXMACO INFRA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	188	147	-21.5%
Other income	Rs m	110	165	49.4%
Total Revenues	Rs m	298	313	4.8%
Gross profit	Rs m	20	-7	-136.9%
Depreciation	Rs m	27	28	3.4%
Interest	Rs m	27	31	12.9%
Profit before tax	Rs m	75	99	31.0%
Tax	Rs m	28	24	-15.3%
Profit after tax	Rs m	48	75	58.2%
Gross profit margin	%	10.4	-4.9
Effective tax rate	%	37.0	23.9
Net profit margin	%	25.3	51.0

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TEXMACO INFRA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 115 million as compared to Rs 155 million in FY20, thereby witnessing an decrease of -25.8%.
• Long-term debt down at Rs 192 million as compared to Rs 200 million during FY20, a fall of 4.4%.
• Current assets fell 11% and stood at Rs 842 million, while fixed assets rose 15% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 11%.

TEXMACO INFRA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,605	6,273	11.9
Current Liabilities	Rs m	155	115	-25.8
Long-term Debt	Rs m	200	192	-4.4
Total Liabilities	Rs m	5,946	6,573	10.5
Current assets	Rs m	946	842	-10.9
Fixed Assets	Rs m	5,000	5,731	14.6
Total Assets	Rs m	5,946	6,573	10.5

TEXMACO INFRA Cash Flow Statement Analysis

• TEXMACO INFRA's cash flow from operating activities (CFO) during FY21 stood at Rs -77 million, an improvement of 1,213.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 135 million, an improvement of 161.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -61 million, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -3 million from the Rs -25 million net cash flows seen during FY20.

TEXMACO INFRA 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	-6	-77	-
Cash Flow from Investing Activities	Rs m	52	135	161.9%
Cash Flow from Financing Activities	Rs m	-70	-61	-
Net Cash Flow	Rs m	-25	-3	-

Current Valuations for TEXMACO INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.5, stands at 119.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 60.9 times.
• The company's price to cash flow (P/CF) ratio stood at 66.9 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	1.5	1.2
TTM Earnings per share	Rs	0.4	0.6
Diluted earnings per share	Rs	0.4	0.6
Price to Cash Flow	x	52.6	66.9
TTM P/E ratio	x	70.3	119.5
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	5,186	6,922
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for TEXMACO INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.3x during FY21, from 6.1x 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 improved and stood at 4.2x during FY21, from 3.8x 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 improved and stood at 1.2% during FY21, from 0.8% 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 improved and stood at 2.0% during FY21, from 1.8% 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 1.6% during FY21, from 1.3% 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	6.1	7.3
Debtors’ Days	Days	669	883
Interest coverage	x	3.8	4.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.3	1.6
Return on equity	%	0.8	1.2
Return on capital employed	%	1.8	2.0

To see how TEXMACO INFRA has performed over the last 5 years, please visit here.

TEXMACO INFRA Share Price Performance

Over the last one year, TEXMACO INFRA share price has moved up from Rs 30.9 to Rs 70.5, registering a gain of Rs 39.6 or around 128.2%.

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 TEXMACO INFRA and quarterly results for TEXMACO INFRA)

Read: Latest Annual Report Analysis of TEXMACO INFRA