VINDHYA TELELINKS 2020-21 Annual Report Analysis

Wed, 31 Mar

VINDHYA TELELINKS 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.

VINDHYA TELELINKS Income Statement Analysis

• Operating income during the year fell 20.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY21 as against 13.8% in FY20.
• Depreciation charges increased by 12.7% and finance costs decreased by 19.6% YoY, respectively.
• Other income grew by 155.4% YoY.
• Net profit for the year grew by 124.2% YoY.
• Net profit margins during the year grew from 2.0% in FY20 to 5.5% in FY21.

VINDHYA TELELINKS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,832	15,021	-20.2%
Other income	Rs m	217	553	155.4%
Total Revenues	Rs m	19,049	15,574	-18.2%
Gross profit	Rs m	2,598	2,092	-19.5%
Depreciation	Rs m	207	234	12.7%
Interest	Rs m	970	780	-19.6%
Profit before tax	Rs m	1,637	1,631	-0.4%
Tax	Rs m	1,268	804	-36.6%
Profit after tax	Rs m	369	827	124.2%
Gross profit margin	%	13.8	13.9
Effective tax rate	%	77.5	49.3
Net profit margin	%	2.0	5.5

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VINDHYA TELELINKS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 13 billion as compared to Rs 14 billion in FY20, thereby witnessing an decrease of -11.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY20, a fall of 35.4%.
• Current assets fell 7% and stood at Rs 21 billion, while fixed assets rose 18% and stood at Rs 29 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 50 billion as against Rs 47 billion during FY20, thereby witnessing a growth of 6%.

VINDHYA TELELINKS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	24,115	28,809	19.5
Current Liabilities	Rs m	14,347	12,672	-11.7
Long-term Debt	Rs m	3,643	2,352	-35.4
Total Liabilities	Rs m	47,258	50,214	6.3
Current assets	Rs m	22,396	20,821	-7.0
Fixed Assets	Rs m	24,861	29,393	18.2
Total Assets	Rs m	47,258	50,214	6.3

VINDHYA TELELINKS Cash Flow Statement Analysis

• VINDHYA TELELINKS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 711.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 25 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 3 million from the Rs 19 million net cash flows seen during FY20.

VINDHYA TELELINKS 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	305	2,472	711.0%
Cash Flow from Investing Activities	Rs m	197	25	-87.1%
Cash Flow from Financing Activities	Rs m	-483	-2,495	-
Net Cash Flow	Rs m	19	3	-84.6%

Current Valuations for VINDHYA TELELINKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.8, an improvement from the EPS of Rs 31.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 821.9, stands at 11.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	1,589.2	1,267.6
TTM Earnings per share	Rs	31.1	69.8
Diluted earnings per share	Rs	31.1	69.8
Price to Cash Flow	x	8.8	7.8
TTM P/E ratio	x	13.8	11.8
Price / Book Value ratio	x	0.5	0.3
Market Cap	Rs m	11,464	8,279
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for VINDHYA TELELINKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.6x 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 3.1x during FY21, from 2.7x 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 2.9% during FY21, from 1.5% 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 7.7% during FY21, from 9.4% 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 3.2% during FY21, from 2.8% 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	1.6	1.6
Debtors’ Days	Days	2,136	2,804
Interest coverage	x	2.7	3.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	2.8	3.2
Return on equity	%	1.5	2.9
Return on capital employed	%	9.4	7.7

To see how VINDHYA TELELINKS has performed over the last 5 years, please visit here.

VINDHYA TELELINKS Share Price Performance

Over the last one year, VINDHYA TELELINKS share price has moved up from Rs 429.3 to Rs 821.9, registering a gain of Rs 392.6 or around 91.5%.

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

(To know more, check out historical annual results for VINDHYA TELELINKS and quarterly results for VINDHYA TELELINKS)