VODAFONE IDEA 2020-21 Annual Report Analysis

Wed, 31 Mar

VODAFONE IDEA 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.

VODAFONE IDEA Income Statement Analysis

• Operating income during the year fell 6.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 87.0% YoY during the fiscal. Operating profit margins witnessed a growth and down at 7.3% in FY21 as against 52.6% in FY20.
• Depreciation charges decreased by 2.9% and finance costs increased by 17.2% YoY, respectively.
• Other income declined by 69.8% YoY.
• Net profit for the year declined by 40.1% YoY.
• Net profit margins during the year grew from 165.1% in FY20 to 106.0% in FY21.

VODAFONE IDEA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	449,575	419,522	-6.7%
Other income	Rs m	13,692	4,131	-69.8%
Total Revenues	Rs m	463,267	423,653	-8.6%
Gross profit	Rs m	-236,385	-30,660	-87.0%
Depreciation	Rs m	243,564	236,385	-2.9%
Interest	Rs m	155,266	181,934	17.2%
Profit before tax	Rs m	-621,523	-444,848	-28.4%
Tax	Rs m	120,811	-203	-100.2%
Profit after tax	Rs m	-742,334	-444,645	-40.1%
Gross profit margin	%	-52.6	-7.3
Effective tax rate	%	-19.4	0.0
Net profit margin	%	-165.1	-106.0

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VODAFONE IDEA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 664 billion as compared to Rs 958 billion in FY20, thereby witnessing an decrease of -30.7%.
• Long-term debt stood at Rs 1,574 billion as compared to Rs 963 billion during FY20, a growth of 63.5%.
• Current assets fell 16% and stood at Rs 141 billion, while fixed assets fell 10% and stood at Rs 1,894 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2,035 billion as against Rs 2,269 billion during FY20, thereby witnessing a fall of 10%.

VODAFONE IDEA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	59,143	-382,641	-747.0
Current Liabilities	Rs m	957,790	664,025	-30.7
Long-term Debt	Rs m	962,804	1,574,155	63.5
Total Liabilities	Rs m	2,269,176	2,034,783	-10.3
Current assets	Rs m	166,861	140,995	-15.5
Fixed Assets	Rs m	2,102,315	1,893,788	-9.9
Total Assets	Rs m	2,269,176	2,034,783	-10.3

VODAFONE IDEA Cash Flow Statement Analysis

• VODAFONE IDEA's cash flow from operating activities (CFO) during FY21 stood at Rs 156 billion, an improvement of 113.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -167 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -166 million from the Rs -4 billion net cash flows seen during FY20.

VODAFONE IDEA 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	73,275	156,397	113.4%
Cash Flow from Investing Activities	Rs m	-27,898	10,751	-
Cash Flow from Financing Activities	Rs m	-50,187	-167,314	-
Net Cash Flow	Rs m	-3,889	-166	-

Current Valuations for VODAFONE IDEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.5, an improvement from the EPS of Rs -25.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9.3, stands at -0.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.8 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1.2 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	15.6	14.6
TTM Earnings per share	Rs	-25.8	-15.5
Diluted earnings per share	Rs	-23.1	-13.8
Price to Cash Flow	x	-0.2	-1.2
TTM P/E ratio	x	-0.1	-0.7
Price / Book Value ratio	x	5.1	-0.6
Market Cap	Rs m	300,285	241,665
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VODAFONE IDEA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY21, from 0.2x 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 -1.4x during FY21, from -3.0x 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 improved and stood at 116.2% during FY21, from -1,255.2% 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 improved and stood at -22.1% during FY21, from -45.6% 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 -12.9% during FY21, from -25.9% 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	0.2	0.2
Debtors’ Days	Days	25	22
Interest coverage	x	-3.0	-1.4
Debt to equity ratio	x	16.3	-4.1
Return on assets	%	-25.9	-12.9
Return on equity	%	-1,255.2	116.2
Return on capital employed	%	-45.6	-22.1

To see how VODAFONE IDEA has performed over the last 5 years, please visit here.

VODAFONE IDEA Share Price Performance

Over the last one year, VODAFONE IDEA share price has moved up from Rs 3.1 to Rs 9.3, registering a gain of Rs 6.1 or around 197.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

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

(To know more, check out historical annual results for VODAFONE IDEA and quarterly results for VODAFONE IDEA)

Read: Latest Annual Report Analysis of VODAFONE IDEA