CYIENT 2020-21 Annual Report Analysis

Wed, 31 Mar

CYIENT 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.

CYIENT 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 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY21 as against 12.4% in FY20.
• Depreciation charges increased by 3.6% and finance costs decreased by 10.9% YoY, respectively.
• Other income grew by 5.2% YoY.
• Net profit for the year grew by 5.8% YoY.
• Net profit margins during the year grew from 7.8% in FY20 to 8.8% in FY21.

CYIENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	44,274	41,324	-6.7%
Other income	Rs m	1,583	1,665	5.2%
Total Revenues	Rs m	45,857	42,989	-6.3%
Gross profit	Rs m	5,489	5,484	-0.1%
Depreciation	Rs m	1,878	1,945	3.6%
Interest	Rs m	486	433	-10.9%
Profit before tax	Rs m	4,708	4,771	1.3%
Tax	Rs m	1,270	1,133	-10.8%
Profit after tax	Rs m	3,438	3,638	5.8%
Gross profit margin	%	12.4	13.3
Effective tax rate	%	27.0	23.7
Net profit margin	%	7.8	8.8

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CYIENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 15 billion in FY20, thereby witnessing an decrease of -3.0%.
• Long-term debt stood at Rs 882 million as compared to Rs 859 million during FY20, a growth of 2.7%.
• Current assets rose 12% and stood at Rs 33 billion, while fixed assets rose 2% and stood at Rs 21 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 53 billion as against Rs 49 billion during FY20, thereby witnessing a growth of 8%.

CYIENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	25,503	29,408	15.3
Current Liabilities	Rs m	15,394	14,938	-3.0
Long-term Debt	Rs m	859	882	2.7
Total Liabilities	Rs m	49,475	53,459	8.1
Current assets	Rs m	29,177	32,776	12.3
Fixed Assets	Rs m	20,298	20,683	1.9
Total Assets	Rs m	49,475	53,459	8.1

CYIENT Cash Flow Statement Analysis

• CYIENT's cash flow from operating activities (CFO) during FY21 stood at Rs 9 billion, an improvement of 46.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 43% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 5 billion from the Rs -101 million net cash flows seen during FY20.

CYIENT 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	5,824	8,558	46.9%
Cash Flow from Investing Activities	Rs m	-1,570	-1,007	-
Cash Flow from Financing Activities	Rs m	-4,463	-2,526	-
Net Cash Flow	Rs m	-101	4,994	-

Current Valuations for CYIENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.1, an improvement from the EPS of Rs 31.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 648.6, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	402.6	375.6
TTM Earnings per share	Rs	31.3	33.1
Diluted earnings per share	Rs	31.2	33.0
Price to Cash Flow	x	4.8	8.8
TTM P/E ratio	x	7.4	19.7
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	47,453	49,079
Dividends per share (Unadj.)	Rs	15.0	17.0

Ratio Analysis for CYIENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY21, from 1.9x 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 12.0x during FY21, from 10.7x 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 declined and down at 12.4% during FY21, from 13.5% 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 17.2% during FY21, from 19.7% 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 7.6% during FY21, from 7.9% 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	1.9	2.2
Debtors’ Days	Days	60	71
Interest coverage	x	10.7	12.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	7.6
Return on equity	%	13.5	12.4
Return on capital employed	%	19.7	17.2

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

CYIENT Share Price Performance

Over the last one year, CYIENT share price has moved up from Rs 229.7 to Rs 648.6, registering a gain of Rs 419.0 or around 182.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

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

Read: Latest Annual Report Analysis of CYIENT