TEJAS NETWORKS 2021-22 Annual Report Analysis

Wed, 6 Jul

TEJAS NETWORKS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TEJAS NETWORKS Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 254.8% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 14.6% in FY22 as against 9.9% in FY21.
• Depreciation charges increased by 47.3% and finance costs decreased by 13.8% YoY, respectively.
• Other income grew by 64.2% YoY.
• Net profit for the year declined by 267.0% YoY.
• Net profit margins during the year declined from 7.1% in FY21 to 11.4% in FY22.

TEJAS NETWORKS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,266	5,506	4.6%
Other income	Rs m	264	433	64.2%
Total Revenues	Rs m	5,530	5,939	7.4%
Gross profit	Rs m	520	-805	-254.8%
Depreciation	Rs m	521	768	47.3%
Interest	Rs m	37	32	-13.8%
Profit before tax	Rs m	225	-1,171	-620.1%
Tax	Rs m	-150	-544	262.3%
Profit after tax	Rs m	375	-627	-267.0%
Gross profit margin	%	9.9	-14.6
Effective tax rate	%	-66.7	46.5
Net profit margin	%	7.1	-11.4

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TEJAS NETWORKS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 4.7%.
• Current assets rose 80% and stood at Rs 17 billion, while fixed assets fell 13% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 13 billion during FY21, thereby witnessing a growth of 59%.

TEJAS NETWORKS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	11,011	15,635	42.0
Current Liabilities	Rs m	1,599	1,674	4.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,552	19,988	59.2
Current assets	Rs m	9,702	17,497	80.3
Fixed Assets	Rs m	2,850	2,491	-12.6
Total Assets	Rs m	12,552	19,988	59.2

TEJAS NETWORKS Cash Flow Statement Analysis

• TEJAS NETWORKS's cash flow from operating activities (CFO) during FY22 stood at Rs -173 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 billion, an improvement of 394.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 8 billion, an improvement of 24,502% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -59 million from the Rs -131 million net cash flows seen during FY21.

TEJAS NETWORKS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,577	-173	-
Cash Flow from Investing Activities	Rs m	-1,673	-8,278	-
Cash Flow from Financing Activities	Rs m	-34	8,394	-
Net Cash Flow	Rs m	-131	-59	-

Current Valuations for TEJAS NETWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 446.6, stands at -107.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 296.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	56.5	48.1
TTM Earnings per share	Rs	4.0	-5.5
Diluted earnings per share	Rs	2.5	-4.1
Price to Cash Flow	x	26.9	296.0
TTM P/E ratio	x	64.3	-107.9
Price / Book Value ratio	x	1.1	2.7
Market Cap	Rs m	11,655	41,650
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TEJAS NETWORKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 10.5x during FY22, from 6.1x during FY21. 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 deteriorated and stood at -35.7x during FY22, from 7.1x during FY21. 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 -4.0% during FY22, from 3.4% during FY22. 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 -7.3% during FY22, from 2.4% during FY21. 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 -3.0% during FY22, from 3.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	6.1	10.5
Debtors’ Days	Days	24	19
Interest coverage	x	7.1	-35.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.3	-3.0
Return on equity	%	3.4	-4.0
Return on capital employed	%	2.4	-7.3

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

TEJAS NETWORKS Share Price Performance

Over the last one year, TEJAS NETWORKS share price has moved up from Rs 189.2 to Rs 446.6, registering a gain of Rs 257.5 or around 136.1%.

Overall, the S&P BSE SENSEX is up 1.6% over the year.

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

Read: Latest Annual Report Analysis of TEJAS NETWORKS