TINPLATE 2020-21 Annual Report Analysis

Wed, 31 Mar

TINPLATE 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.

TINPLATE Income Statement Analysis

• Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY21 as against 7.0% in FY20.
• Depreciation charges increased by 0.7% and finance costs decreased by 26.0% YoY, respectively.
• Other income grew by 0.5% YoY.
• Net profit for the year grew by 3.3% YoY.
• Net profit margins during the year declined from 4.5% in FY20 to 4.3% in FY21.

TINPLATE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,057	22,814	8.3%
Other income	Rs m	278	279	0.5%
Total Revenues	Rs m	21,335	23,093	8.2%
Gross profit	Rs m	1,481	1,734	17.1%
Depreciation	Rs m	612	617	0.7%
Interest	Rs m	105	78	-26.0%
Profit before tax	Rs m	1,042	1,319	26.7%
Tax	Rs m	91	338	270.1%
Profit after tax	Rs m	950	981	3.3%
Gross profit margin	%	7.0	7.6
Effective tax rate	%	8.8	25.6
Net profit margin	%	4.5	4.3

Dear Reader: If You Invest in Midcap Stocks, this is for You

TINPLATE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 2.1%.
• Current assets rose 12% and stood at Rs 9 billion, while fixed assets rose 15% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 14%.

TINPLATE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,607	8,461	11.2
Current Liabilities	Rs m	4,999	5,106	2.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,326	16,269	13.6
Current assets	Rs m	7,638	8,562	12.1
Fixed Assets	Rs m	6,688	7,707	15.2
Total Assets	Rs m	14,326	16,269	13.6

TINPLATE Cash Flow Statement Analysis

• TINPLATE's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 376.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 400.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -179 million, an improvement of 46% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 726 million from the Rs -123 million net cash flows seen during FY20.

TINPLATE 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	529	2,525	376.9%
Cash Flow from Investing Activities	Rs m	-324	-1,621	-
Cash Flow from Financing Activities	Rs m	-328	-179	-
Net Cash Flow	Rs m	-123	726	-

Current Valuations for TINPLATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 9.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 160.5, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.7 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	201.2	218.0
TTM Earnings per share	Rs	9.1	9.4
Diluted earnings per share	Rs	9.1	9.4
Price to Cash Flow	x	5.0	8.8
TTM P/E ratio	x	8.2	17.1
Price / Book Value ratio	x	1.5	1.7
Market Cap	Rs m	11,744	14,101
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for TINPLATE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.5x 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 18.0x during FY21, from 10.9x 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 11.6% during FY21, from 12.5% 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 improved and stood at 16.5% during FY21, from 15.1% 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 6.5% during FY21, from 7.4% 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	1.5	1.7
Debtors’ Days	Days	121	121
Interest coverage	x	10.9	18.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	6.5
Return on equity	%	12.5	11.6
Return on capital employed	%	15.1	16.5

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

TINPLATE Share Price Performance

Over the last one year, TINPLATE share price has moved up from Rs 74.7 to Rs 160.5, registering a gain of Rs 85.8 or around 114.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of TINPLATE