RATING

RECOMMENDATION

Speculative Investment

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RATING

RECOMMENDATION

Speculative Investment

Business Type

Traditional Business

RATING

RECOMMENDATION

Speculative Investment

Business Type

Traditional Business

  • Aricent Technologies Growth

Get detailed information about the Aricent Technologies Share Price. In this research report, you will get to know about Aricent Peers data. In addition, get the complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Aricent Technologies Revenue Growth

Growth in %

  • 2.48%

    1 Year

  • 1.89%

    3 Year

  • 1.86%

    5 Year

  • The company's revenue has increased by 2.48%, from Rs 2547 Cr in FY20 to Rs 2610 Cr in FY21. This is mainly due to the company's fixed price contracts increasing by Rs 66 Cr and time and material agreements increasing by Rs 14 Cr in FY21. In contrast, the revenue from product license and maintenance remained the same as last year. The slow down in all revenue segments was an impact of Covid-19, which the management has mentioned in their AGM.
  • Both of the contracts are explained ahead in this para. An agreement between a vendor or seller and a customer specifies the services that will be given, and the amount paid is known as a Fixed-price contract. A Time and Materials contract is a legal document that determines how much a contractor will bill their client based on the time and materials the team needs to do the job.

Aricent Technologies Net Profit Growth(PAT)

Growth in %

  • -72.11%

    1 Year

  • -0.56%

    3 Year

  • 0.78%

    5 Year

The company's net profit has declined steeply in the current year from Rs.702 cr. in FY20 to Rs.196 cr. in FY21, showing a drop of 72%. The company's revenue per expense after excluding the deferred tax for the years was 1.09 in FY21 as compared to 1.15 in FY20. The deferred tax has been excluded because the company received a tax refund of Rs. 354 Cr in FY20, due to which the company's profit had increased significantly. In FY21, the company's net profit also declined due to an increase in the Employee benefits expense by 9% in FY21 compared to FY20 and an 8% increase in interest expense in FY21 because of the increased interest payment of lease liabilities.

Aricent Technologies EPS Growth

Growth in %

  • -72.22%

    1 Year

  • 1.74%

    3 Year

  • 1.39%

    4 Year

The company's EPS fell by 72% in 2021 compared to 2020 due to a 72% y-o-y fall in net income from Rs. 703 cr. in FY20 to Rs. 196 cr. in FY21. The total outstanding shares for the company remain the same as the previous year, which was 13,11,96,104.

  • Aricent Technologies Book Value Growth

Growth in %

  • 21.59%

    1 Year

  • 20.96%

    2 Year

  • 14.33%

    4 Year

The book value per share has increased by 22% in FY21 over FY20. This is because the company's total equity has increased in FY21 due to the retained earnings increasing by Rs. 257 cr. in FY21 which has increased the other equity. Where as there was a decrease of Rs. 174 cr. in FY21. Since there has been no change in the number of shares outstanding in FY21, the book value per share has increased.

Aricent Technologies EBITDA Growth

Growth in %

  • -8.17%

    1 Year

  • 0.19%

    3 Year

  • 0.10%

    5 Year

The EBITDA has shown a fall of 8% in FY21 at Rs. 466 cr. compared to Rs. 507 cr. in FY20. This was due to an increase in  Employee benefit expenses by Rs. 142 cr. was contributed by salaries, bonuses, and incentives with an increase of Rs. 157 cr., contributions to provident and other funds with an increase of Rs. 11 cr. in FY21, and contributions to provident and other funds with an increase of Rs. 6 cr. In FY21.

Aricent Technologies Operating Profit Growth

Growth in %

  • -16.36%

    1 Year

  • -2.64%

    3 Year

  • -1.11%

    5 Year

The EBIT of the company has decreased from Rs. 307 cr. in FY21 to Rs. 360 cr. in FY20 showcasing a fall of 16% y-o-y. This is due to a rise in employee benefits costs by 9% in FY21 which was due to increased salaries, bonuses, & incentives, and contributions to provident when compared to FY20 as well as an increased interest expense by 8% y-o-y due to increase in interest expense of lease liabilities.

Aricent Technologies Asset Growth

Growth in %

  • 2.87%

    1 Year

  • 9.94%

    3 Year

  • 8.25%

    5 Year

The company's total assets have increased from Rs. 3,414 cr. in FY20 to Rs. 3,513 cr. in FY21. This is primarily due to the company increasing its investments in mutual funds by Rs 900 Cr as well as the increase in goodwill by Rs. 300 cr. . This increase in goodwill was due to amalgamation of the company with Aricent Technologies Private Limited in FY21. This increase in assets has been set off by the decrease in total receivables by Rs. 325 cr. approximately and decrease in other current assets. Hence the assets have increased by a mere 2.88% in FY21 over FY20.

Aricent Technologies Cash Flow from Operations

Growth in %

  • 538.09%

    1 Year

  • 67.13%

    3 Year

  • 20.65%

    5 Year

The company's cash flow from operations has increased by a massive 538% in FY21 over FY20, which is majorly attributable to the decrease in the company's trade receivables as well as the decrease in other assets and financial assets in FY21  by Rs. 342 cr. and Rs.146 cr. respectively. The major payment of trade receivables was from the related party transactions which accounted for Rs. 320 cr. The related party transactions receivables are the receivables in the balance of the affiliated companies and the ultimate holding company. As a result, the company's cash flow from operations increased to Rs. 955 cr. in FY21.

  • Aricent Technologies Solvency Ratios

Aricent Technologies D/E Ratio

The debt to equity ratio has increased to 0.07 in FY21 from 0.05 in FY20 depicting a growth of 53%. This is because of increase in short lease liabilities in FY21 of Rs. 7 Cr compared to FY20 which is a rise of 11% year on year. As a result, the total debt to has increased, whereas the total equity has increased by just 2.88% in FY21 over FY20, due to which the D/E ratio has increased. It is worth to note that the company has no debt on the books except lease liabilities. 

Aricent Technologies Current Ratio

The company's current ratio has decreased to 3.79 in FY21, which is a 7% decline from FY20. This is because the company's current liabilities increased sharply in FY20 and FY21 due to the high jump in short-term lease liabilities and other current liabilities by Rs 7 Cr and Rs 46 Cr responsibilities. As a result, despite the existing assets increasing by 25%, the current ratio has shown a decline of 6.68% in FY21  because the increase in current liabilities has exploited the ratio due to the low base effect.

Aricent Technologies Quick Ratio


Aricent Technologies Interest Coverage Ratio

The interest coverage ratio has decreased to 14.73 in FY21 compared to 19.07 in FY20, which shows a 23% y-o-y. This is due to an increase in interest expense driven by increased interest on lease liabilities, as well as a fall of 16% in EBIT due to the rise in deprecation cost and the overall operating expense by 13% and 5%, respectively in FY21. The increase in depreciation was driven by increased depreciation on the right use of assets and increased amortization on intangible assets by 29% and 157% y-o-y.

  • Aricent Technologies Operating Efficiency

Aricent Technologies Operating Profit EBIT Margin(OPM)

The EBIT margin of the company has decreased by 19% in FY21 over FY20. This is majorly attributable to the company's expenses in terms of employee benefit expenses, which was driven by increase in employee salary expenses which increase by Rs.157 cr. y-o-y because of which the EBIT has decreased in FY21, as well as the revenue from operations increasing because of fixed-price contracts increasing by INR 66 Cr and time and material agreements increasing by Rs. 14 cr. in FY21. 

Aricent Technologies Profit Before Tax Margin (PBT Margin)

Aricent Technologies Profit After Tax Margin (PAT Margin)

The company's net income margin has decreased from 28% in FY20 to 8% in FY21. This is because the company's net income has dropped steeply. After all, the company received a tax refund of Rs. 354 cr. in FY20, due to which the company's profit increased. On the other hand, the company's expenses increased in FY21, whereas the revenue did not rise commensurately. As a result, the company's net income margin declined by 73% in FY21.

  • Aricent Technologies Profitablity Ratio

The ability of a business to create money (profit) in relation to sales, balance sheet assets, operating costs, and shareholders' equity over a given time period is measured and evaluated by analysts and investors using profitability ratios. They demonstrate how well a business uses its resources to generate profit and shareholder value.

Aricent Technologies Return on Equity(RoE)

ROE of the company in FY21 has witnessed a fall of 77% in FY21 from FY20. As per Dupont Analysis, the net income margin drove an overall decrease in the ROE. Net income margin has witnessed a fall of 73% in FY21 from FY20, the reason being the decrease in net income from the previous year which was increased in FY20 due to tax adjustments of Rs. 354 cr. . Overall, the asset turnover ratio has seen a decline of 13% in FY21 from FY20, as the company has increased its assets which shows that the company is focused on its growth.

Aricent Technologies Return on Capital Employed(RoCE)

The return on capital employed of the company has shown a decline of 28% from 14% in FY20 to 10% in FY21. This is because the company's capital has increased by just 2% in FY21 over FY20 due to the company's total assets and current liabilities not growing dramatically during the mentioned period. On the other hand, the EBIT of the company decreased by 16% in FY21 over FY20 due to a substantial increase in salaries and wages. As a result, the ROCE has reduced to 10% in FY21.

Aricent Technologies Return to Assets (RoA)

ROA of Aricent technologies has seen a 76% rise year on year(y-o-y). This is due to increase assets by 3% in FY21 when compared to FY20 this was driven by increased goodwill by Rs. 293 cr. year on year as well as the decrease in overall net profits in FY21 by 72% when compared to FY20.

  • Aricent Technologies Valuation Ratios

Aricent Technologies Earning Yield