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Business Type

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RATING

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Sell

Business Type

Traditional Business

  • Axles India Growth

Get detailed information about the Axles India Pre IPO shares. In this research report, you will get to know about Axles India Limited (AIL) Key Ratio data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Axles India Revenue Growth

Growth in %

  • -23.64%

    1 Year

  • -13.61%

    3 Year

  • -10.00%

    5 Year

In FY21, the revenue of the company reduced by 23.64% year-on-year (y-o-y) due to vehicle production disruption because of covid related issues in the first half of the year, excess capacity of medium duty and heavy duty trucks created from upward enhancement of axle load norms by 15% and bus segment which was affected from restrictions on people movement and seating restrictions. Although, they should some improvement in construction related dump trucks and truck trailer bulk carriers for petroleum products, cement, steel, etc. in routes where they have advantage over railways it was not enough to offset the decrease in revenues due to vehicle production disruption.

Axles India Net Profit Growth(PAT)

Growth in %

  • -75.67%

    1 Year

  • -49.00%

    3 Year

  • -25.03%

    5 Year

In FY21, the net profit growth of the company reduced by 75.67% y-o-y as the revenue of the company decreased by 23.64% y-o-y. Moreover, the employee benefit expense increased marginally by 0.75% y-o-y, as the company did not layoff its employees even during covid restrictions which contributed to more decrease in net profit of the company.

Axles India EPS Growth

Growth in %

  • -78.32%

    1 Year

  • -51.44%

    3 Year

  • -27.55%

    5 Year

EPS of the company has showed similar reduction as with net income reduction. There were no changes made in the number of shares in the company.

  • Axles India Book Value Growth

Growth in %

  • -0.76%

    1 Year

  • 10.56%

    3 Year

  • 12.39%

    5 Year

Book value of the company has witnessed reduction of 0.76%. This decrease is explained by reduction in profit of the company by 75.67% which is reflected in the reserves and surplus of the company.

Axles India EBITDA Growth

Growth in %

  • -49.10%

    1 Year

  • -32.67%

    3 Year

  • -15.87%

    5 Year

EBITDA growth of the company has reduced by 49.10% in FY21 from FY20. the decline is primarily attributable to the slow realization of inventory on account of restriction imposed by COVID-19. 

Axles India Operating Profit Growth

Growth in %

  • -70.26%

    1 Year

  • -49.35%

    3 Year

  • -27.61%

    5 Year

In FY21, the company's fixed assets decreased by 9.93% y-o-y, which has lead to lower depreciation expense. Moreover, the margins were negatively influenced by fall in revenue on account of disruption in sales of vehicles and excess capacity of medium duty and heavy duty trucks created from upward enhancement of axle load norms by 15% and bus segment which was affected from restrictions on people movement and seating restrictions. 

Axles India Asset Growth

Growth in %

  • 31.98%

    1 Year

  • 5.03%

    3 Year

  • 5.68%

    5 Year

In FY21, the total assets of the company has increased by 31.98% y-o-y  mostly attributable to increase in current assets by 48% y-o-y. Current assets increased due to increase in total receivables by 58.54% y-o-y and increase in total inventory by 91.12% y-o-y. Based on the current orders in hand, the expected surge in demand for company’s products and the historical / expected gross margins, the company is of the view that there is no significant negative impact due to the COVID 19 pandemic on the carrying value of the inventory.

Axles India Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

In FY21, the cash flow from operations turned negative to Rs. -32.75 crores from Rs. 71.70 crores as the company reported less profit before tax of Rs. 4.04 crores from Rs. 13.97 crores. Also, the company recorded increase in trade receivables of Rs. 53.68 crores as compared to decrease in trade receivables of Rs. 52.21 crores which shows the company did not receive payments in cash for its sales in FY21. Moreover, the company increased its inventories to Rs. 44.03 crores from decrease in inventories of Rs. -23.09 crores which shows the company expects the sales to pick up in FY22.

  • Axles India Solvency Ratios

Axles India D/E Ratio

With an increase in overall debt of 63.83% in FY21 y-o-y, debt to equity ratio has increased by 9.52% in FY21. Also, total equity of the company decreased by 0.97% y-o-y as the company reported decrease in net profit for FY21. The overall debt increased due to increase in non-current borrowings as the company reported increase in packing credit in India of Rs. 15 crores in FY21. Also, the company reported increase in bills discounted with banks amounting to Rs. 58.64 crores in FY21 as compared to Rs. 38.92 crores in FY20. 

Axles India Current Ratio

In FY21, current assets increased by 48% y-o-y due to increase in inventories to Rs. 92.37 crores in FY21 from Rs. 48.33 crores in FY20 as the company expects surge in demand for company's products. Also, the trade receivables increased to Rs. 144.93 crores in FY21 from Rs. 91.42 crores in FY20 as the company has transferred the relevant receivables to the bill discounting in exchange for cash and is prevented from selling or pledging the receivables. But increase in current liabilities due to increase in borrowings to Rs. 77.01 crores in FY21 from Rs. 47.00 crores in FY20 and increase in trade payables to Rs. 90.85 crores in FY21 from Rs. 42.66 crores in FY20. Since, the increase in current liabilities is greater than increase in current assets, the current ratio declined in FY21.

Axles India Quick Ratio

The decline in the quick ratio has the same cause as the fall in current ratio as the increase in current liabilities was greater than increase in quick assets.

Axles India Interest Coverage Ratio

The company showed a decrease in interest coverage ratio due to decrease by 75.67% in net profit of the company in FY21. Although, the company managed to reduce the interest cost from Rs. 1.76 crores in FY20 to Rs. 0.63 crores in FY21, the decrease in net profit was more than the decrease in interest cost due to which the company reported decrease in interest coverage ratio. It means the company has deteriorated its liquidity position in terms of interest coverage ratio.

  • Axles India Operating Efficiency

The company's revenues declined by 23.64% in FY21 y-o-y due to which the operating margin ratios of the company have deteriorated. Moreover, the employee benefit expense remained almost the same in FY21 as compared to FY20, which also contributed to decline in operating margin ratio.

Axles India Operating Profit EBIT Margin(OPM)

Axles India Profit Before Tax Margin (PBT Margin)

Axles India Profit After Tax Margin (PAT Margin)

  • Axles India Profitablity Ratio

Axles India Return on Equity(RoE)

The company's ROE decreased by 72.22% in FY21 y-o-y. As per dupont analysis, the one primary contributor explaining the decrease has been the net income margin, which reduced by 66.67% in FY21 y-o-y. Asset turnover, on the other hand decreased by 28.35% from FY20, which was a result of covid 19 restriction and increase in current assets in FY21 y-o-y. The equity multiplier increased by 33.27% in FY21 y-o-y as the company's total assets increased due to increase in current assets, with total equity reducing on account of reduction in net income in FY21 y-o-y.

Axles India Return on Capital Employed(RoCE)

The company's ROCE decreased by 70.01% in FY21 y-o-y. This has been brought about by the decrease in net income of the company by 75.67% in FY21 with total capital employed remaining almost the same in FY21 as compared to FY20.

Axles India Return to Assets (RoA)

Return on assets of the company reduced in FY21 on account of reduction in net income of the company by 75.67% in FY21 y-o-y and due to increase in total assets of the company by 31.98% in FY21 y-o-y due to increase in current assets of the company.

  • Axles India Valuation Ratios

Axles India Dividend Yield

Axles India Earning Yield