SCHAEFFLER INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

SCHAEFFLER INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SCHAEFFLER INDIA Income Statement Analysis

• Operating income during the year rose 47.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 81.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in CY21 as against 14.3% in CY20.
• Depreciation charges increased by 1.6% and finance costs decreased by 17.5% YoY, respectively.
• Other income grew by 20.0% YoY.
• Net profit for the year grew by 116.2% YoY.
• Net profit margins during the year grew from 7.7% in CY20 to 11.3% in CY21.

SCHAEFFLER INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	37,618	55,605	47.8%
Other income	Rs m	603	724	20.0%
Total Revenues	Rs m	38,221	56,329	47.4%
Gross profit	Rs m	5,368	9,728	81.2%
Depreciation	Rs m	1,940	1,971	1.6%
Interest	Rs m	59	49	-17.5%
Profit before tax	Rs m	3,972	8,431	112.3%
Tax	Rs m	1,062	2,140	101.4%
Profit after tax	Rs m	2,910	6,291	116.2%
Gross profit margin	%	14.3	17.5
Effective tax rate	%	26.7	25.4
Net profit margin	%	7.7	11.3

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SCHAEFFLER INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 12 billion as compared to Rs 10 billion in CY20, thereby witnessing an increase of 24.0%.
• Current assets rose 25% and stood at Rs 34 billion, while fixed assets rose 7% and stood at Rs 16 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 50 billion as against Rs 42 billion during CY20, thereby witnessing a growth of 19%.

SCHAEFFLER INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	31,403	36,537	16.3
Current Liabilities	Rs m	9,576	11,872	24.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	42,125	50,096	18.9
Current assets	Rs m	27,261	34,158	25.3
Fixed Assets	Rs m	14,865	15,938	7.2
Total Assets	Rs m	42,125	50,096	18.9

SCHAEFFLER INDIA Cash Flow Statement Analysis

• SCHAEFFLER INDIA 's cash flow from operating activities (CFO) during CY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs -38 million from the Rs 949 million net cash flows seen during CY20.

SCHAEFFLER INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	6,492	4,647	-28.4%
Cash Flow from Investing Activities	Rs m	-4,325	-3,416	-
Cash Flow from Financing Activities	Rs m	-1,219	-1,269	-
Net Cash Flow	Rs m	949	-38	-

Current Valuations for SCHAEFFLER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 201.3, an improvement from the EPS of Rs 93.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,164.6, stands at 48.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 24.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	1,203.4	1,778.8
TTM Earnings per share	Rs	93.1	201.3
Diluted earnings per share	Rs	18.6	40.2
Price to Cash Flow	x	166.3	24.8
TTM P/E ratio	x	218.4	48.6
Price / Book Value ratio	x	4.0	5.6
Market Cap	Rs m	124,951	205,226
Dividends per share (Unadj.)	Rs	7.6	16.0

Ratio Analysis for SCHAEFFLER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during CY21, from 2.8x during CY20. 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 173.1x during CY21, from 67.9x during CY20. 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 improved and stood at 17.2% during CY21, from 9.3% during CY21. 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 23.2% during CY21, from 12.8% during CY20. 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 improved and stood at 12.7% during CY21, from 7.0% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	2.8	2.9
Debtors’ Days	Days	67	56
Interest coverage	x	67.9	173.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.0	12.7
Return on equity	%	9.3	17.2
Return on capital employed	%	12.8	23.2

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

SCHAEFFLER INDIA Share Price Performance

Over the last one year, SCHAEFFLER INDIA share price has moved down from Rs 5,047.8 to Rs 2,164.6, registering a loss of Rs 2,883.3 or around 57.1%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Read: Latest Annual Report Analysis of SCHAEFFLER INDIA