SCHAEFFLER INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

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

SCHAEFFLER INDIA Income Statement Analysis

• Operating income during the year rose 23.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in CY22 as against 17.5% in CY21.
• Depreciation charges increased by 4.7% and finance costs increased by 2.2% YoY, respectively.
• Other income grew by 7.3% YoY.
• Net profit for the year grew by 39.8% YoY.
• Net profit margins during the year grew from 11.3% in CY21 to 12.8% in CY22.

SCHAEFFLER INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	55,605	68,674	23.5%
Other income	Rs m	724	777	7.3%
Total Revenues	Rs m	56,329	69,451	23.3%
Gross profit	Rs m	9,728	13,108	34.8%
Depreciation	Rs m	1,971	2,065	4.7%
Interest	Rs m	49	50	2.2%
Profit before tax	Rs m	8,431	11,770	39.6%
Tax	Rs m	2,140	2,978	39.2%
Profit after tax	Rs m	6,291	8,792	39.8%
Gross profit margin	%	17.5	19.1
Effective tax rate	%	25.4	25.3
Net profit margin	%	11.3	12.8

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SCHAEFFLER INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 14 billion as compared to Rs 12 billion in CY21, thereby witnessing an increase of 17.1%.
• Current assets rose 16% and stood at Rs 40 billion, while fixed assets rose 20% and stood at Rs 19 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 59 billion as against Rs 50 billion during CY21, thereby witnessing a growth of 18%.

SCHAEFFLER INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	36,537	42,859	17.3
Current Liabilities	Rs m	11,872	13,903	17.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	50,096	59,103	18.0
Current assets	Rs m	34,158	39,559	15.8
Fixed Assets	Rs m	15,938	19,195	20.4
Total Assets	Rs m	50,096	59,103	18.0

SCHAEFFLER INDIA Cash Flow Statement Analysis

• SCHAEFFLER INDIA 's cash flow from operating activities (CFO) during CY22 stood at Rs 8 billion, an improvement of 61.5% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs -5 billion, an improvement of 56.5% on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs -410 million from the Rs -38 million net cash flows seen during CY21.

SCHAEFFLER INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	4,647	7,505	61.5%
Cash Flow from Investing Activities	Rs m	-3,416	-5,345	-
Cash Flow from Financing Activities	Rs m	-1,269	-2,570	-
Net Cash Flow	Rs m	-38	-410	-

Current Valuations for SCHAEFFLER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.3, an decline from the EPS of Rs 201.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,744.5, stands at 48.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 40.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	1,778.8	439.4
TTM Earnings per share	Rs	201.3	56.3
Diluted earnings per share	Rs	40.2	56.3
Price to Cash Flow	x	33.3	40.1
TTM P/E ratio	x	43.7	48.8
Price / Book Value ratio	x	5.6	10.2
Market Cap	Rs m	205,226	435,208
Dividends per share (Unadj.)	Rs	16.0	24.0

Ratio Analysis for SCHAEFFLER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during CY22, from 2.9x during CY21. 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 235.9x during CY22, from 173.1x during CY21. 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 20.5% during CY22, from 17.2% during CY22. 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 27.6% during CY22, from 23.2% during CY21. 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 15.0% during CY22, from 12.7% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	2.9	2.8
Debtors’ Days	Days	56	55
Interest coverage	x	173.1	235.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.7	15.0
Return on equity	%	17.2	20.5
Return on capital employed	%	23.2	27.6

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 up from Rs 1,082.1 to Rs 1,950.6, registering a gain of Rs 868.5 or around 80.3%.

Overall, the S&P BSE SENSEX is up 16.8% 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