SAREGAMA 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on January 26, 2022 on account of Republic Day.

SAREGAMA 2020-21 Annual Report Analysis
Thu, 18 Nov

SAREGAMA 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.

SAREGAMA Income Statement Analysis

  • Operating income during the year fell 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 115.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.4% in FY21 as against 11.6% in FY20.
  • Depreciation charges increased by 21.0% and finance costs decreased by 48.6% YoY, respectively.
  • Other income grew by 174.8% YoY.
  • Net profit for the year grew by 160.9% YoY.
  • Net profit margins during the year grew from 8.2% in FY20 to 24.0% in FY21.

SAREGAMA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 5,215 4,420 -15.2%
Other income Rs m 112 309 174.8%
Total Revenues Rs m 5,327 4,728 -11.2%
Gross profit Rs m 605 1,301 115.2%
Depreciation Rs m 46 56 21.0%
Interest Rs m 67 35 -48.6%
Profit before tax Rs m 603 1,519 151.7%
Tax Rs m 169 384 128.1%
Profit after tax Rs m 435 1,135 160.9%
Gross profit margin % 11.6 29.4
Effective tax rate % 27.9 25.3
Net profit margin % 8.2 24.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EV Stocks: Which is Tanushree's Top Pick?

SAREGAMA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 33.7%.
  • Current assets rose 37% and stood at Rs 6 billion, while fixed assets rose 17% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 28%.

SAREGAMA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,934 5,037 28.0
 
Current Liabilities Rs m 2,606 3,485 33.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,109 9,129 28.4
 
Current assets Rs m 4,092 5,605 37.0
Fixed Assets Rs m 3,017 3,523 16.8
Total Assets Rs m 7,109 9,129 28.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SAREGAMA Cash Flow Statement Analysis

  • SAREGAMA's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 139.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 2,610.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -495 million, an improvement of 32% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 41 million from the Rs 20 million net cash flows seen during FY20.

SAREGAMA 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 793 1,897 139.1%
Cash Flow from Investing Activities Rs m -50 -1,361 -
Cash Flow from Financing Activities Rs m -725 -495 -
Net Cash Flow Rs m 20 41 99.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SAREGAMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.1, an improvement from the EPS of Rs 25.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 4,301.0, stands at 63.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 69.6 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 299.2 253.6
TTM Earnings per share Rs 25.0 65.1
Diluted earnings per share Rs 22.6 58.8
Price to Cash Flow x 155.7 69.6
TTM P/E ratio x 57.7 63.8
Price / Book Value ratio x 1.8 3.4
Market Cap Rs m 74,949 82,927
Dividends per share (Unadj.) Rs 1.5 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SAREGAMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.6x 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 45.0x during FY21, from 10.0x 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 improved and stood at 22.5% during FY21, from 11.1% 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 30.8% during FY21, from 17.0% 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 improved and stood at 12.8% during FY21, from 7.1% 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 1.6 1.6
Debtors’ Days Days 759 721
Interest coverage x 10.0 45.0
Debt to equity ratio x 0.0 0.0
Return on assets % 7.1 12.8
Return on equity % 11.1 22.5
Return on capital employed % 17.0 30.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SAREGAMA Share Price Performance

Over the last one year, SAREGAMA share price has moved up from Rs 766.8 to Rs 4,301.0, registering a gain of Rs 3,534.2 or around 460.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,547.0 (down 1.7%). Over the last one year it has moved up from 9,899.1 to 15,547.0, a gain of 5,648 points (up 57.1%).

Overall, the S&P BSE SENSEX is up 35.3% over the year.

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

Equitymaster requests your view! Post a comment on "SAREGAMA 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

SAREGAMA Announces Quarterly Results (4QFY20); Net Profit Up 41.7% (Quarterly Result Update)

Jun 8, 2020 | Updated on Jun 8, 2020

For the quarter ended March 2020, SAREGAMA has posted a net profit of Rs 228 m (up 41.7% YoY). Sales on the other hand came in at Rs 1 bn (down 15.0% YoY). Read on for a complete analysis of SAREGAMA's quarterly results.

More Views on News

Most Popular

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

These 5 Penny Stocks are Held by Rakesh Jhunjhunwala. Worth a Look?(Views On News)

Jan 18, 2022

Rakesh Jhunjhunwala is holding these penny stocks in his portfolio for several years now.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

Time to Buy Energy Stocks(Fast Profits Daily)

Jan 14, 2022

Energy is a sector that looks set to take off. It's time to get in.

5 Hidden Tata Group Companies to Add to Your Watchlist(Views On News)

Jan 18, 2022

Here's all you need to know about these five Tata group stocks that aren't as popular as the others.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK SAREGAMA

  • Track your investment in SAREGAMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

SAREGAMA - SUNGOLD MEDIA & ENTERTAINMENT COMPARISON

COMPARE SAREGAMA WITH

MARKET STATS