MOTHERSON SUMI 2020-21 Annual Report Analysis

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MOTHERSON SUMI 2020-21 Annual Report Analysis
Tue, 19 Oct

MOTHERSON SUMI 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.

MOTHERSON SUMI Income Statement Analysis

  • Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY21 as against 7.9% in FY20.
  • Depreciation charges increased by 7.5% and finance costs decreased by 13.7% YoY, respectively.
  • Other income grew by 11.2% YoY.
  • Net profit for the year grew by 20.0% YoY.
  • Net profit margins during the year grew from 1.9% in FY20 to 2.4% in FY21.

MOTHERSON SUMI Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 646,728 615,081 -4.9%
Other income Rs m 2,310 2,568 11.2%
Total Revenues Rs m 649,038 617,649 -4.8%
Gross profit Rs m 51,382 47,087 -8.4%
Depreciation Rs m 27,210 29,260 7.5%
Interest Rs m 5,928 5,115 -13.7%
Profit before tax Rs m 20,554 15,280 -25.7%
Tax Rs m 8,184 435 -94.7%
Profit after tax Rs m 12,370 14,845 20.0%
Gross profit margin % 7.9 7.7
Effective tax rate % 39.8 2.8
Net profit margin % 1.9 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MOTHERSON SUMI Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 211 billion as compared to Rs 196 billion in FY20, thereby witnessing an increase of 8.0%.
  • Long-term debt down at Rs 75 billion as compared to Rs 83 billion during FY20, a fall of 9.6%.
  • Current assets rose 13% and stood at Rs 220 billion, while fixed assets fell 3% and stood at Rs 240 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 471 billion as against Rs 450 billion during FY20, thereby witnessing a growth of 5%.

MOTHERSON SUMI Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 112,609 125,606 11.5
 
Current Liabilities Rs m 195,708 211,296 8.0
Long-term Debt Rs m 82,612 74,687 -9.6
Total Liabilities Rs m 449,928 470,626 4.6
 
Current assets Rs m 194,654 220,275 13.2
Fixed Assets Rs m 246,455 240,138 -2.6
Total Assets Rs m 449,928 470,626 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MOTHERSON SUMI Cash Flow Statement Analysis

  • MOTHERSON SUMI's cash flow from operating activities (CFO) during FY21 stood at Rs 51 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -19 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -21 billion, an improvement of 25% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 11 billion from the Rs 13 billion net cash flows seen during FY20.

MOTHERSON SUMI 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 63,520 50,513 -20.5%
Cash Flow from Investing Activities Rs m -22,399 -18,935 -
Cash Flow from Financing Activities Rs m -28,029 -20,975 -
Net Cash Flow Rs m 13,289 10,678 -19.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MOTHERSON SUMI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an improvement from the EPS of Rs 3.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 236.2, stands at 28.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.9 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 204.8 194.8
TTM Earnings per share Rs 3.9 4.7
Diluted earnings per share Rs 3.9 4.7
Price to Cash Flow x 18.8 16.9
TTM P/E ratio x 28.4 28.4
Price / Book Value ratio x 3.0 3.7
Market Cap Rs m 745,746 745,746
Dividends per share (Unadj.) Rs 1.5 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MOTHERSON SUMI

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x 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 deteriorated and stood at 4.0x during FY21, from 4.5x 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 11.8% during FY21, from 11.0% 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 declined and down at 10.2% during FY21, from 13.6% 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 4.2% during FY21, from 4.1% 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 1.0 1.0
Debtors’ Days Days 29 34
Interest coverage x 4.5 4.0
Debt to equity ratio x 0.7 0.6
Return on assets % 4.1 4.2
Return on equity % 11.0 11.8
Return on capital employed % 13.6 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved up from Rs 107.6 to Rs 236.2, registering a gain of Rs 128.6 or around 119.6%.

Overall, the S&P BSE SENSEX is up 52.0% over the year.

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

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Related Views on News

MOTHERSON SUMI Announces Quarterly Results (1QFY22); Net Profit Up 131.0% (Quarterly Result Update)

Aug 12, 2021 | Updated on Aug 12, 2021

For the quarter ended June 2021, MOTHERSON SUMI has posted a net profit of Rs 3 bn (up 131.0% YoY). Sales on the other hand came in at Rs 162 bn (up 93.5% YoY). Read on for a complete analysis of MOTHERSON SUMI's quarterly results.

MOTHERSON SUMI Announces Quarterly Results (4QFY20); Net Profit Down 66.4% (Quarterly Result Update)

Jun 5, 2020 | Updated on Jun 5, 2020

For the quarter ended March 2020, MOTHERSON SUMI has posted a net profit of Rs 1 bn (down 66.4% YoY). Sales on the other hand came in at Rs 152 bn (down 11.7% YoY). Read on for a complete analysis of MOTHERSON SUMI's quarterly results.

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