MOTHERSON SUMI 2020-21 Annual Report Analysis

Wed, 31 Mar

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

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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

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%

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 201.6, stands at 78.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	2.7	3.3
Price to Cash Flow	x	7.0	10.5
TTM P/E ratio	x	22.3	78.6
Price / Book Value ratio	x	3.0	3.7
Market Cap	Rs m	333,873	461,769
Dividends per share (Unadj.)	Rs	1.5	1.5

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

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 61.1 to Rs 201.6, registering a gain of Rs 140.5 or around 230.1%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of SAMVARDHANA MOTHERSON