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SWELECT ENERGY SYSTEMS 2020-21 Annual Report Analysis

Wed, 31 Mar

SWELECT ENERGY SYSTEMS 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.

SWELECT ENERGY SYSTEMS Income Statement Analysis

• Operating income during the year rose 0.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 248.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY21 as against 5.0% in FY20.
• Depreciation charges decreased by 5.8% and finance costs increased by 2.9% YoY, respectively.
• Other income grew by 8.2% YoY.
• Net profit for the year declined by 356.0% YoY.
• Net profit margins during the year grew from 4.0% in FY20 to 10.3% in FY21.

SWELECT ENERGY SYSTEMS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,522	2,525	0.1%
Other income	Rs m	276	299	8.2%
Total Revenues	Rs m	2,798	2,824	0.9%
Gross profit	Rs m	125	436	248.5%
Depreciation	Rs m	299	281	-5.8%
Interest	Rs m	173	178	2.9%
Profit before tax	Rs m	-70	275	-491.8%
Tax	Rs m	31	15	-53.2%
Profit after tax	Rs m	-102	260	-356.0%
Gross profit margin	%	5.0	17.2
Effective tax rate	%	-44.8	5.4
Net profit margin	%	-4.0	10.3

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SWELECT ENERGY SYSTEMS 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 3.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 395 million during FY20, a growth of 277.2%.
• Current assets rose 14% and stood at Rs 6 billion, while fixed assets rose 15% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 14%.

SWELECT ENERGY SYSTEMS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,195	7,426	3.2
Current Liabilities	Rs m	2,719	2,824	3.9
Long-term Debt	Rs m	395	1,490	277.2
Total Liabilities	Rs m	10,442	11,915	14.1
Current assets	Rs m	5,076	5,766	13.6
Fixed Assets	Rs m	5,366	6,149	14.6
Total Assets	Rs m	10,442	11,915	14.1

SWELECT ENERGY SYSTEMS Cash Flow Statement Analysis

• SWELECT ENERGY SYSTEMS's cash flow from operating activities (CFO) during FY21 stood at Rs 332 million, an improvement of 17.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 375.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 943 million, an improvement of 2,345% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -148 million from the Rs -57 million net cash flows seen during FY20.

SWELECT ENERGY SYSTEMS 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	284	332	17.0%
Cash Flow from Investing Activities	Rs m	-300	-1,424	-
Cash Flow from Financing Activities	Rs m	-42	943	-
Net Cash Flow	Rs m	-57	-148	-

Current Valuations for SWELECT ENERGY SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs -6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 201.1, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	166.4	166.6
TTM Earnings per share	Rs	-6.7	17.2
Diluted earnings per share	Rs	-6.7	17.2
Price to Cash Flow	x	6.4	4.3
TTM P/E ratio	x	-12.4	11.7
Price / Book Value ratio	x	0.4	0.3
Market Cap	Rs m	2,697	2,344
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for SWELECT ENERGY SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.9x 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 2.5x during FY21, from 0.6x 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 3.5% during FY21, from -1.4% 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 5.1% during FY21, from 1.3% 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 3.7% during FY21, from 0.7% 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	1.9	2.0
Debtors’ Days	Days	782	965
Interest coverage	x	0.6	2.5
Debt to equity ratio	x	0.1	0.2
Return on assets	%	0.7	3.7
Return on equity	%	-1.4	3.5
Return on capital employed	%	1.3	5.1

To see how SWELECT ENERGY SYSTEMS has performed over the last 5 years, please visit here.

SWELECT ENERGY SYSTEMS Share Price Performance

Over the last one year, SWELECT ENERGY SYSTEMS share price has moved up from Rs 83.1 to Rs 201.1, registering a gain of Rs 118.1 or around 142.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for SWELECT ENERGY SYSTEMS and quarterly results for SWELECT ENERGY SYSTEMS)

Read: Latest Annual Report Analysis of SWELECT ENERGY SYSTEMS