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SEAMEC 2020-21 Annual Report Analysis

Wed, 31 Mar

SEAMEC 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.

SEAMEC Income Statement Analysis

• Operating income during the year fell 33.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.4% in FY21 as against 44.0% in FY20.
• Depreciation charges increased by 3.6% and finance costs increased by 0.0% YoY, respectively.
• Other income grew by 30.6% YoY.
• Net profit for the year declined by 25.9% YoY.
• Net profit margins during the year grew from 34.7% in FY20 to 38.5% in FY21.

SEAMEC Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,841	2,568	-33.1%
Other income	Rs m	299	390	30.6%
Total Revenues	Rs m	4,140	2,958	-28.5%
Gross profit	Rs m	1,691	1,295	-23.4%
Depreciation	Rs m	546	566	3.6%
Interest	Rs m	57	57	0.0%
Profit before tax	Rs m	1,387	1,062	-23.4%
Tax	Rs m	54	75	37.1%
Profit after tax	Rs m	1,332	988	-25.9%
Gross profit margin	%	44.0	50.4
Effective tax rate	%	3.9	7.0
Net profit margin	%	34.7	38.5

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SEAMEC Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 1 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -38.5%.
• Long-term debt down at Rs 354 million as compared to Rs 504 million during FY20, a fall of 29.7%.
• Current assets fell 24% and stood at Rs 3 billion, while fixed assets rose 20% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 2%.

SEAMEC Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,611	6,621	18.0
Current Liabilities	Rs m	1,869	1,149	-38.5
Long-term Debt	Rs m	504	354	-29.7
Total Liabilities	Rs m	8,485	8,668	2.2
Current assets	Rs m	3,477	2,635	-24.2
Fixed Assets	Rs m	5,008	6,033	20.5
Total Assets	Rs m	8,485	8,668	2.2

SEAMEC Cash Flow Statement Analysis

• SEAMEC's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -216 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -326 million from the Rs 451 million net cash flows seen during FY20.

SEAMEC 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	2,336	1,063	-54.5%
Cash Flow from Investing Activities	Rs m	-1,925	-1,246	-
Cash Flow from Financing Activities	Rs m	58	-216	-
Net Cash Flow	Rs m	451	-326	-

Current Valuations for SEAMEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.8, an decline from the EPS of Rs 52.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 441.9, stands at 11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	151.0	101.0
TTM Earnings per share	Rs	52.4	38.8
Diluted earnings per share	Rs	52.4	38.9
Price to Cash Flow	x	3.6	6.7
TTM P/E ratio	x	5.0	11.4
Price / Book Value ratio	x	1.6	1.6
Market Cap	Rs m	9,217	10,431
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for SEAMEC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x 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 deteriorated and stood at 19.6x during FY21, from 25.3x 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 declined and down at 14.9% during FY21, from 23.7% 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 16.1% during FY21, from 23.6% 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 declined and down at 12.1% during FY21, from 16.4% 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	2.3
Debtors’ Days	Days	148	112
Interest coverage	x	25.3	19.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.4	12.1
Return on equity	%	23.7	14.9
Return on capital employed	%	23.6	16.1

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

SEAMEC Share Price Performance

Over the last one year, SEAMEC share price has moved up from Rs 263.7 to Rs 441.9, registering a gain of Rs 178.2 or around 67.6%.

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

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

Read: Latest Annual Report Analysis of SEAMEC