SURYA ROSHNI 2020-21 Annual Report Analysis

Wed, 31 Mar

SURYA ROSHNI 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.

SURYA ROSHNI Income Statement Analysis

• Operating income during the year rose 1.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY21 as against 6.5% in FY20.
• Depreciation charges decreased by 0.7% and finance costs decreased by 38.8% YoY, respectively.
• Other income grew by 40.3% YoY.
• Net profit for the year grew by 54.4% YoY.
• Net profit margins during the year grew from 1.9% in FY20 to 2.8% in FY21.

SURYA ROSHNI Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	54,711	55,614	1.7%
Other income	Rs m	34	47	40.3%
Total Revenues	Rs m	54,744	55,661	1.7%
Gross profit	Rs m	3,542	3,793	7.1%
Depreciation	Rs m	1,035	1,027	-0.7%
Interest	Rs m	1,141	699	-38.8%
Profit before tax	Rs m	1,400	2,115	51.1%
Tax	Rs m	374	532	42.1%
Profit after tax	Rs m	1,026	1,583	54.4%
Gross profit margin	%	6.5	6.8
Effective tax rate	%	26.7	25.1
Net profit margin	%	1.9	2.8

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SURYA ROSHNI Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 13 billion as compared to Rs 13 billion in FY20, thereby witnessing an decrease of -4.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY20, a fall of 36.2%.
• Current assets fell 0% and stood at Rs 18 billion, while fixed assets fell 2% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 29 billion as against Rs 30 billion during FY20, thereby witnessing a fall of 1%.

SURYA ROSHNI Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	12,392	13,659	10.2
Current Liabilities	Rs m	13,317	12,663	-4.9
Long-term Debt	Rs m	2,700	1,722	-36.2
Total Liabilities	Rs m	29,710	29,414	-1.0
Current assets	Rs m	18,414	18,383	-0.2
Fixed Assets	Rs m	11,296	11,032	-2.3
Total Assets	Rs m	29,710	29,414	-1.0

SURYA ROSHNI Cash Flow Statement Analysis

• SURYA ROSHNI's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 95.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -659 million, an improvement of 36.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -8 million from the Rs -6 million net cash flows seen during FY20.

SURYA ROSHNI 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	2,765	5,400	95.3%
Cash Flow from Investing Activities	Rs m	-482	-659	-
Cash Flow from Financing Activities	Rs m	-2,289	-4,749	-
Net Cash Flow	Rs m	-6	-8	-

Current Valuations for SURYA ROSHNI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.5, an improvement from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 347.3, stands at 11.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	1,005.5	1,037.4
TTM Earnings per share	Rs	18.8	29.5
Diluted earnings per share	Rs	18.8	29.1
Price to Cash Flow	x	1.7	4.9
TTM P/E ratio	x	3.3	11.9
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	8,930	12,699
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for SURYA ROSHNI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.4x 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 4.0x during FY21, from 2.2x 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 11.6% during FY21, from 8.3% 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 18.3% during FY21, from 16.8% 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 7.8% during FY21, from 7.3% 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	1.4	1.5
Debtors’ Days	Days	5	5
Interest coverage	x	2.2	4.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.3	7.8
Return on equity	%	8.3	11.6
Return on capital employed	%	16.8	18.3

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

SURYA ROSHNI Share Price Performance

Over the last one year, SURYA ROSHNI share price has moved up from Rs 63.0 to Rs 347.3, registering a gain of Rs 284.3 or around 451.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of SURYA ROSHNI