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SADBHAV ENGINEERING 2020-21 Annual Report Analysis

Wed, 31 Mar

SADBHAV ENGINEERING 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.

SADBHAV ENGINEERING Income Statement Analysis

• Operating income during the year fell 35.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 76.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.8% in FY21 as against 75.8% in FY20.
• Depreciation charges decreased by 47.4% and finance costs decreased by 28.9% YoY, respectively.
• Other income declined by 5.6% YoY.
• Net profit for the year declined by 121.5% YoY.
• Net profit margins during the year declined from 31.7% in FY20 to 10.6% in FY21.

SADBHAV ENGINEERING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,871	22,433	-35.7%
Other income	Rs m	3,751	3,540	-5.6%
Total Revenues	Rs m	38,622	25,973	-32.8%
Gross profit	Rs m	26,444	6,228	-76.4%
Depreciation	Rs m	4,012	2,110	-47.4%
Interest	Rs m	14,120	10,046	-28.9%
Profit before tax	Rs m	12,063	-2,389	-119.8%
Tax	Rs m	1,001	-14	-101.4%
Profit after tax	Rs m	11,062	-2,374	-121.5%
Gross profit margin	%	75.8	27.8
Effective tax rate	%	8.3	0.6
Net profit margin	%	31.7	-10.6

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SADBHAV ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 42 billion as compared to Rs 35 billion in FY20, thereby witnessing an increase of 20.2%.
• Long-term debt down at Rs 54 billion as compared to Rs 56 billion during FY20, a fall of 4.7%.
• Current assets fell 2% and stood at Rs 40 billion, while fixed assets rose 3% and stood at Rs 85 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 126 billion as against Rs 124 billion during FY20, thereby witnessing a growth of 1%.

SADBHAV ENGINEERING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	16,007	14,453	-9.7
Current Liabilities	Rs m	34,794	41,816	20.2
Long-term Debt	Rs m	56,328	53,675	-4.7
Total Liabilities	Rs m	124,043	125,670	1.3
Current assets	Rs m	41,347	40,486	-2.1
Fixed Assets	Rs m	82,646	85,184	3.1
Total Assets	Rs m	124,043	125,670	1.3

SADBHAV ENGINEERING Cash Flow Statement Analysis

• SADBHAV ENGINEERING's cash flow from operating activities (CFO) during FY21 stood at Rs 12 billion, an improvement of 98.2% 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 -13 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 141 million from the Rs -385 million net cash flows seen during FY20.

SADBHAV ENGINEERING 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	5,975	11,841	98.2%
Cash Flow from Investing Activities	Rs m	13,109	1,182	-91.0%
Cash Flow from Financing Activities	Rs m	-19,468	-12,881	-
Net Cash Flow	Rs m	-385	141	-

Current Valuations for SADBHAV ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.8, an decline from the EPS of Rs 64.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.3, stands at -4.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -35.3 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	203.2	130.8
TTM Earnings per share	Rs	64.5	-13.8
Diluted earnings per share	Rs	64.5	-13.8
Price to Cash Flow	x	0.3	-35.3
TTM P/E ratio	x	0.4	-4.5
Price / Book Value ratio	x	1.6	0.6
Market Cap	Rs m	25,967	9,329
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SADBHAV ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.2x 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 0.8x during FY21, from 1.9x 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 -16.4% during FY21, from 69.1% 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 11.2% during FY21, from 36.2% 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 6.1% during FY21, from 20.3% 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	1.2	1.0
Debtors’ Days	Days	126	267
Interest coverage	x	1.9	0.8
Debt to equity ratio	x	3.5	3.7
Return on assets	%	20.3	6.1
Return on equity	%	69.1	-16.4
Return on capital employed	%	36.2	11.2

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

SADBHAV ENGINEERING Share Price Performance

Over the last one year, SADBHAV ENGINEERING share price has moved up from Rs 28.3 to Rs 62.3, registering a gain of Rs 34.0 or around 120.1%.

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 SADBHAV ENGINEERING and quarterly results for SADBHAV ENGINEERING)

Read: Latest Annual Report Analysis of SADBHAV ENGINEERING