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SAIL 2020-21 Annual Report Analysis
Wed, 31 Mar

SAIL 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.

SAIL Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 35.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY21 as against 15.3% in FY20.
  • Depreciation charges increased by 9.2% and finance costs decreased by 19.2% YoY, respectively.
  • Other income declined by 5.0% YoY.
  • Net profit for the year grew by 91.1% YoY.
  • Net profit margins during the year grew from 3.1% in FY20 to 5.3% in FY21.

SAIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 616,642 691,136 12.1%
Other income Rs m 9,058 8,607 -5.0%
Total Revenues Rs m 625,700 699,743 11.8%
Gross profit Rs m 94,440 127,972 35.5%
Depreciation Rs m 37,557 41,028 9.2%
Interest Rs m 34,868 28,172 -19.2%
Profit before tax Rs m 31,073 67,379 116.8%
Tax Rs m 11,809 30,575 158.9%
Profit after tax Rs m 19,264 36,804 91.1%
Gross profit margin % 15.3 18.5
Effective tax rate % 38.0 45.4
Net profit margin % 3.1 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SAIL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 467 billion as compared to Rs 450 billion in FY20, thereby witnessing an increase of 3.6%.
  • Long-term debt down at Rs 197 billion as compared to Rs 346 billion during FY20, a fall of 42.9%.
  • Current assets fell 21% and stood at Rs 324 billion, while fixed assets rose 4% and stood at Rs 871 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 1,194 billion as against Rs 1,250 billion during FY20, thereby witnessing a fall of 4%.

SAIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 415,102 454,062 9.4
 
Current Liabilities Rs m 450,360 466,766 3.6
Long-term Debt Rs m 345,600 197,260 -42.9
Total Liabilities Rs m 1,249,766 1,194,249 -4.4
 
Current assets Rs m 411,966 323,632 -21.4
Fixed Assets Rs m 837,800 870,617 3.9
Total Assets Rs m 1,249,766 1,194,249 -4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SAIL Cash Flow Statement Analysis

  • SAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 234 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -34 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -197 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 1 billion net cash flows seen during FY20.

SAIL 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 -6,177 234,304 -
Cash Flow from Investing Activities Rs m -42,605 -34,127 -
Cash Flow from Financing Activities Rs m 50,032 -196,899 -
Net Cash Flow Rs m 1,250 3,277 162.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SAIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an improvement from the EPS of Rs 4.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 78.9, stands at 8.8 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 2.7 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 149.3 167.3
TTM Earnings per share Rs 4.7 8.9
Diluted earnings per share Rs 4.7 8.9
Price to Cash Flow x 1.7 2.7
TTM P/E ratio x 4.9 8.8
Price / Book Value ratio x 0.4 0.5
Market Cap Rs m 165,841 212,722
Dividends per share (Unadj.) Rs 0.0 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SAIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.9x 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 3.4x 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 improved and stood at 8.1% during FY21, from 4.6% 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 14.7% during FY21, from 8.7% 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 5.4% during FY21, from 4.3% 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 0.9 0.7
Debtors’ Days Days 5 4
Interest coverage x 1.9 3.4
Debt to equity ratio x 0.8 0.4
Return on assets % 4.3 5.4
Return on equity % 4.6 8.1
Return on capital employed % 8.7 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SAIL Share Price Performance

Over the last one year, SAIL share price has moved up from Rs 23.1 to Rs 78.9, registering a gain of Rs 55.8 or around 242.1%.

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 SAIL and quarterly results for SAIL)

Annual Report FAQs

What is the current share price of SAIL?

SAIL currently trades at Rs 152.3 per share. You can check out the latest share price performance of SAIL here...

What was the revenue of SAIL in FY21? How does it compare to earlier years?

The revenues of SAIL stood at Rs 699,743 m in FY21, which was up 11.8% compared to Rs 625,700 m reported in FY20.

SAIL's revenue has grown from Rs 396,241 m in FY17 to Rs 699,743 m in FY21.

Over the past 5 years, the revenue of SAIL has grown at a CAGR of 15.3%.

What was the net profit of SAIL in FY21? How does it compare to earlier years?

The net profit of SAIL stood at Rs 36,804 m in FY21, which was up 91.1% compared to Rs 19,264 m reported in FY20.

This compares to a net profit of Rs 21,258 m in FY19 and a net loss of Rs -5,663 m in FY18.

Over the past 5 years, SAIL net profit has grown at a CAGR of NaN%.

What does the cash flow statement of SAIL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SAIL reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 234,304 m as compared to Rs -6,177 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -34,127 m as compared to Rs -42,605 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -196,899 m as compared to Rs 50,032 m in FY20.

Here's the cash flow statement of SAIL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations21,60161,63572,152-6,177234,304
From Investments-54,668-64,796-36,945-42,605-34,127
From Financial Activity33,0212,694-35,49150,032-196,899
Net Cashflow-45-466-2841,2503,277

What does the Key Ratio analysis of SAIL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SAIL reveals:

  • Operating profit margins witnessed a fall and down at 18.5% in FY21 as against 15.3% in FY20.
  • Net profit margins grew from 3.1% in FY20 to 5.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.4 as compared to 0.8 in FY20.

Here's the ratio/financial analysis of SAIL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)-0.48.314.015.318.5
Net Profit Margin (%)-7.5-1.03.23.15.3
Debt to Equity Ratio (x)0.50.80.80.80.4

Read: Latest Annual Report Analysis of SAIL

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